Posted October 21, 2014
Sonecon’s updated look at ownership of the U.S. oil and natural gas industry shows that the benefits of a successful, rigorous industry sector continue to accrue to a broad range of Americans – who are the industry’s true owners. Here’s what we mean by broad:
- Public and private pension and retirements plans, including 401(k)s and IRAs, hold 46.8 percent of all shares of U.S. oil and natural gas companies in 2014.
- Asset management companies, including mutual funds, hold 24.7 percent of oil and natural gas shares.
- Individual investors hold 18.7 percent of all oil and natural gas company shares.
Combined, that’s 97 percent of all oil and natural gas company stock – held by millions of Americans across the country.
Posted October 15, 2014
Natural gas production in the Marcellus Shale continues to surge – and with it, industry spending on construction and maintenance, according to a new study.
The latest drilling productivity report from the U.S. Energy Information Administration (EIA) projects Marcellus natural gas output will hit 15,828 million cubic feet per day (mcf/d) or about 37.1 percent of production from the major U.S. shale plays. EIA expects Marcellus output will top 16,000 mcf/d in November.
The production gains are reflected in industry spending on workers in construction and maintenance from 2008 to 2014 – the subject of the new study by the Oil and Natural Gas Industry Labor-Management Committee. The study showed spending grew more than 60 percent between 2012 and 2013, reaching $5 billion, resulting in a 40 percent increase in jobs in eight trades (union and non-union members included). Another $6.5 billion already is committed for 2014, the study reports.
Posted October 14, 2014
A new study by the Aspen Institute joins a series of analyses concluding that one benefit from exporting U.S. crude oil would be lower gasoline prices here at home. Aspen’s projected reduction of between 3 and 9 cents per gallon parallels findings in previous major studies by ICF International (3.8 cents per gallon), IHS (8 cents) and Brookings/NERA (7 to 12 cents) that exports would lower pump prices.
Aspen and the other studies project other benefits from exporting crude oil, including broad job creation, economic growth and increased domestic energy production. Yet the solidifying consensus that consumers also would benefit is critically important as the public policy debate on oil exports continues.
Posted June 4, 2014
If you run a business that sells things produced from raw materials – manufacturers, retailers, wholesale distributors and car and equipment dealers and other industries – chances are good you’re familiar with “LIFO” accounting. The IRS first approved the “last-in, first-out” method for use by taxpayers with inventories in the 1930s. Repealing LIFO, as some in Congress are proposing, could impact the more than 30 percent of U.S. companies, large and small, that use it, as well as the larger economy.
That’s the message a bipartisan group of 113 U.S. House members conveyed in a recent letter to Ways & Means Committee Chairman Dave Camp, who has proposed LIFO repeal as part of his larger tax reform package.
Posted March 12, 2014
In a post last week we discussed the way the Ukrainian crisis is focusing a number of U.S. leaders on the potential foreign policy impacts of surging U.S. energy production. With its vast natural gas reserves, the U.S. could be a leader in the global market for liquefied natural gas (LNG), if we took the steps to make that happen – starting with government approval of permits to build LNG export terminals.
Unfortunately, that process is slow. Although the Energy Department has approved six applications since 2011, more than 20 still are pending. And the U.S. isn’t the only country eyeing the global LNG market. More than 60 non-U.S. LNG export projects are planned or under construction. In a number of ways, it’s a race to the rewards stemming from natural gas abundance.
Posted November 26, 2013
Here’s wishing everyone a happy Thanksgiving while offering a few of the reasons we can all feel blessed because of America’s energy present and future – which the men and women of the oil and natural gas industry help deliver.
Let’s start with the fact America is enjoying a renaissance in home-grown energy production, thanks to advances in technologies and techniques, such as hydraulic fracturing and horizontal drilling. Last month these played a big role in helping domestic oil output to exceed imports for the first time since 1995. Because of fracking and other technologies, more of America’s vast oiland natural gas reserves can be developed to generate fuels that provide about 62 percent of the energy Americans currently use. That’s energy that makes our lives possible – that will power our lifestyles and economy in the future, according to government projections.
Posted September 18, 2013
Check out the video below of a Fox Business Network interview with API President and CEO Jack Gerard on the tax reform climate in Washington that has some talking about raising taxes on energy companies. The ability to recover the costs associated with finding oil and natural gas in a timely way through the Intangible Drilling Costs provision is especially critical to continuing investments in energy development, Gerard says.
Posted June 5, 2013
Ernst & Young has a new study detailing $185.6 billion in total capital spending by oil and natural gas companies last year – the largest in the history of the firm’s oil and natural gas reserves study. Marcela Donadio of Ernst & Young:
The study of U.S. upstream (pre-refinery stage) capital spending by the 50 largest companies (based on 2012 end-of-year oil and natural gas reserve estimates) found a 20 percent increase compared to 2011. Ernst & Young said the increase was largely due to increased tight oil and liquids activity. That refers to development in tight-rock formations, made possible by hydraulic fracturing and horizontal drilling.
“The increased exploration and development spend we’re seeing in this year’s study speaks to the incredible opportunity unfolding in tight oil from shale formations and the high cost of developing these unconventional resources.”
Posted February 21, 2013
While the White House talks again about raising taxes on oil and natural gas companies, let’s look at a chart that captures the starkly different outcomes – in terms of revenue for government – from two policy paths: higher energy taxes vs. increased energy development:
Posted February 11, 2013
Let’s talk oil and natural gas company earnings. Today, three charts that illustrate some of the things we’ve been saying for some time:
- Earnings equal return on investment, which is great news for millions of Americans – the true owners of these companies. (More here from Ken P. Cohen’s Perspectives blog.)
- Oil and natural gas companies are investing in America in a way unsurpassed by other industries.
- America’s oil and natural gas companies pay their fair share – and more – in taxes.