Posted August 13, 2015
It’s expected that EPA will submit its recommendation for new ozone standards to the White House Office of Management and Budget next week, with the final rule due by Oct. 1.
The final outcome will be momentous. EPA could – and should – leave the existing standards in place at 75 parts per billion (ppb). That would be remarkable, given the long rulemaking process and the agency’s current inclination to regulate more, not less.
Conversely, reducing the standards to 65 ppb or possibly lower would make it the costliest regulation ever, with the potential to halt economic expansion and infrastructure development dead in their tracks. Stricter standards could result in a $270 billion reduction in GDP per year on average from 2017 through 2040 and an annual loss of 2.9 million job equivalents, according to a study by NERA Economic Consulting.
Posted August 10, 2015
API has a new series of online ads that underscore potential risks from EPA’s proposal to impose stricter national ozone standards. The ads focus on potential impacts for individual states including Indiana, Colorado, Missouri, West Virginia and Virginia – which could see more than 38,600 jobs lost.
The key message in the ads is that an unnecessary tightening of ozone standards nationally could have dire effects locally, in each and every state.
Posted July 22, 2015
An informative event this week hosted by the U.S. Chamber’s Institute for 21st Century Energy, highlighting some potential real-world impacts of EPA’s proposal to tighten national ozone standards. Underscore “real-world impacts,” because the discussion centered on the potential havoc EPA’s proposal could unleash on transportation projects all over the country. “There’s going to be real people who’re going to be really upset,” said Karen A. Harbert, Institute president and CEO.
It’s important to see EPA’s ozone proposal in that light. The possible macro-economic harm that stricter ozone standards could bring – GDP reduction of $270 billion per year and $3.4 trillion from 2017 to 2040, according to one study – have been discussed here and elsewhere. But individual Americans may or may not relate to them, they’re so large.
The institute discussion and its new report, “Grinding To a Halt – Examining the Impacts of New Ozone Regulations on Key Transportation Projects” – help bring potential problems with stricter ozone standards to Americans’ doorsteps. Or, more specifically, to their daily commutes – which could get tougher if all kinds of transportation projects are terminated or delayed because they’re proposed in areas that would be in nonattainment with the new ozone standards.
Posted July 22, 2015
Our series highlighting the economic and jobs impact of energy in each of the 50 states continues today with New Jersey. Yesterday’s post looked at Texas and the series began with Virginia on June 29. All information covered in this series can be found online here, arranged on an interactive map of the United States. State-specific information across the country will be populated on this map as the series continues.As we can see with Texas, the energy impacts of the states individually combine to form energy’s national economic and jobs picture: 9.8 million jobs supported and $1.2 trillion in value added
Posted July 13, 2015
Another data point in the continuing public discussion of EPA’s plan to make the nation’s standards for ozone more restrictive, even as the existing standards have ozone levels falling 18 percent from 2000 to 2013 – and giving every indication levels will continue to fall. A new study by the Center for Regulatory Solutions (CRS) details how more restrictive ozone standards would impact where a lot of people live: Chicago and the state of Illinois.
According to the study, 21 counties in Illinois would be out of compliance or in “non-attainment” if EPA tightens ground-level standards from the existing 75 parts per billion (ppb) to 65 ppb, as it may do. (The fact is EPA is considering a national level as low as 60 ppb.)
Those 21 counties represent nearly 80 percent of Illinois’ gross domestic product, or $613.4 billion. The CRS study says Cook County and five other counties that surround Chicago would be “ground zero” for the most dramatic ozone reductions, potentially affecting 65 percent of the state’s population, nearly 70 percent of its employment and 73 percent of its GDP.
Posted July 6, 2015
USA Today (editorial) – Fracking — the practice of cracking open underground oil and gas formations with water, sand and chemicals — has rescued U.S. energy production from a dangerous decline. Any debate about banning it should take a hard look at what that would cost the nation and at facts that aren't always part of the discussion.
Those facts are spelled out in a recent report from the Environmental Protection Agency on fracking and groundwater. One of the harshest charges against fracking, often leveled with apocalyptic intensity by its foes, is that it indiscriminately contaminates vital drinking water supplies.
The EPA's timely report essentially said that's overblown.
Posted June 18, 2015
SNL – Accusing OPEC of manipulating crude oil prices, the founder, chairman and CEO of Bakken Shale pioneer Continental Resources Inc. on June 16 detailed arguments for lifting the U.S. ban on oil exports, saying exports would rejuvenate a flat-lining oil industry while lowering domestic gasoline prices.
Speaking to a Washington, D.C.-centric crowd at the U.S. Energy Information Administration's 2015 Energy Conference in Washington, Harold Hamm said the combination of North Dakota's Bakken Shale and Texas' Eagle Ford Shale and "new" Permian shales — "Cowboystan" — provides the nation with more than enough production and reserves to permit exporting light, sweet crude oil.
"Horizontal drilling has transformed" oil and gas production in the U.S. to where the country "reaches energy independence" by 2020 and "we can get to the point where we can produce 20 million barrels per day," more than double what the U.S. has produced in recent months, according to the EIA.
"Only in America" could Cowboystan happen, Hamm said, because of the "three Rs: rigs, rednecks and royalties."
Posted June 16, 2015
Platts – Stabilizing crude oil prices and falling drilling costs could soon boost US production by hundreds of thousands of barrels per day, an upstream oil and gas economist with the US Energy Information Administration, said Monday.
"We're starting to see a turn in production," Grant Nulle said during a panel discussion at EIA's annual conference. "Conditions are conducive for this to happen."
While recent EIA data has shown production declines at existing wells have outpaced production from new wells, a rebound is likely as operators focus on the most efficient wells and look to increase well completions amid falling costs and continued availability of capital, Nulle said.
In a recent survey of 85,000 wells drilled between 2012 and 2014, initial production rates have roughly doubled, he said.
Posted June 12, 2015
For some time we’ve been talking about EPA’s bid to make the nation’s ozone standards more restrictive.
We’ve expressed puzzlement that the agency wants to impose more stringent standards when the existing ones are working – lowering ozone levels 18 percent between 2000 and 2013 according to EPA’s own data. We’ve noted the lack of scientific and public health justification for stricter standards while highlighting potential risks to the economy. If this week’s House Energy and Commerce subcommittee hearing on ozone was any measure, the issue has the attention of many in Congress.
Top EPA official Janet McCabe was peppered with questions about economic impacts, the arguable wisdom of stricter standards when areas like Los Angeles don’t meet existing standards and EPA’s push for more stringent standards before the current standards are fully implemented in the states.
Posted April 14, 2015
The National Interest (James Jay Carafano): Increasing American production and export of energy is a win-win-win proposition. It would enhance our national security, make international energy markets more free, and address environmental issues realistically. The next president should lead the campaign for an American energy export agenda. In the meantime, the present Congress can do much to prepare for the march.
The acme of presidential leadership is crafting policies that make the nation safe, free, and prosperous. Satisfying all three priorities is often the Oval Office's greatest challenge. It is like single-handedly trying to get squabbling triplets into their car seats. Yet, the confluence of geopolitics, America's energy abundance, and economic and environmental realities offers an almost unprecedented opportunity to do this successfully.