The People of America's Oil and Natural Gas Indusry

Energy Tomorrow Blog

american-energy  policy  exports  lng34  keystone-xl-pipeline  fracking 

Mary Leshper

Mary Schaper
Posted February 24, 2015

Houston Chronicle (excerpt): Putin tips his hand with this dedicated focus on fracking, revealing just how much of a threat alternative energy sources pose to his control in Europe. "Energy is the most effective weapon today of the Russian Federation," Victor Ponta, the Romanian prime minister told the New York Times last year. "Much more effective than aircraft and tanks." This is the game that the United States can win if we choose to play. Exporting oil and gas poses one of the best opportunities to strengthen our allies in NATO and the European Union. The former Soviet Union provides more than 40 percent of Europe's oil. Russia has nearly exclusive control over natural gas supplies to the Baltic nations, which the United States has a duty to protect under the NATO charter. This level of control leaves our allies vulnerable to price shocks and supply cuts at the whim of an expansionist oligarch. Yet U.S. crude is still restricted by a 1970s-era export ban and the federal government drags its feet on approving liquified natural gas exports.

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domestic-oil-production  crude-markets  liquefied-natural-gas  lng34  energy-exports  keystone-xl-pipeline  hydraulic-fracturing  horizontal-drilling  fracking 

Mark Green

Mark Green
Posted December 31, 2014

Business Day: For years, Organisation of Petroleum Exporting Countries (OPEC) pulled the strings set the price of oil and controlled the supply. After dictating the course of oil prices for more than 50 years, OPEC is finding its influence diminished.

Right now, OPEC represents about 40 percent of global daily production. The organization still has a say in what the energy market looks like. But for OPEC, oil can no longer be used as either a weapon or as a lever. There is simply too much production arising beyond the control of OPEC.

For 2015, US will emerge as dominant player. OPEC member countries are gradually losing the largest energy market in the world and the irony is that they will soon be competing for the markets that used to be theirs for the taking. Projections from recent happenings reveal that in 2015 the US will start dictating to the market. With the advent in 2015 of large US exports of liquefied natural gas (LNG), the effect is even larger, and with it comes the hastening of OPEC’s decline.

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american-energy  economy  energy-security  jobs  exports  crude  lng34  fracking 

Mary Leshper

Mary Schaper
Posted November 24, 2014

Wall Street Journal (Jason Bordoff): It’s a whole new oil world for the U.S.

After decades of declining domestic oil production, the country is in the middle of an unexpected boom. Driven by new technology that reaches previously inaccessible reserves, production has soared by millions of barrels a day. This surge has been a key factor driving oil prices down.

So, should U.S. oil companies be allowed to sell that oil overseas?

Because of a restriction dating back to the oil scares of the 1970s, producers for the most part can’t export their oil. The export ban was part of a series of laws passed to ease supply concerns and prevent U.S. producers from skirting price controls by selling crude into the world market at higher prices.

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energy-exports  crude-oil  liquefied-natural-gas  lng34  economic-growth  trade 

Mark Green

Mark Green
Posted August 8, 2014

The U.S. Commerce Department’s newest trade report released this week shows increased exports of crude oil and petroleum products were a major factor in shrinking the trade deficit in June to $41.5 billion, down from $44.7 billion in May.

That’s great news. Energy exports are helping build America’s economic strength globally while creating jobs and opportunity here at home. America is more secure as a result of our energy revolution that is bringing opportunities to engage world energy markets and harness U.S. energy for good. Allowing more U.S. oil and natural gas exports is the logical course to support and expand America’s global presence.

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american-energy  exports  jobs  lng34  fracking 

Mary Leshper

Mary Schaper
Posted July 24, 2014

The New York Times (Steven Rattner): As a young reporter covering energy for The New York Times, I saw firsthand the distortions and inefficiencies caused by the web of regulations that followed the Arab oil embargo of 1973-74, and the resulting surge in gasoline prices.

So I shared in the frisson of excitement last month when the Commerce Department cleared two Texas companies to export an ultralight, processed form of oil called condensate. It seemed like a step toward relaxing the ban on the export of crude oil, the biggest stricture remaining from the ’70s energy crisis.

But then the Obama administration quickly insisted that the Commerce Department, in narrowing the definition of crude oil so that condensate could be exported, was not about to lift the ban more widely. “There has been no change to our policy on crude oil exports,” a White House spokesman said.

That’s unfortunate, because America’s renewed hydrocarbon boom could be even more robust if we eased outdated restrictions on shipping both crude oil and liquefied natural gas overseas.

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texas  pennsylvania  west-virginia  alaska  wyoming  ohio  economy  jobs  lng34 

Mary Leshper

Mary Schaper
Posted April 15, 2014

Reading through the news-clips today one big message stood out: Energy is delivering promise and opportunity for states across the country. American energy is boosting local economies – from creating jobs to providing the energy we need. Take a look at what’s happening in energy in your state:

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american-energy  energy-security  fracking  exports  lng34 

Mary Leshper

Mary Schaper
Posted April 9, 2014

Wall Street Journal: The global energy equation has changed dramatically in recent years, thanks in large part to the impact of the shale-gas revolution. To get a handle on how the expectations of huge gas exports may shape the geopolitical future, The Wall Street Journal's John Bussey talked to Daniel Yergin, author and Vice Chairman of IHS Inc. Edited excerpts of their conversation follow.

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lng-exports  lng34  trade  energy-department 

Mark Green

Mark Green
Posted March 25, 2014

Because Lithuania has a front-row seat to the current Ukraine-Russia crisis, the appearance of the country’s energy minister at a Senate hearing on U.S. liquefied natural gas (LNG) exports was especially timely. Jaroslav Neverovič had a pretty simple message to the United States: We need U.S. natural gas.

Neverovič probably was the most anticipated of the witnesses at the Energy and Natural Resources Committee’s hearing, the first led by Sen. Mary Landrieu, the panel’s new chairman. Neverovič:

“At present, we are completely – 100 percent – dependent upon single supplier of natural gas and, as a result, are forced to pay a political price for this vital energy resource. Lithuanian families and businesses pay 30 percent more for natural gas than citizens in other European countries. This is not just unfair. This is abuse of monopolist position.”

The minister said while Lithuania is taking steps to achieve energy independence, it needs help.

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economy  energy-efficiency  jobs  fracking  energy-security  exports  lng34 

Mary Leshper

Mary Schaper
Posted March 21, 2014

To Americans used to thinking of energy in terms of the Middle East, the names of the world's top producers of natural gas might come as a surprise.

 

No. 1 is the United States. No. 2 is Russia. Together they stand as the giants of gas production. What separates them is that the U.S. consumes its gas, while Russia has become the world's largest exporter — a key reason why President Vladimir Putin felt confident that he could seize Crimea from Ukraine and get away with it. Russia supplies 30% of Europe's gas needs, making it hard for European leaders to muster the resolve to resist.

 

The good news is that the West can turn the tables on Putin, freeing Europe from its dependency and in the process making Russia pay dearly. That can't be done fast enough to neuter the current crisis, nor will it come cheaply. But if Putin believes his actions will drive Europe toward energy independence, he'll have to think twice. Deprived of its biggest market, Russia's fragile, energy-based economy would erode, along with its power and Putin's stratospheric popularity.

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liquefied-natural-gas  lng34  energy-exports  infrastructure  investments  trade 

Mark Green

Mark Green
Posted March 12, 2014

In a post last week we discussed the way the Ukrainian crisis is focusing a number of U.S. leaders on the potential foreign policy impacts of surging U.S. energy production. With its vast natural gas reserves, the U.S. could be a leader in the global market for liquefied natural gas (LNG), if we took the steps to make that happen – starting with government approval of permits to build LNG export terminals.

Unfortunately, that process is slow. Although the Energy Department has approved six applications since 2011, more than 20 still are pending. And the U.S. isn’t the only country eyeing the global LNG market. More than 60 non-U.S. LNG export projects are planned or under construction. In a number of ways, it’s a race to the rewards stemming from natural gas abundance.

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