The People of America's Oil and Natural Gas Indusry

Energy Tomorrow Blog

analysis  access  oil-and-natural-gas-development  global-markets  oil-imports  american-petroleum-institute  jack-gerard 

Mark Green

Mark Green
Posted June 18, 2015

Here’s the first of a series of posts sparked by speeches and presentations at this week’s U.S. Energy Information Administration (EIA) energy conference. U.S. Energy Secretary Ernest Moniz set the tone for EIA’s event, noting that the U.S. faces a set of energy challenges, vulnerabilities and opportunities. At the heart of the discussion: America’s energy resurgence. Moniz:

“By almost any simple measure for sure, our energy security position has been enhanced a great deal over the last several years: No. 1 producer of oil and gas, oil imports in terms of a fraction of crude plus products back at 1952 levels. In fact, our production increasing so substantially in the last five years that it has become a critical factor in global pricing dynamics, challenging decades-old assumptions by OPEC, for example. We have mothballed LNG import facilities are being repurposed for exports, likely to begin next year, and, frankly, likely to see us in several years at least become one of the major LNG players on the global scene.”

Moniz credited the energy revolution for rejuvenating U.S. manufacturing, particularly among energy-intensive industries that are capitalizing on affordable natural gas for power and/or as a feedstock for a variety of products. America’s increased use of natural gas also has helped lead U.S. efforts to reduce carbon dioxide emissions, he said.

In all of the above, the secretary certainly makes good point. Thanks to innovative, advanced hydraulic fracturing and horizontal drilling, the U.S. is the world’s energy-producing leader. America is stronger and its citizens are more prosperous because we’re producing more of the energy we use right here at home.

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analysis  oil-and-natural-gas-development  production  hydraulic-fracturing  horizontal-drilling  access  texas  american-petroleum-institute 

Mark Green

Mark Green
Posted May 28, 2015

We often call the United States a global energy superpower, and it is – No. 1 in the world in the production of petroleum and natural gas hydrocarbons in 2014, according to the U.S. Energy Information Administration.

This is the result of an ongoing energy revolution, harnessing vast oil and natural gas reserves found in shale and other tight-rock formations, thanks to advanced hydraulic fracturing and horizontal drilling. America has the energy and the technologies, but also the robust industrial sector necessary to completely rewrite our country’s energy story.

Here’s another way to look at it: A number of individual U.S. states now rival the world’s major energy-producing countries. In other words, as separate countries those states would be world leaders in energy output.

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analysis  access  energy-exports  energy-supply  oil-and-natural-gas-development  senate  american-petroleum-institute  economic-growth 

Mark Green

Mark Green
Posted May 19, 2015

Solid bipartisan support for important energy legislation is on display in the U.S. Senate, with members of a key committee considering a number of ways to increase access to domestic supplies of oil and natural gas – as well as bills ending 1970s-era restrictions on U.S. crude oil exports.

Energy security is about having secure, reliable energy supplies to fuel broad economic expansion and create opportunity for individual Americans. When we remove outdated export restrictions, allowing U.S. energy to reach global markets, studies have detailed how domestic production will be stimulated – again, creating jobs and economic growth here at home. API Executive Vice President Louis Finkel talks about new legislation offered by Democrat Heidi Heitkamp, similar to legislation offered last week by Republican Lisa Murkowski, that would lift the crude export ban and boost U.S. energy:

“Bipartisan leadership on this issue keeps the focus on the consumers and workers that will benefit from free trade in crude oil. … Study after study shows that lifting outdated limits on crude exports will allow America to create more jobs, cut the trade deficit, grow the economy, and put downward pressure on fuel costs. Exports will help keep U.S. production strong in a tough market, and they will provide our allies with an important alternative to energy from less friendly regimes.”

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news  shale-energy  oil-and-natural-gas-development  access  north-dakota  energy-exports  hydraulic-fracturing  lng-exports  new-york-drilling-moratorium 

Mark Green

Mark Green
Posted May 14, 2015

Wall Street Journal: After slashing production for months, U.S. shale-oil companies say they are ready to bring rigs back into service, setting up the first big test of their ability to quickly react to rising crude prices.

Last week, EOG Resources Inc. EOG, -0.08%  said it would ramp up output if U.S. prices hold at recent levels, while Occidental Petroleum Corp. OXY, +0.93%  boosted planned production for the year. Other drillers said they would open the taps if U.S. benchmark West Texas Intermediate CLM5, -0.88%   reaches $70 a barrel. WTI settled at $60.50 Wednesday, while global benchmark Brent LCOM5, -0.13% settled at $66.81.

An increase in U.S. production, coupled with rising output by suppliers such as Russia and Brazil, could put a cap on the 40% rally in crude prices since March and even push them lower later in the year, some analysts say.

“U.S. supply could quickly rebound in response to the recent recovery in prices,” said Tom Pugh, a commodities economist at Capital Economics. “Based on the historical relationship with prices, the fall in the number of drilling rigs already looks overdone, and activity is likely to rebound over the next few months.”

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analysis  oil-and-natural-gas-investments  stocks  pension-plans  api34  access  regulation 

Mark Green

Mark Green
Posted April 28, 2015

New analysis of the performance of oil and natural gas stocks in public pension funds shows the importance of a healthy energy sector to the futures of millions of Americans – as well as the misguided nature of efforts to force institutions to end investments in oil and natural gas.

The first strengthens our country’s economy and makes more secure the future for a broad swath of people – starting with retired teachers, police officers and firefighters, among others – while the second most likely would do harm to a lot of regular Americans. ...

“In short, returns on state pension funds from investments in oil and natural gas companies provide strong earnings for public pension retirees, including America’s teachers, firefighters and police officers, according to the study,” said Kyle Isakower, API vice president of regulatory and economic policy, who briefed reporters during a conference call.

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cera  exports  exxonmobil  horizontal-drilling  hydraulic-fracturing  oil-and-natural-gas-industry  refineries  access  oil-sands 

Mark Green

Mark Green
Posted April 21, 2015

The theme of this year’s CERAWeek mega-conference in Houston is “Turning Point: Energy’s New World.” It is a new world, with the United States producing more energy from oil and natural gas – the lead fuels of the U.S. and the world’s economies – than any other country. Just a decade ago few could have imagined the possibilities. 

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oil-and-natural-gas-development  access  eia-forecast  imports  economic-growth  shale-energy  hydraulic-fracturing  horizontal-drilling  emissions 

Mark Green

Mark Green
Posted April 14, 2015

The U.S. Energy Information Administration’s (EIA) new Annual Energy Outlook for 2015 contains a number of stats, charts and projections, but you could boil them down to a couple of important points.

First, oil and natural gas are and will continue to be the foundation of an all-of-the-above energy approach that’s key to continued U.S. economic growth, energy security and overall security. EIA says oil (36 percent) and natural gas (27 percent) supply 63 percent of America’s energy now, and EIA projects they will supply 62 percent in 2040 (oil 33 percent and natural gas 29 percent). This is because oil and natural gas are high in energy content, portable and reliable. They’re the workhorse fuels of the broader economy, making modern living possible as fuels and as the building blocks for a number of products Americans depend on every day. America is and will be dependent on a variety of energies, but oil and natural gas are and will play leading roles.

The great news is the U.S. is in the midst of a revolution in domestic oil and natural gas production, leading to a second big takeaway from EIA’s report – that domestic output is and will continue to reduce U.S. dependence on imported energy.

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oil-and-natural-gas-development  gallup-poll  eia34  access  fracking  horizontal-drilling  shale-energy  imports  domestic-energy-production 

Mark Green

Mark Green
Posted April 3, 2015

A couple of data points and some observations on energy security.

First data point: The U.S. Energy Information Administration (EIA) reports that last year the United States enjoyed the largest volume increase in crude oil production since record keeping began in 1900. That’s right, the largest increase in 115 years!

Production of crude (including lease condensate) increased during 2014 by 1.2 million barrels per day to 8.7 million barrels/day. EIA says that on a percentage basis 2014’s output increased 16.2 percent, the highest growth rate since 1940. 

You can thank shale and fracking.

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energy-regulation  oil-and-natural-gas-development  epa34  boem  blm34  fracking  economic-growth  ozone  renewable-fuel-standard  methane  offshore-drilling  access 

Mark Green

Mark Green
Posted March 24, 2015

Last week’s release of the federal Bureau of Land Management’s new hydraulic fracturing rule suggests it’s time to update an infographic we posted last summer on the administration’s regulatory march that could impede America’s energy revolution. 

Unfortunately, the administration’s plans for energy regulation aren’t encouraging – not if you truly grasp the historic opportunity that surging domestic production of oil and natural gas is providing the United States.

We’re talking about the complete rewrite of America’s energy narrative, from one of scarcity – limiting America’s economic possibilities and overshadowing its national security concerns – to one of abundance in which the U.S. is more self-sufficient, more prosperous and more secure in the world.

We call that historic, revolutionary, a true renaissance in American energy.

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oil-and-natural-gas-development  access  president-obama  congress  energy-policy  economic-benefits  trade  regulation 

Mark Green

Mark Green
Posted February 26, 2015

The president’s Council of Economic Advisers (CEA) understands the significance of the U.S. energy revolution quite well – reflected in the energy chapter of its recent 2015 Economic Report of the President.

The chapter should be widely read by policymakers, from the president and Congress on down, because it notes the role of surging domestic oil and natural gas production in the ongoing energy revolution. From there it’s possible to identify needed policies for the future.

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