The People of America's Oil and Natural Gas Indusry

Energy Tomorrow Blog

encana  analysis  shale-energy  oil-and-natural-gas-development  unconventional-oil  unconventional-gas  canada  hydraulic-fracturing  horizontal-drilling  economic-growth  investments  technology-innovation 

Mark Green

Mark Green
Posted May 12, 2015

Encana President and CEO Doug Suttles participated in the U.S. Chamber of Commerce’s CEO Leadership Series last week with a luncheon address and a Q&A session with Linda Harbert of the Institute for 21st Century Energy. Highlights of the conversation below. Suttles joined Alberta-based Encana as president and CEO in June 2013. He has 30 years of oil and natural gas industry experience in various engineering and leadership roles. Before joining Encana, Suttles held a number of leadership posts with BP, including chief operating officer of BP Exploration & Production and BP Alaska president.  

Q: You opened your talk by saying I’m a North American energy company. … Can you shed a little light on the differences and similarities between operating in Canada and the U.S.?

Suttles: They’re not as big as many people would think. First of all, in the places we operate – Colorado, Wyoming, New Mexico, Texas, Louisiana and Mississippi, and then Alberta and British Columbia – these are all natural resource states, and they understand that and I think the people and political leaders understand the importance, too. Both countries have high environmental expectations.

Probably the biggest difference you’d really see between them is the remoteness of operations, which creates a unique challenge in Canada. Many of our operations are away from large towns and cities … But you have an environment where I think people understand the benefits of our industry. They promote the industry, they support it.

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news  investments  pension-plans  epa34  gasoline-prices  energy-exports  oil-and-natural-gas-production 

Mark Green

Mark Green
Posted April 29, 2015

Rigzone: For every $1 that public pension funds allocated to oil and gas assets in 2005, investors saw a return of 130 percent in 2013, about double their returns on other investments, according to a new study from the American Petroleum Institute and Sonecon LLC.

“The lesson, frankly, from this analysis is that pension plans would be in better shape if they increased the share they invest in oil and gas,” said Robert Shapiro, a co-author of the report, said during a conference call with reporters. 

Shapiro found that the funds invested an average of 4 percent of their assets in oil and gas, which yielded 8 percent of the returns. The study reviewed the returns of the two largest funds — those owned by public school employees and state workers in every case — for each of 17 states, which included California, Florida, New Mexico and West Virginia for the eight-year period from 2005 to 2013.

“All of these pension plans have been under serious economic stress since 2008. Thirty-five states have enacted changes that will change benefits,” Shaipro said, adding that when the plans’ returns are higher, there is less pressure on them to reduce benefits.

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oil-and-natural-gas-industry-earnings  economic-benefits  stock-ownership  pension-funds  mutual-funds  iras  401k  retirement-funds  investments 

Mark Green

Mark Green
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.

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shale-energy  marcellus-natural-gas  investments  income  hydraulic-fracturing  horizontal-drilling 

Mark Green

Mark Green
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.

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crude-oil  energy-exports  economic-benefits  gasoline-prices  job-creation  manufacturing  investments  refineries 

Mark Green

Mark Green
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.

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lifo  tax-increases  oil-and-natural-gas-production  investments  manufacturing 

Mark Green

Mark Green
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.

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liquefied-natural-gas  lng34  energy-exports  infrastructure  investments  trade 

Mark Green

Mark Green
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.

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energy-access  energy-economy  energy-future  hydraulic-fracturing  investments  job-creation  keystone-xl-pipeline  shale-benefits 

Mark Green

Mark Green
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.

Energy Bounty

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.

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intangible-drilling-costs  investments  taxes 

Mark Green

Mark Green
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.

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access  investments  natural-gas  offshore-drilling  oil34 

Mark Green

Mark Green
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 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.”

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.

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