Posted July 18, 2013
The history of modern crude oil prices includes a number of instances where historical events have accompanied dramatic price shifts. Simply: Events that impact or could impact supply affect the global crude oil market. And, because the cost of crude is the main driver of gasoline prices – currently about 66 percent
Posted July 15, 2013
Posted May 31, 2013
The U.S. Energy Information Administration has a new report that details the decline in sales of oil and natural gas from production on federal lands (2003-2012). Key points:
- Sales of crude oil from federal lands, onshore and offshore, decreased 5 percent in fiscal year 2012 (ended Sept. 30) to 596 million barrels from 629 million barrels in FY 2011. That includes an 8-percent decrease in offshore volumes, partially offset by an 8-percent increase in much smaller onshore volumes.
- Natural gas sales from federal lands decreased 7 percent in FY 2012 to 4,262 billion cubic feet (bcf) from 4,584 bcf in FY 2011. Offshore volumes were down 19 percent, while onshore was virtually unchanged.
- Sales of all fossil fuels produced on federal lands (also including coal and natural gas plant liquids) fell by 4 percent in FY 2012.
Posted May 23, 2013
Gasoline prices have been rising with the approach of the summer driving season – up to about $3.66, according to AAA – pushed there by rising crude oil prices. U.S. consumers need help. And they could get it – if the administration pursued a number of energy policies to put downward pressure on global crude costs, while abandoning other choices that could harm consumers.
API Chief Economist John Felmy’s reporter briefing Thursday focused attention on two paths: one that will increase domestic production of oil and natural gas and one that won’t. Unfortunately, the administration – via proposals to increase energy taxes and a new wave of questionable regulation – looks headed down the wrong path, a recipe for disaster for American energy:
Posted May 21, 2013
Two new reports outline the importance of crafting the right policies to capitalize on America’s vast wealth in shale natural gas.
An American Chemistry Council (ACC) analysis points to rich capital investments and job gains to be realized in that sector because of abundant, affordable supplies of shale natural gas:
- $71.7 billion in chemical industry investments publicly announced through the end of March.
- 46,000 new chemical industry jobs by 2020.
- 264,000 jobs in supplier industries by 2020.
- 226,000 induced jobs in communities where chemical industry workers spend their wages.
- $20 billion in federal, state and local tax revenue.
Posted April 5, 2013
Reasons why the oil and natural gas industry talks about a regulatory “tsunami” coming down from EPA:
- A newly proposed Tier 3 rule to further lower sulfur content in gasoline – that would have “very small” additional environmental benefit, according to a recent study. At the same time, it could increase the manufacturing cost of gasoline by up to 9 cents per gallon. (More on Tier 3 below.)
- Increases in the federal ethanol mandate under the Renewable Fuel Standard – which could add to the manufacturing cost of gasoline by about 30 percent by 2015, according to a study by NERA Economic Consulting. (Posts on that here, here, here and here.)
- A potential vapor pressure reduction requirement that could increase refinery costs.
- An expected Refinery Sector Rule, new ozone requirements and greenhouse gas controls for refineries.
Posted April 1, 2013
API is out with two new oil and natural gas industry standards on well design and drilling operations:
- Deepwater well design and construction
- Protocol for verification and validation of high-pressure, high-temperature equipment
Both represent advancements toward making oil and natural gas extraction safer – for people and the environment. David Miller, API director of standards:
“Every industry standard we develop shares the goal of safely and responsibly producing more of the energy America needs. These new guidelines will help the industry to continue operating safely in deeper, higher pressure, and higher temperature environments. As changing technologies provide better opportunities to develop the energy that fuels America, industry standards must adapt as well.”
Posted February 15, 2013
Of the energy-related lines in the president’s State of the Union address earlier this week, none stood out more than this one:
“… the natural gas boom has led to cleaner power and greater energy independence. That's why my administration will keep cutting red tape and speeding up new oil and gas permits.”
Certainly, the president is right, that the development of natural gas – especially from shale, developed with hydraulic fracturing – and oil are a big part of shrinking imports and cleaner air.
First the environment. We’ll keep saying it: Increased use of natural gas is a major factor in the reduction of U.S. carbon emissions to 1992 levels, which is allowing the U.S. to lead the world in emissions reduction, according to the International Energy Agency – all while producing more than ever before.
Posted January 18, 2013
At last week’s State of American Energy event in Washington, D.C., we interviewed some of the attendees on the future of U.S. energy development – which we’ll share in future posts. Below, BP America Executive Vice President Dave Nagel talks about America’s opportunity to move toward energy self-sufficiency through purposeful and careful management of its oil and natural gas reserves
Posted January 11, 2013
U.S. Chamber of Commerce President and CEO Tom Donohue in his annual State of American Business address, rightly identifying American-made energy as a critical to broad economic recovery and to solving the nation’s fiscal problems:
“Today, 23 million Americans are unemployed, underemployed, or have stopped looking for work. A record 47 million people are poor enough to be on food stamps. Median family income has dropped to 1995 levels—so we’re going backward. … From top to bottom we need more success in America. We need to nurture success, empower it, reward it, and celebrate it. … Proceeding swiftly and responsibly to develop more American energy can help us immeasurably with our fiscal problems, but it can also do so much more for our country.”