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 May 17, 2013
Free Enterprise – Keystone XL: Real Benefits for the U.S.
Sean Hackbarth notes Keystone XL pipeline developments this week: The House Transportation Committee advanced a bill that would allow construction of the full pipeline – the third congressional committee to do so; Canadian Prime Minister Stephen Harper was in New York City touting the project’s benefits for both the U.S. and Canada; and a small business owner in Maryland told the president that businesses like his would get a boost from the project.
The Hill – DOE Approves Natural Gas Export Project
A Texas LNG facility has the green light from DOE for exports to non-free trade nations. DOE noted that project opponents “have not demonstrated that the requested authorization would be inconsistent with the public interest.”
Posted May 16, 2013
Breaking Energy – Sieminski: U.S. Tight Oil Growth Helping Lower Global Crude Price
U.S. tight oil production has helped to shave about $20-$25 per barrel from Brent crude oil prices, and continued output growth could further impact global pricing, says Energy Information Administration Administrator Adam Sieminski.
E! Science News – Groundwater Unaffected by Shale Gas Production in Arkansas
Duke University and U.S. Geological Survey scientists sampled 127 shallow drinking water wells in areas overlying Fayetteville Shale gas production in north-central Arkansas and found no ground water contamination from hydraulic fracturing.
Posted May 16, 2013
An early look at the Bureau of Land Management’s (BLM) proposed new rule governing hydraulic fracturing on federal and Indian lands shows the challenge of trying to create a new rule that doesn’t just add regulation on top of effective state rules already in place.Certainly, BLM’s aim with this rule, compared to a previous version, was to take hydraulic fracturing regulation in a better direction – acknowledging the role of the states and measures including FracFocus.org, the online fracking fluid registry. And it appears BLM has done that to some degree.
Posted May 15, 2013
Key findings in a new report by ICF International, analyzing the potential impacts of exporting U.S. liquefied natural gas (LNG):
Jobs – Average net growth is projected to range from 73,100 to 452,300 between 2016 and 2035.
Posted May 15, 2013
Washington Examiner – Fracking Could Create New Wealth for New York
In a guest column, former Department of Labor Chief Economist Diana Furchtgott-Roth discusses the opportunities hydraulic fracturing could bring to New York state. “Using the Pennsylvania data to project fracking's effect on New York counties, I find that the incomes of those who live in the 28 New York counties above the Marcellus Shale have the potential to expand by as much as 15 percent over the next four years -- if the state's moratorium is lifted.”
National Journal – Natural Gas Exports Loom Large Over Washington
NJ’s Amy Harder takes a look at the liquefied natural gas debate after a visit to Dominion’s Cove Point, Md., facility – a former import terminal waiting for federal approval to add export capabilities.
Posted May 14, 2013
Energy Biz – Shale Gas Shifting Global Energy Map
The global development of shale gas has the potential to boost worldwide natural gas supplies and help reduce market costs, writes Siemens Financial Services President Kirk Edelman. “For the U.S., the shale gas boom is still perhaps only a potential game changer, however, if realized, the economic benefits will be significant.”
Breaking Energy – The Science Behind the Keystone XL Pipeline Decision
Breaking Energy recaps the congressional Energy and Environmental Subcommittees’ joint hearing on the Keystone XL pipeline last week. Rep. Chris Stewart noted that Keystone XL has been under review for more than four years, which is how long it took to fight World War II, build most of the transcontinental railroad and the typical length of a college education.
Posted May 13, 2013
The Associated Press has this look at momentum for exporting U.S. natural gas, driven by an abundance of natural gas from shale via hydraulic fracturing. Bill Cooper, president of the Center for Liquefied Natural Gas, tells AP:
“LNG exports are a huge opportunity for the United States economy, our workers and our geopolitical relationships with countries such as Japan that are seeking to import natural gas. LNG exports will create jobs, increase government revenue and benefit consumers.”
Cooper is right. Studies – like this one for the Energy Department and this one by ICF International – show how America’s wealth in natural gas from shale could support demand here and overseas, to America’s benefit in terms of job and economic growth.
Posted May 9, 2013
Blogger Mark J. Perry writes about a recent analysis by the Minneapolis Fed that delved into the economic impact of increased shale development in the Bakken area of North Dakota. The report found that counties within 100 miles of the Bakken experienced the next-largest increase in wages and the next-lowest level of unemployment, compared to other counties in the state.
CNBC highlights the surge in natural gas production through hydraulic fracturing in the Marcellus Shale play. The Marcellus "is at the sunrise of this [energy] renaissance. This is going to be just the beginning of an economic juggernaut for the US and Pennsylvania."
Posted May 7, 2013
The Wall Street Journal has an incisive editorial this week that compares the diverging trajectories of two big, energy-rich states: Texas and California. Texas is flush with well-paying oil and natural gas jobs, supported by shale development spurred by advances in hydraulic fracturing and horizontal drilling. The Journal notes that more than 400,000 Texans work in the oil and natural gas industry – nearly 10 times as many as in California – and the state has doubled its oil output since 2005. California? It used to be mentioned in the same breath as oil giants Texas and Alaska, but oil production is down 21 percent since 2001 and it has slipped out of the top-three tier of oil-producing states.