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.
Posted December 12, 2013
Shale Gas a Boon to Public Health
Breaking Energy (Dana Bohan): You’ve probably heard that the United States is experiencing an unprecedented energy boom that is transforming our economy, enhancing our energy security, and creating a manufacturing renaissance — all thanks to hydraulic fracturing and the development of America’s massive oil and natural gas resources. But what you probably haven’t heard is that shale development has an added bonus: it is rapidly reducing emissions of all kinds, which translates to massive public health benefits.
A new report by University of California-Berkeley climate scientist Richard Muller puts the health benefits of natural gas in the spotlight, concluding that “air pollution can be mitigated by the development and utilization of shale gas,” and because of this, “environmentalists who oppose the development of shale gas and fracking are making a tragic mistake.”
Read more: http://bit.ly/1gt6PnI
Posted December 9, 2013
Why Obama Should Thank the Oil and Natural Gas Industry
National Journal (Amy Harder): The oil and natural-gas industry probably won't ever get a thank-you card from President Obama, but he has a few big reasons to be grateful for the fossil-fuel boom.
America's vast resources of oil and natural gas have enabled Obama to move forward on aggressive policies, including tougher environmental rules and Iranian oil sanctions, which he would not have been able to do nearly as effectively without them.
The International Energy Agency predicts the U.S. will surpass Saudi Arabia as the world's biggest oil-producer in 2015; and, by the end of this year, the Energy Information Administration says we'll surpass Russia as the biggest natural-gas producer.
"I've joked before that for the last 30 years, our national energy policy has been implicitly predicated on a low-cost, trustable supply of natural gas," said Jason Grumet, president of the Bipartisan Policy Center, who advised Obama in his transition to the presidency in 2008. "It is incredibly fortunate that it showed up in time."
Read more: http://bit.ly/1aP7BDD
Posted December 5, 2013
America’s vast offshore energy reserves present an opportunity to improve our economy, increase our energy security and create tens of thousands of jobs. According to a new study, opening the U.S. Atlantic Outer Continental Shelf (OCS) to offshore oil and natural gas development could turn that opportunity into reality. API’s Director of Upstream Erik Milito and the National Ocean Industries Association’s Randall Luthi outlined the study for reporters today. Milito:
“Oil and natural gas production off our Atlantic coast is a potential gold mine. Developing oil and natural gas in the Atlantic could put hundreds of thousands of Americans to work, make us more energy secure, and bring in needed revenue for the government. But none of these benefits will appear unless the federal government follows pro-development energy policies.”
According to the study, oil and natural gas development in the Atlantic OCS between 2017 and 2035 could:
- Create nearly 280,000 new jobs along the East Coast and across the country.
- Result in an additional $195 billion in new private investment.
- Contribute up to $23.5 billion per year to the U.S. economy.
- Add 1.3 million barrels of oil equivalent per day to domestic energy production, which is about 70 percent of current output from the Gulf of Mexico.
- Generate $51 billion in new revenue for the government.
Posted December 4, 2013
A Pivotal Moment in U.S. Energy History
Global Energy Initiative (Jason Bordoff): We are at a transformational moment in energy history. Just a few years ago, all energy projections forecast increased imports, increased scarcity, and increased natural gas prices. Today, we’ve shifted from scarcity to abundance. U.S. oil production has increased by 2.5 million barrels per day (B/D) since 2010. This year, the United States overtook Saudi Arabia as the largest producer of liquid fuels (including crude oil, natural gas, and biofuels) in the world. U.S. oil imports are at their lowest level in 25 years and are projected to continue declining. The natural gas outlook is even more striking. New geological surveys and production data continue to surprise to the upside. And multi-billion-dollar terminals proposed not long ago to import natural gas are being flipped to export instead.
This transformation is not only a U.S. story. New technologies mean that what were once challenging sources of oil and gas can now be tapped economically from the oil sands in Canada (and potentially Venezuela), the ultra-deepwater “presalt” off the coast of Brazil, and many other parts of the world. Iraq, parts of Africa, and elsewhere are poised for sharp increases in production.
Read more: http://bit.ly/1gk7ms9