Posted January 15, 2014
America’s Energy Boom
Real Clear Politics: WASHINGTON -- For decades, Americans have talked about "energy policy" as if it were the political equivalent of a migraine. The phrase connoted pain -- in ever-rising gas prices, costly government schemes and dependence on imports from precarious Middle East regimes.
But recent developments involving energy production and technology have been so astonishing that they should puncture this long-running pessimism. The amazing fact is that on nearly every front, America's energy prospects have improved in ways that would have been unimaginable just a decade ago.
In the energy marketplace, President Obama's vision of an "all of the above" strategy is actually happening. Production of oil, gas and alternative energy is rising, even as demand begins falling for these energy sources -- all thanks to new technology. The market forces driving these changes are so powerful that even politicians probably can't screw them up.
Read more: http://bit.ly/1b47dCg
Posted January 15, 2014
Some eye-popping numbers from a new report by API and the Association of Oil Pipe Lines:
Liquid pipeline operators delivered 14.1 billion barrels of crude oil and petroleum products by interstate pipeline in 2012
Liquid pipeline operators operated 185,599 miles of pipeline in 2012 including 57,051 miles of crude oil, 64,024 miles of petroleum product, and 59,853 miles of natural gas liquid pipelines
Liquid pipeline operators spent more than $1.6 billion on integrity management in 2012 evaluating, inspecting and maintaining their pipeline infrastructure
Liquid pipeline releases are down 62% from 2001 to 2012
Barrels released from liquid pipelines are down 47% from 2001 to 2012
Corrosion as a cause of releases from liquid pipelines is down 79% from 2001 to 2012
Third-party caused damage to liquid pipelines is down 78% from 2001 to 2012
As API Pipeline Director Peter Lidiak put it:
“Pipelines are a vital part of this nation’s infrastructure and will be critical to creating jobs, growing our nation’s economy and securing our bright energy future… Statistically, pipelines have an almost 100 percent safety record and reaching a perfect record of safety.”
Posted January 10, 2014
America is experiencing an energy renaissance thanks to abundant domestic oil and natural gas, much of it developed from shale and other tight-rock formations through advanced hydraulic fracturing and horizontal drilling. As API President and CEO Jack Gerard outlined earlier this week, energy is at the heart of freedom and opportunity, and U.S. energy wealth could be the driver of a new era of American prosperity:
“Energy is fundamental to our society, and thanks to American innovation and entrepreneurial spirit, our nation stands among the world’s leaders in energy production and is poised to be THE leader if we get American energy policy right. The question before us today is whether we have the vision and wisdom to take full advantage of our vast energy resources. The energy policy choices we make today are among the most important and far reaching policy decisions we will make in the 21st century. We have a once in a lifetime opportunity to reshape, realign and reorder the world’s energy market and improve domestic prosperity to an unprecedented degree. But only if we get our nation’s energy policy right today.”
Posted January 8, 2014
Two big stories have caught our attention the past two days. First, America’s trade deficit has sunk to a four-year low thanks to falling U.S. imports and increasing exports:
- America’s Trade Deficit is Shrinking. Thank Fracking. http://wapo.st/1cB2eMg
- U.S. Growth Picture Brightens as Exports Hit Record: http://on.wsj.com/K71y72
- Trade Deficit Falls to 4-Year Low: http://lat.ms/1cP1AYf
- How the Booming Oil Patch Helps U.S. Trade: http://buswk.co/1lBmfXY
And second, the growing number of voices calling for ending the decades-old ban on U.S. crude oil exports:
- Murkowski Joins Growing Chorus Calling to Lift Ban on Crude-Oil Exports: http://bit.ly/1eHRzze
- Is Free Trade in Energy Finally on the Horizon? http://bit.ly/1cZzu0W
- U.S. Chamber CEO – End Ban on Crude-Oil Exports: http://bit.ly/1dgBjZ3
Posted December 30, 2013
Vaclav Smil’s Graph of the Year: The Natural Gas Boom
Washington Post: "[There are] too many choices possible, but here is one epoch-making trend: as the post-2008 rise of hydraulic fracturing drove U.S. natural gas prices down and increased the supply (in 2013 the U.S. will be again the world’s largest natural gas producer) oil and gas prices, traditionally moving in tandem, have diverged significantly. History is being made."
Posted December 30, 2013
As 2013 nears its end, noting some of the year's most popular Energy Tomorrow Blog posts:
Jobs = Job 1
PwC’s latest detailing of the economic impacts of oil and natural gas activity ranked the highest in readership. And why not: It’s a great story. PwC found that in 2011, the last year for which complete data is available, the industry recorded these key numbers:
- 9.8 million full- and part-time jobs supported, directly and indirectly.
- $1.2 trillion added to the economy, accounting for 8 percent of the national total.
- Nearly $600 billion contributed in associated labor income – including wages, salaries, benefits and proprietors’ income.
Posted December 23, 2013
State Already Taxes Oil in many Ways
San Francisco Chronicle (Catherine Reheis-Boyd): Tom Steyer, the San Francisco billionaire environmentalist, has launched a campaign to increase taxes on energy production in California. He thinks oil companies are allowed to "siphon California resources without providing any meaningful return to Californians."
Beginning an education campaign on inaccurate claims doesn't bode well for the quality of the educational experience.
To claim Californians receive no meaningful return for the oil we produce is puzzling. Oil companies in California generate $6 billion in tax revenues for state and local governments, according to an analysis by Purvin & Gertz in 2011. While it's true California does not have an oil severance tax per se, California taxes oil companies and oil production in a variety of other ways.
Read more: http://bit.ly/1kzQ4aP
Posted December 20, 2013
Merry Christmas, Texas, From Your Oil and Gas Industry
Forbes: “Texas has recovered 100 percent of the jobs lost during the recession and added 597,000 beyond the previous peak in August 2008.” – Texas State Comptroller Susan Combs
On Thursday, December 12, the Texas Comptroller’s Office released a report detailing the current state of the state’s budget. The report was titled “Tracking the Texas Economy – Key Texas Economic Indicators”. But given the content of the report, a better title might have been:
“Merry Christmas, Texas, From Your Oil and Natural Gas Industry”
According to the Comptroller, the state ended its 2012-2013 biennium with a surplus of more than $2.6 billion, almost three times the previously projected amount of $964 million. The reason why? Because the Texas oil and natural gas industry’s tax payments were more than $2 billion more than anticipated.
Read more: http://onforb.es/1i8lWU5
Posted December 19, 2013
Mexico’s Energy Reform Will Benefit U.S.
USA Today (Peter Schechter and Jason Marczak): Last Thursday, Mexico's Congress passed the final hurdle to approve amendments to its constitution that herald a deep, positive change for the country. With all the bad news coming out of most everywhere else in the world, it is a relief to see a part of the western world where politics remain constructive.
The energy reform proposal will bring dramatic advances to Mexico's energy market, allowing private investment in the country's oil and gas sector for the first time since former President Lázaro Cárdenas nationalized oil in 1938. The reform will have profound economic implications for Mexico and the international energy supply equation.
It is also a coup for President Enrique Peña Nieto,47, who successfully built a coalition with his main political rivals to pass the reform. In a move reminiscent of Nixon's trip to China, this youthful president of the same party that 75 years ago nationalized Mexico's natural resources accomplished a reform previously considered the third rail of Mexican politics. Indeed, the Peña Nieto administration is able to provide the United States and Europe with a Harvard Case Study on leadership, partnership and putting citizenship before partisanship.
Read more: http://usat.ly/19VwttE
Posted December 13, 2013
Last week we posted on a new study showing tremendous economic and energy benefits to opening the U.S. Atlantic Outer Continental Shelf (OCS) to offshore oil and natural gas development. The folks at the National Ocean Industries Association have a video out that captures the study’s highlights in a little over a minute.