Posted February 27, 2014
Four Charts Show How Impressive the Shale Energy Boom Is
U.S. Chamber Blog: How important has the shale energy boom been to jobs and the economy? Very important. Mark Mills of the Manhattan Institute writes in a new report that the oil and natural gas sector has “provided a greater single boost to the U.S. economy than any other sector.” He adds:
The $300–$400 billion overall annual economic gain from the oil & gas boom has been greater than the average annual GDP growth of $200–$300 billion in recent years—in other words, the economy would have continued in recession if it were not for the unplanned expansion of the oil & gas sector.
On jobs, Mills found impressive growth nationwide as well as in states experiencing the shale boom up close and personal.
These four charts from Mills’ report show how the shale energy boom has been the job creation story of our economic recovery.
Posted February 26, 2014
Surge in Fuel Exports Boosting U.S. Trade Balance
Fuel Fix Blog: HOUSTON — Growing production of U.S. oil and gas is helping to improve the nation’s trade balance, according to a federal report Monday.
Dramatic growth in the export of refined petroleum products, such as jet fuel and gasoline, has led the way. The value of net refined exports increased 55 percent in 2013 over the prior year, reaching $33 billion, according to the U.S. Energy Information Administration.
U.S. refiners are finding cheaper domestic alternatives to overseas oil, causing a rally in the ratio of refined fuel exports to imports. Overall energy export values increased 8 percent in 2013 over the prior year. Total energy imports to the U.S. fell by 11 percent for the same time period.
Posted February 21, 2014
Well-Being in America: Shale Gas Buys You Happiness
The Economist: Based on interviews with more than 178,000 people from all 50 states, the Well-Being Index offers an interesting glimpse of the physical and mental health of the nation. It also spotlights the country's winners and losers. The results divide regionally, with Midwestern and Western states earning nine of the ten best scores in 2013, while Southern states have eight of the ten lowest. Massachusetts has the highest rate of residents with health insurance (which may bode well for Obamacare). Colorado, meanwhile, nearly always has the lowest obesity rate.
Sitting pretty in first place now is North Dakota, which has displaced Hawaii as the state where people are most likely to be healthy and feel good about their life and work. North Dakota’s speedy climb to first place from 19 last year seems to have a lot to do with the shale-gas boom, which has buoyed the state with lots of new jobs and money. This bonanza has apparently trickled into South Dakota, which has elbowed aside Colorado to secure second place.
Posted February 21, 2014
It’s hard to look at the delays that have kept the Keystone XL pipeline on the drawing board for more than five years and not think about the countless American workers – in construction, fabrication, supply, transport and other sectors – who would be helped by the project finally getting under way. People like Billy Rogers.
We met Rogers last year and he spoke about how a large, shovel-ready infrastructure project like the Keystone XL benefits working men and women. He knew this full well, being among 5,000 U.S. workers building Keystone XL’s southern leg, Gulf Coast Pipeline in Texas and Oklahoma:
“Working on the Gulf Coast Project has afforded me a good income that allows me to support my family. In addition, the construction of this project has had a significant impact in the local communities in which we work as the hundreds of crew members spend their money locally in restaurants, grocery stores, shops – everyone is benefiting.”
Our economy needs more good-news stories like Rogers’ – as many as possible.
Posted February 19, 2014
The Geopolitical Consequences of the Shale Revolution
Foreign Affairs (Blackwell and O’Sullivan): Only five years ago, the world’s supply of oil appeared to be peaking, and as conventional gas production declined in the United States, it seemed that the country would become dependent on costly natural gas imports. But in the years since, those predictions have proved spectacularly wrong. Global energy production has begun to shift away from traditional suppliers in Eurasia and the Middle East, as producers tap unconventional gas and oil resources around the world, from the waters of Australia, Brazil, Africa, and the Mediterranean to the oil sands of Alberta. The greatest revolution, however, has taken place in the United States, where producers have taken advantage of two newly viable technologies to unlock resources once deemed commercially infeasible: horizontal drilling, which allows wells to penetrate bands of shale deep underground, and hydraulic fracturing, or fracking, which uses the injection of high-pressure fluid to release gas and oil from rock formations.
Posted February 18, 2014
U.S. Energy Secretary Says Fracking Brings Prosperity
Capital New York: ALBANY—U.S. energy secretary Ernest Moniz said Andrew Cuomo should consider the economic prosperity fracking has brought to Pennsylvania as he weighs a ban in New York.
Natural gas produced by fracking has boosted American industry by more than $100 billion and lowered CO2 emissions, Moniz said, in an interview with Capital.
“This new resource is of critical importance. If you look at Pennsylvania, it's amazing, in the Marcellus shale,” he said. “They have gone from a very, very minor contributor to the national natural gas production, to nearly 20 percent in a remarkably short period. And as we know, that has had enormous economic benefits for the state. Obviously, New York will presumably take that as one of the factors to be considered in its decision.”
Moniz acknowledged that high-volume hydraulic fracturing presents environmental challenges, but said it can also be done safely. Proper management of wells is important including minimizing water usage as well as recycling and the careful monitoring of surface water and flow back fluids.
Posted February 14, 2014
How Low-Cost Natural Gas May be Helping to Fuel a Resurgence in U.S. Manufacturing
Fox Business: Inexpensive natural gas may be giving the U.S. a powerful and unique cost advantage that is incentivizing hundreds of companies to manufacture in the United States.
According to research conducted by Boston Consulting Group that was released Thursday, cheap natural gas will have a critical impact on U.S. manufacturing over the next several years that will benefit a wide variety of industries, from feedstock to finished goods.
“We are seeing an impact,” said BCG Senior Partner Hal Sirkin. “We can identify over 200 companies that are part of this manufacturing renaissance, moving jobs back to the United States.”
Posted February 13, 2014
Fuel Fix Blog: While the January jobs report was a disappointing for the national economy, it brought good news about growth in oil and gas.
About 206,000 employees worked in the oil and gas extraction sector in January, about 1.8 percent more than in December, according to the Bureau of Labor Statistics. Nationwide, total employment was relatively stagnant at a seasonally adjusted 137.5 million.
The employment story was positive across sectors of the energy industry. Manufacturing of petroleum and coal products had 112,700 employees on payrolls, a 1.6 percent increase from December. The chemicals sector grew by 1.2 percent to 796,100 people.
Posted February 13, 2014
What They’ve Said About Keystone XL: Build It!
It’s hard to overstate the broad-based nature of political support for the Keystone XL pipeline, support that stems from the project’s benefits: upwards of 830,000 barrels a day of oil from Canada’s oil sands and the U.S. Bakken region, 42,100 jobsduring the pipeline’s construction phase, strengthened energy security – with the Keystone XL playing an integral role in a broad strategy that could see 100 percent of U.S. liquid fuel needs met domestically and from Canada.
Posted February 12, 2014
The United States is home to some of the world's largest natural gas deposits and supplies have flooded the market over the last five years, erasing concerns about dwindling output.
But the coldest winter in decades has drained stockpiles quicker than ever, forced rationing, and pushed prices to all-time highs, revealing the difficulties of storing and transporting fuel across the continent.