Posted July 3, 2014
Forbes (David Blackmon) – As we prepare to celebrate our nation’s Declaration of Independence on Friday, it would also be appropriate to take a moment to celebrate those states who are currently leading our nation down the path towards energy independence. No issue facing America today is more important than where we will continue to access sources of abundant and affordable energy.
Energy heats and cools our homes and office buildings, fuels the automobiles that get us to work, facilitates the growing and transport of the food that sustains us, serves as the feed stock for thousands of products that make our daily lives more convenient and raise our standard of living. It is literally the life blood of our economy, and has been for more than 150 years.
Posted May 23, 2014
There have been some really interesting reactions to this week’s Los Angeles Times story on an upcoming federal report that the Times said will significantly lower the estimated amount of recoverable oil in California’s vast Monterey Shale play, believed to be the nation’s largest shale play.
Opponents of domestic oil production, which is helping drive an energy renaissance in the United States, rejoiced. One group said billions of barrels of oil just went poof! – like some sleight-of-hand trick. Someone else posted a fairly tone-deaf tweet, that California’s economic boom from shale production was being crushed. (“Let’s hear it for lost economic opportunity!”)
Others – folks who know the oil and natural gas industry and who understand how “recoverable” reserves are calculated – had different takes. You have to, especially when you think about all that’s been learned over the history of U.S. oil and natural gas development.
Posted May 16, 2014
Add the International Brotherhood of Electrical Workers (IBEW) to the list of American working men and women who want President Obama to approve the Keystone XL pipeline for construction. The Washington Examiner reports that IBEW President Edwin Hill sent letters to a number of Democratic senators, urging the pipeline’s construction. The Examiner quotes from Hill’s letter:
“At a time when job creation should be a top priority, the KXL pipeline project will put Americans back to work and have ripple benefits throughout the economy. … From pipe manufactured in Arkansas, to pump motors assembled in Ohio and transformers built in Pennsylvania, workers from all over the United States will benefit from the project. … Although America is slowly recovering from the worst recession since the Great Depression, unemployment rates remain high, especially in the construction industry.”
Americans in the construction trades look at the Keystone XL as more than a job – it’s a lifeline for people who’ve seen their work recover slowly from the recent recession.
Posted April 18, 2014
While Maryland isn’t among the country’s leading producers of oil and natural gas, the industry’s employment and economic impact in the state is significant. That impact, as measured by a PwC study:
- 75,400 jobs supported in 2011 (most recent year for which comprehensive data is available), accounting for 2.2 percent of the state’s total employment.
- Nearly 18,000 direct oil and natural gas industry jobs
Posted March 31, 2014
A new study by ICF International makes the case for lifting trade restrictions that prevent the export of U.S. crude oil – consumer savings, job creation, domestic production growth and more:
- $5.8 billion in consumer savings a year, on average, between 2015 and 2035 due to falling costs of gasoline, heating oil and diesel fuel.
- Up to 300,000 additional jobs created in 2020, both due to higher oil production and U.S. consumers having more money to spend on goods and services.
- As much as a 500,000 barrels-per-day rise in domestic oil production in 2020.
- A $22 billion decrease in the U.S. trade deficit in 2020.
- Economic growth totaling as much as $38 billion in 2020, with an average GDP increase of up to $27 billion a year through 2035.
- An additional $15 billion to $17 billion invested in domestic exploration, development and production between 2015 and 2020.
- An increase of as much as $13.5 billion in federal, state and local government revenues in 2020.
Posted March 24, 2014
U.S. Energy Boom May Signal New Export Era
Los Angeles Times: In a Louisiana swamp several miles upriver from the Gulf of Mexico, about 3,000 construction workers are building a massive industrial facility to liquefy natural gas, preparing for a new era when the U.S. will begin exporting energy around the globe.
The $12-billion project is one of the largest single industrial investments in the nation, part of a massive transformation of the energy sector that has led to a boom in drilling, transportation and refining from coast to coast.
Five years ago, the idea of exporting U.S. gas and oil was not only unheard of, but, in the case of most U.S. crude oil, illegal. At that time, the United States was facing a future of dwindling domestic supplies and vulnerability to foreign producers. It was anxiously building facilities to import natural gas, worried about ever-higher prices and building much of its foreign policy on the need to secure energy supplies.
But U.S. energy production has boomed with the technological revolution of hydraulic fracturing, known as fracking, and the ability to tap newly accessible massive reserves. The nation surpassed Russia in 2009 as the largest producer of natural gas and is expected to zip past Saudi Arabia next year to become the largest oil producer in the world.
Now, the U.S. energy industry is pushing for a new era of exports.
Posted March 19, 2014
This week’s central Gulf of Mexico lease auction, which saw oil and natural gas companies pledge more than $850 million in winning amounts, certainly helps support the United States’ status as an energy superpower. Developing more of our own oil and natural gas – and this week’s auction is a big step toward production – makes our country more energy secure, creates jobs and boosts the U.S. in global energy marketplace.
The potential benefits from future energy production from this week’s auctioned leases – jobs, economic growth and revenue for government – also suggest a couple of “what ifs”: What if the federal government included the Atlantic Outer Continental Shelf (OCS) in its next five-year leasing plan, the first step toward development in those areas? What if the U.S. opened more of the eastern Gulf to exploration and development?
Posted March 18, 2014
A few of the new good-news stories resulting from America’s oil and natural gas revolution:
Investing in Ohio Production …
The state’s geologist says Utica shale development has triggered $20 billion to $24 billion in spending investments and more will come, reports the Akron Beacon Journal’s online edition. The newspaper cites an unreleased report by Ohio state geologist Mike McCormac that says drilling companies have spent about $6 billion on drilling plus approximately $2 billion on leases. Investments in processing plants and pipelines are estimated at $12 billion to $16 billion.
Posted March 12, 2014
I had an interesting – and very timely – conversation with the first group of API Fellows last week at IHS CERA’s mega-energy conference in Houston. Interesting – because these highly motivated men and women surely will be part of the next generation of industry leaders Timely, because a new IHS study projects great industry opportunities in the future for minorities and women.
Posted March 10, 2014
A new report on the employment outlook for minorities and women in the oil and natural gas and petrochemical industries can be summed up in two words: tremendous opportunity. The study by consulting firm IHS projects that minorities will fill one-third of jobs in these industries by 2030 – up from one-quarter in 2010.