Posted August 18, 2014
Albuquerque Journal (Former Sen. Pete Domenici): America has been handed a great gift, the gift of technological breakthroughs like horizontal drilling and hydraulic fracturing for oils and natural gas.
This gift, if we handle it properly, has the potential not only to free our nation from being hostage to other nations, but to allow Europe and other regions to free themselves from the tyranny of dependence on Russian sources of oil and gas.
Think how much differently our allies in Europe would behave in this time of crisis if they had the infrastructure, and the access, to handle natural gas and oil from America, Canada and Mexico.
New Mexico has played an important, I would say critical, role in this potential geopolitical and economic revolution.
Posted August 15, 2014
Every county in Ohio would be in nonattainment or non-compliance with an ozone standard of 60 parts per billion (ppb), which EPA is considering to replace the current 75 ppb standard. Counties in red are those with ozone monitors located in them; those in orange are unmonitored areas that could be expected to violate the 60 ppb standard, based on spatial interpolation.
The potential economic costs to Ohio would be significant. The state could see $204.3 billion in gross state product loss from 2017 to 2040 and 218,415 lost jobs or job equivalents per year. On a practical level, manufacturers wouldn’t be able to expand to counties in red or orange unless other businesses shut down, and federal highway funds could be frozen.
Posted August 14, 2014
Earlier this month the National Association of Manufacturers issued a report measuring the potential impacts of a new, stricter ground-level ozone air quality standard that’s being proposed by EPA. The estimated national results are economically devastating: reduction of U.S. GDP by $270 billion per year, 2.9 million fewer job equivalents per year on average through 2040 and potentially increased natural gas and electricity costs for manufacturers and households.
The picture is the same on a state-by-state basis. Over the next few days we’ll highlight some of the individual state impacts from the report, starting with North Carolina.
Posted August 11, 2014
API has put together a new infographic that captures the breadth of this administration’s policies – especially an ongoing regulatory push from EPA – that could slow progress that’s being built on America’s energy revolution. (Click here to pull up the PDF.)
Here’s the thrust: The administration’s policies and regulatory efforts are hindering needed energy and economic progress. It is delaying infrastructure, such as pending liquefied natural gas export projects and the Keystone XL pipeline. It is sustaining the broken Renewable Fuel Standard and its ethanol mandates, which could negatively affect consumers and the larger economy. It’s threatening new regulation that would needlessly impact the refining sector, while advancing a stricter ozone standard that would put virtually the entire country out of compliance.
Posted August 4, 2014
USA Today: The U.S. energy industry is booming. As new technologies make oil easier and more affordable to extract, the United States is poised to become the world's leading oil producer as soon as 2015, according to a 2013 study by the International Energy Agency. At the same time, proven oil reserves — the estimated quantities of oil that can be extracted under existing conditions — have also risen. In 2012, the U.S. had more than 30.5 billion barrels of proven oil reserves, up 15% from the year before.
Ten states accounted for nearly 80% of the U.S. proven oil reserves as of the end of 2012. Texas was the state with the most proven reserves, totaling more than 9.6 billion barrels of oil, or close to a third of all U.S. reserves. Based on the U.S. Energy Information Agency (EIA) data on proved oil reserves, these are the most oil-rich states in the country.
Unsurprisingly, the states with the highest totals of proven reserves are also among the states producing most oil. Of the 10 most oil-rich states, all but one were also among the states with the most production activity as of 2013. Together, these 10 states accounted for more than 2 billion of the 2.7 billion barrels of oil produced last year. Offshore drilling, not attributable to any state, accounted for much of the production not coming from these states.
Posted July 31, 2014
A couple of new warning lights concerning EPA’s regulatory approach in proposed standards for power sector emissions as well as the anticipated standard for ozone. In both cases the agency appears poised to regulate without thoroughly reckoning potential impacts that could harm the economy and individual consumers.
First, there’s EPA’s effort to regulate power sector emissions – with carbon pollution guidelines proposed for existing power plants, on top of the already proposed guidelines for new electric utility generating units.
Howard Feldman, API’s director of regulatory and scientific affairs, testified at EPA field hearings this week that the agency’s proposals could result in higher energy costs, impacting the oil and natural gas industry’s international competitiveness and negatively affecting the broader economy. Feldman also warned that the proposals could set a precedent for EPA incursion into management of the power sector that’s beyond its authority under the Clean Air Act.
Posted June 30, 2014
Washington Post Editorial: Quietly but wisely, the Commerce Department has decided to allow the first exports of U.S. crude oil since Congress imposed a ban on such sales (except to Canada) in the 1970s. To be sure, the agency’s ruling amounts to redefining crude in a way that applies only to a form of ultralight oil that U.S. refineries are ill-equipped to process. The executive branch couldn’t do much more than that to expand crude exports without congressional permission. Still, Commerce’s move is a step in the right direction because resuming oil sales abroad could help the U.S. economy reap the full fruits of the shale revolution that has propelled this country back into the top ranks of global oil and gas production.
The origins of the ban lie in the long-gone political and economic issues of the Nixon era. Specifically, the United States banned oil exports in response to the declining domestic production and Middle East supply shocks of that time, which, together with the then-existing system of U.S. price controls, made it seem rational to keep U.S.-produced oil at home rather than let it flow to the highest bidder on the world market. The world has changed dramatically since then; with U.S. production booming, this country is in a position to move the world market. Yet some still defend the export ban on the grounds that it holds down the price of crude to U.S. refineries and, by extension, the price of gasoline at U.S. pumps.
A new report by IHS Global explains why that thinking is outmoded.
Posted June 4, 2014
Posted May 15, 2014
CNBC (Spencer Abraham/Bill Richardson): Once again the world is looking for America's leadership in unsettled times. Our diplomats have limited options to combat Russia's annexation of Crimea, but they can take greater advantage of a new tool in their toolbox that no administration has had for generations — U.S. energy abundance. American energy exports will not only create economic opportunities here at home but will provide strategic geopolitical advantages abroad.
The crisis involving Ukraine and Russia highlights the need for American energy leadership. Russia remains the world's largest exporter of natural gas, supplying 30 percent of Europe's imports. Countries on Russia's periphery, many nearly completely dependent on Russian supply, pay exorbitant oil linked prices. Many are NATO allies.
Posted April 28, 2014