The People of America's Oil and Natural Gas Indusry

Energy Tomorrow Blog

keystone-xl-pipeline  energy-security  jobs  american-energy  economy  oil-sands 

Mary Leshper

Mary Schaper
Posted July 8, 2014

The Keystone XL Pipeline has been studied, and studied, and studied, in fact if the permit application were a person, it would have just graduated kindergarten. However, after nearly six years of studies which show positive benefits to our economy and energy security with no significant environmental impacts  – politics are still trumping good policy.

The Final Environmental Impact Statement released by the State Department earlier this year found the project would deliver 830,000 barrels of oil per day from Canada and the U.S. Bakken region to U.S. refineries, create 42,100 jobs during its construction phase and provide $3.4 billion in additional revenue to U.S. GDP.

Read More

alternative-energy  economy  energy-security  jobs  fracking  policy 

Mary Leshper

Mary Schaper
Posted July 7, 2014

Promising news last week – the U.S. will remain the world’s largest oil producer this year, maintaining the top spot now and well into the future thanks to shale development, Bank of America says.

U.S. production of crude oil, along with liquids separated from natural gas, surpassed all other countries this year with daily output exceeding 11 million barrels in the first quarter, the bank said in its report.

Read More

american-energy  keystone-xl-pipeline  fracking  hydraullic-fracturing  economy  jobs  global-energy  lng-exports 

Mary Leshper

Mary Schaper
Posted June 26, 2014

Washington Post: Even Democrats who prefer to develop alternate energy sources before expanding the use of fossil fuels say they want the Keystone XL pipeline built.

 

The new Pew "Political Typology" report shows huge majorities of all four Democratic-leaning groups support the development of wind, solar and hydrogen alternatives to oil, coal and natural gas. But of those same four groups, the Keystone XL pipeline is still overwhelmingly popular in three of them.

 

Among "hard-pressed skeptics," "next generation left" and "faith and family left," support for Keystone is two-to-one. So even as a group like the "next generation left" group supports alternate energy over fossil fuels 83-11, it still backs Keystone 62-28.

Read More

keystone-xl-pipeline  environment  economy  energy-security  jobs  policy  pipeline-safety 

Mark Green

Mark Green
Posted June 25, 2014

A year ago President Obama clarified his position on the Keystone XL pipeline, saying that for him to approve the project it would need to meet two tests – that KXL would be in the national interest and would not “significantly exacerbate the problem of carbon pollution.”

The second point first. The environmental test has been passed – five times, in fact. The U.S. State Department’s fifth environmental assessment – which examined the Keystone XL’s construction, operation and the impact of increased oil sands development as a result of the pipeline – concluded that the project would have no effect on oil sands production and no significant effect on the environment.

Read More

american-energy  jobs  economy  energy-security  hydraulic-fracturing  fracking  innovation  technology 

Mary Leshper

Mary Schaper
Posted June 23, 2014

CNBC (U.S. Rep. Fred Upton): Millions of vacationing families will be hitting the highways this summer where, for the fourth year in a row, they'll face gas prices above $3.50 a gallon. Prices are already closing in on $4 a gallon, and the political upheaval in Iraq threatens to push them even higher. Costly fill-ups may seem like the new normal, but they do not have to be. The right energy policies can help ease future pain at the pump, as well as on the monthly electric bill, and for goods on store shelves. Even better, these policies can create new jobs in the process. Indeed, we can unleash the benefits of the American energy superpower — but only if the Obama administration embraces our potential.

Read More

american-energy  hydraulic-fracturing  fracking  global-energy  jobs 

Mary Leshper

Mary Schaper
Posted June 13, 2014

Business Insider: Brent oil futures briefly began approaching $115 this morning, the highest level in nine months, as fears that Iraq is disintegrating spooked markets.

Crude is now up about 4% on the week. When prices stay at this level for this long, U.S. gas prices start creeping up. 

But what about all the oil the U.S. has been producing the last few years? Shouldn't we be insulated from whatever oil is doing?

Unfortunately, the answer is no. Gasoline prices are set on the global market, and refiners everywhere ship product to wherever they can get the best quote. So for better or worse, raw gasoline prices mostly move in lockstep around the world. The primary contract for gasoline is called RBOB. 

Read More

american-energy  economy  jobs  energy-security  imports  growth 

Mary Leshper

Mary Schaper
Posted June 12, 2014

Bloomberg News: U.S. fuel imports fell to a 15-year seasonal low as refineries processed increasing domestic crude output, moving the nation closer to energy independence.

Deliveries slid 653,000 barrels a day to 1.68 million in the week ended June 6, the fewest for the period since 1999, the Energy Information Administration data showed today. The 28 percent drop was the biggest decline since the week ended June 18, 2013. Fuel imports peaked at 4.97 million barrels a day in October 2005.

“There’s a change in the dynamic,” said Phil Flynn, a senior market analyst at Price Futures Group in Chicago. “We’re not going to stop importing products but the overall number should move lower. We’re turning into a hub where products are both imported and exported based on price.”

Shipments to the U.S. from abroad have dropped as the shale boom provided refiners with an ample supply of cheaper domestic crude to make fuel. West Texas Intermediate, the U.S. benchmark crude, has traded at an average discount of $12 to Brent oil from the North Sea over the past four years. WTI traded at an average premium of more than $1 to the European grade from 1988 to 2008.

Read More

american-energy  energy-security  economy  jobs  global-energy  global-markets 

Mary Leshper

Mary Schaper
Posted June 9, 2014

Wall Street Journal (Joseph Nye): HOUSTON — The United States produced enough energy to satisfy 84 percent of its needs in 2013, a rapid climb from its historic low in 2005, according to a report from the U.S. Energy Information Administration.

The nation produced 81.7 quadrillion British thermal units of energy last year and consumed 97.5 quadrillion, the highest ratio since 1987. The nation’s energy output rose 18 percent from 2005 to 2013, as a surge in oil and gas production offset declines in coal. Meanwhile, its total energy used fell 2.7 percent during that period.

The nation’s ability to meet its own energy needs hit an all-time low in 2005, when the amount of energy produced domestically met just 69 percent of demand. The last time the United States’ energy production exceeded its energy use was in the 1950s, according to the Energy Information Administration, an agency of the Energy Department.

Read More

economy  energy-security  environment  jobs  fracking  alaska  crude-oil 

Mary Leshper

Mary Schaper
Posted June 6, 2014

UPI: WASHINGTON --Strong growth in onshore U.S. oil and gas production means fewer problems from hurricanes, the analytical arm of the U.S. Energy Department said Wednesday.

Sunday marked the start of the Atlantic hurricane season. As of Wednesday, there are no cyclones reported in the Atlantic Ocean, though Tropical Storm Boris is headed north from the Yucatan Peninsula of Mexico at a rate of 5 miles per hour.

Though offshore oil and gas installations may be shut in by any major storm in the Atlantic, EIA said inland production could make up for any shortfall.

Read More

american-energy  manufacturing  jobs  hydraulic-fracturing  fracking  lng-exports  alaska  north-carolina 

Mary Leshper

Mary Schaper
Posted June 5, 2014

The Wall Street Journal (ROBERT PROFUSEK): Since the 1970s, multinational companies regularly relocated manufacturing outside the U.S., chasing what GE’s Jeff Immelt coined “labor arbitrage,” and the conventional wisdom was that U.S. manufacturing was heading to an inexorable death. The conventional wisdom has, however, proven untrue, as so often is the case.

Some of the reasons for the rebirth of manufacturing in the U.S. were the inevitable consequences of the rapid rise in industrialization in emerging market countries–think of the pollution and daily rolling brownouts in India, labor unrest and increased wage and work rule demands in China and unpredictable legal systems in many emerging market countries. But the fundamental factor driving manufacturing back to the U.S. is technology–computers and robots have further eroded the labor arbitrage, and the U.S. is the undeniable global leader in technology and innovation. At the same time, the U.S. is in the midst of an energy boom, itself technology-enabled, producing an enormous cost and reliability advantages. While this particular advantage can be expected to diminish over time, it is real and the catch-up time is likely to be long, as evidenced by China’s inability to date to exploit its own shale gas reserves cost-effectively.

Read More