Posted April 28, 2014
An infographic that clearly illustrates America’s choice on shale energy: significant economic growth, job creation and generated revenue for government because of continued energy development – vs. lost opportunity in all three areas if development is restricted.
The information is from IHS’ study on the economic impacts of unconventional oil and natural gas development – energy from shale and other tight-rock formations, safely and responsibly produced with advanced hydraulic fracturing and horizontal drilling.
Posted April 22, 2014
Let’s start with a humorous look at some of the Keystone XL pipeline’s most ardent opponents, some of whom talk and act like they yearn for the days of yesteryear. You know – getting around on horses, cooking over campfires, living in tents and such.
It’s no exaggeration to say that their dream world would not include oil or natural gas use and no electricity – or at least no electricity generated from natural gas and coal, which the U.S. Energy Information Administration says accounted for more than 66 percent of our power generation last year. Their simpler world – without fossil fuels – actually would be pretty complicated. Think about it.
Posted April 21, 2014
Probably nowhere is the economic impact of shale energy development more dramatic than in the contrast between two neighboring states – Pennsylvania and New York. The former allows hydraulic fracturing in the energy-rich Marcellus shale belt that runs through much of the state, the latter doesn’t – even though the Marcellus continues into the Empire State and could provide a big jobs boost on its Southern Tier.
Indeed, while New York is not a top producing state, the oil and natural gas industry still is driving strong job creation and economic growth. In a PwC study, New York ranked 7th in the country in overall impact from oil and natural gas development.
Posted April 15, 2014
Last month a new study said more than $640 billion in energy infrastructure investments will be needed in the U.S. over the next two decades. Needed are pipelines, pumps and other infrastructure to keep pace with expected increases in domestic oil and natural gas production, the ICF International report said – much of it coming from energy reserves found in shale and other tight-rock formations through advanced hydraulic fracturing and horizontal drilling. ICF:
“Sufficient infrastructure goes hand in hand with well-functioning markets. Insufficient infrastructure can constrain market growth and strand supplies, potentially leading to increased price volatility and reduced economic activity.”
Posted April 14, 2014
Much is written about the macro-economic effects of public policy, including energy policy. America’s oil and natural gas industry supports 9.8 million jobs – 5.6 percent of total U.S. employment – and contributes $1.2 trillion to national GDP, according to a study by PwC. But what about the state impacts? Over the next couple of weeks we’ll push out a series of posts focusing on selected states to examine energy’s more localize economic effects, as well as other energy-related issues.
Let’s start with Kentucky, where energy means jobs.
Posted April 4, 2014
It’s hard to overstate the significance of the role that abundant, clean-burning natural gas had in bringing U.S. energy-related carbon dioxide emissions to a 20-year low in 2012. While the U.S. Energy Information Administration (EIA) expected 2013 emissions to inch up – mostly due to increased coal use in electrical generation – the projected level still would be more than 10 percent below where emissions were in 2005.
While lowering CO2 emissions is talked about in various circles, the fact is the United States already is doing it, thanks largely to natural gas – 60 percent of the U.S. total produced with advanced hydraulic fracturing and horizontal drilling.
Posted April 4, 2014
Opponents of Natural Gas Exports Have It All Wrong
WSJ MarketWatch (Furchtgott-Roth): Americans opposed to the export of U.S. natural gas give many reasons for their position. But almost all of them are wrong.
The problem is that people underestimate the amount of this country’s natural gas and the potential effect exports could have on the world market.
Russia has swallowed parts of Georgia and Ukraine. No one is proposing that America send soldiers to defend those countries, even though we guaranteed Ukraine’s sovereignty in 1994 under the Budapest Memorandum. Instead, we can help our allies by diminishing Russia’s economic power over them. And that power rests on oil and gas.
Posted April 2, 2014
The U.S. Energy Information Administration (EIA) reports that total net U.S. energy imports declined last year to their lowest level in more than 20 years – reflecting two energy positives for America: growth in domestic oil and natural gas production and increased exports of finished petroleum products. EIA:
Total U.S. net imports of energy, measured in terms of energy content, declined in 2013 to their lowest level in more than two decades. Growth in the production of oil and natural gas displaced imports and supported increased petroleum product exports, driving most of the decline. A large drop in energy imports together with a smaller increase in energy exports led to a 19% decrease in net energy imports from 2012 to 2013.Total energy imports declined faster—down 9% from 2012 to 2013—than in the previous year, while export growth slowed. Crude oil production grew 15%, about the same pace as in 2012, which led imports of crude oil to decrease by 12%, accounting for much of the overall decline in imports.
Posted March 31, 2014
A new study by ICF International makes the case for lifting trade restrictions that prevent the export of U.S. crude oil – consumer savings, job creation, domestic production growth and more:
- $5.8 billion in consumer savings a year, on average, between 2015 and 2035 due to falling costs of gasoline, heating oil and diesel fuel.
- Up to 300,000 additional jobs created in 2020, both due to higher oil production and U.S. consumers having more money to spend on goods and services.
- As much as a 500,000 barrels-per-day rise in domestic oil production in 2020.
- A $22 billion decrease in the U.S. trade deficit in 2020.
- Economic growth totaling as much as $38 billion in 2020, with an average GDP increase of up to $27 billion a year through 2035.
- An additional $15 billion to $17 billion invested in domestic exploration, development and production between 2015 and 2020.
- An increase of as much as $13.5 billion in federal, state and local government revenues in 2020.
Posted March 25, 2014
U.S. to Become Top LNG Exporter, Experts Say
Fuel Fix.com: HOUSTON — The U.S. is poised to become the top exporter of liquefied petroleum gas — more commonly known as propane or butane — within just a few years, officials with research analyst IHS said Monday.
By the 2020s, the U.S. likely will displace top LPG exporters including Qatar and the United Arab Emirates, said IHS Senior Director Walt Hart, during the IHS International LPG Seminar in Houston. The domestic supply of propane and butane is on the rise, produced along with the booming output of U.S. shale gas. But the domestic market for propane and butane is relatively flat, several experts said.
That’s not the case abroad. While most U.S. LPG exports go to Latin America today, a growing portion likely will go to Asia as demand there rises, in part due to its use as a fuel source for heating and cooking but also because of its role as a feedstock for the manufacture of petrochemicals.