Posted September 10, 2013
Fracking, the Poor and Adding to Americans’ Disposable Income
Wall Street Journal (editorial): Last week we reported on a study showing that the U.S. oil and natural gas revolution may be the country's best antipoverty program, and the evidence keeps coming. A new report from IHS Global Insight estimates that fracking added the equivalent of a cool $1,200 to real household disposable income on average in 2012.
Lower costs for raw materials were passed on to consumers via lower home heating and electricity bills and lower prices for other goods and services. Wages also increased from a surge in industrial activity. On present trend, IHS predicts that unconventional oil and gas will contribute more than $2,000 a year by 2015 and $3,500 by 2025.
Overall the industry lifted economic growth by $283 billion last year.
Read more (subscription publication): http://on.wsj.com/13GJtDS
Posted September 9, 2013
If California Gets Its Act Together on Fracking, An Economic Boom Awaits
Forbes: Alex Epstein -- I live in California, a state where our government is practically bankrupt, businesses are fleeing, and 1.6 million citizens are unemployed. To say the least, our state needs an economic breakthrough.
Fortunately, we are on the verge of one. The state that gave birth to Silicon Valley has the opportunity to become Energy Valley, thanks to a miraculous technology that turns stone into oil.
That technology is called shale oil technology. Governor Brown calls it “an opportunity we can’t miss” because it can single-handedly turn our economy around.
Read more: http://onforb.es/17LLAYn
Posted September 6, 2013
U.S. Oil Production Reaches Highest Level in 24 Years
Fuel Fix Blog: U.S. oil production last week hit its highest level in nearly a quarter century, as companies seek to capitalize on high oil prices, according to federal data.
Domestic oil production hit 7.621 million barrels per day in the week ending Aug. 30, the U.S. Energy Information Administration said in its latest weekly update.
That surpassed the 7.609 million barrels per day production mark set the week prior and was the highest production total since October 1989, when production averaged 7.644 million barrels per day.
Read more: http://bit.ly/1ad7bcL
Posted September 5, 2013
How America’s Oil and Natural Gas Revolution is Helping Consumers and Workers
CNN Money (Daniel Yergin): The rapid rise in shale gas and tight oil in the United States constitutes nothing less than a revolution in oil and natural gas. No longer can there be any doubt about the dramatic change in America's energy position. U.S. oil production is up 50% since 2008, when we were supposedly slated to run out of oil. Natural gas production has increased by 33% since 2005, and shale gas alone now constitutes about 45% of total natural gas production.
This revolution is not just about energy production; it's an economic story along several dimensions, whether measured in consumers' pocketbooks, jobs, U.S. manufacturing output, or America's increased competitiveness in the world economy. This has occurred amid a half-decade of deep recession and high unemployment. Indeed, without the boost from the unconventional oil and gas development, the U.S. economic picture would have looked even worse over the last few years.
Read more: http://bit.ly/15ClGse
Posted September 4, 2013
U.S. Energy Lifting Economy More Than Expected
USA Today: Newly found sources of domestic oil and natural gas are having an even bigger impact on the economy than first projected, adding more than $1,200 last year to the discretionary income of the average U.S. family, a new study says.
The explosion in domestic energy production now supports 1.2 million jobs, directly or indirectly, says consulting firm IHS, in a study released Wednesday. That number will grow to 3.3 million by 2020, and new energy's contribution to U.S. families' disposable incomes will hit $2,000 per household per year by 2015, said IHS.
Read more: http://usat.ly/13eFEFC
Posted September 3, 2013
COLUMN – Your Kids Should Consider Petroleum Engineering
Reuters: Encouraged by some of the highest starting salaries available in any industry, record numbers of students are enrolling in petroleum engineering courses at U.S. universities.
It is part of a broader renaissance in engineering education, which should eventually ease severe skill shortages in the oil and gas sector.
But it will be the end of the decade before these new graduates are the experienced professionals needed to lead teams and make a real difference to exploration, output and refining.
In 2010, 1,295 graduate students enrolled in petroleum engineering courses at U.S. universities, according to the U.S. Department of Education's "Digest of Education Statistics."
Read more: http://reut.rs/15V2jb8
Posted August 30, 2013
Benefits of Fracking Will Be Tested in Syria Attacks
Forbes: Oil prices are surging on concerns that a U.S.-led attack on Syria could disrupt global oil supplies. West Texas Intermediate crude traded at $110.45 a barrel on the New York Mercantile Exchange this morning, after rising more than $3 a barrel on Tuesday. Less than two months ago, oil sold for less than $100.Gasoline prices have risen the most in six weeks at a time when forecasts had indicated they would be falling because of seasonal decline in demand.
It’s a pretty typical market response to geopolitical unrest in the Middle East. The concern, of course, is that any escalation of the Syrian conflict will expand to include other oil-producing nations, particularly Iran. Iran has the power to control the all-important Strait of Hormuz, through which about 17 million barrels of oil pass each day — roughly one fifth of the world supply.
But this time things are different, at least from the U.S. perspective. The implications of a supply disruption are muted because domestic production is at a 20-year high, driven by the hydraulic fracturing boom. U.S. inventories are flush.
Read more: http://onforb.es/15jNSjt
Posted August 28, 2013
The Infrastructure Supporting America’s Energy Renaissance Begins in Texas
Fuel Fix Blog: While many states throughout the nation struggle to make ends meet, surrounded by economic uncertainty, Texas is booming. Robust investment in the energy industry – from deep-water drilling to above ground production, and everything in between – has allowed the state to succeed despite an inconsistent U.S. economy.
None of this is news to those living in the Lone Star State – and in fact Texas has received a steady stream of national attention for its economic success – however it is worth noting that a key reason for such outstanding growth has been the investment in and development of our nation’s extensive energy infrastructure.
In April 2013 alone, Texas created over 33,000 jobs, which is more than any other state in the country, and nearly one-fifth of all the jobs created in the United States.
Read more: http://bit.ly/1dQjBcL
Posted August 27, 2013
The Geography of Jobs: Smart Policies Are Good, But Oil Is Better
The Atlantic: If you want to understand how to create jobs -- not just a few at a time, but hundreds of thousands at once -- look to Texas and North Dakota.
Together, these two states account for a little more than 8 percent of the country's population -- about one in 12 people. But they're also responsible for 20 percent of net new jobs since the end of the recession. And, crucially, they account for "more than 100 percent of the increase in U.S. [oil] production since 2009," James Hamilton writes.
The Great Plains have been relatively great throughout the recovery for many reasons -- cheaper land, cheap wages, service sectors insulated from the housing-finance crisis that leveled parts of California, Florida, Arizona, and Nevada -- but energy has helped a lot.
Read more: http://bit.ly/1823p3p
Posted August 26, 2013