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.
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.
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.
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.
Posted February 14, 2015
Some time ago the Keystone XL pipeline debate stopped being a discussion of energy infrastructure and whether the privately financed project was in the national interest. Thank Keystone XL’s opponents, who detached the debate from fact and scientific analysis to better serve their purposes.
Keystone XL’s most ardent foes readily acknowledged as much. They said that for them the pipeline was a symbol to be used in pursuit of political power. As one anti-pipeline activist put it: “The goal is as much about organizing young people around a thing. But you have to have a thing.”
Symbolism over substance, politics over the greater public good? Too often that’s the way it’s played Inside The Beltway. But at some point political power needs to give way to actual power, and public policy should be grounded in our energy reality, not symbolism. It should be fact-based and consider the impacts on the daily lives of real people, not narrow ideological agendas.
Posted February 2, 2015
Taking a look at the president’s new budget request for the Interior Department, we see the administration asking for $13.2 billion, an increase of nearly $1 billion over the enacted funding level for the current fiscal year.
Now take a look at data from Interior’s Office of Natural Resource Revenue, which tabulates federal revenues from energy developed in federal areas onshore and offshore.
It’s a lot of information, but check the bottom line: For fiscal year 2013, revenues from oil and natural gas developed in federal areas totaled about $12.9 billion. For FY2014 the total was about $11.7 billion. Federal revenues from oil and natural gas development in FY2014 were about $1.2 billion less than in FY2013.
Interestingly, the amount of lost revenue is just about equal to Interior’s requested budget increase for FY2016. In other words, Interior lost $1.2 billion in revenue from 2013 to 2014 and basically is looking to taxpayers to fill in the gap in the next budget.
Posted January 15, 2015
Charting some of the latest Bureau of Land Management (BLM) data on federal oil and natural gas activity – which mostly shows continuing decline.
First, BLM issued fewer new oil and natural gas leases in fiscal year 2014 than in any year since FY1988. That year 9,234 new leases were issued, a number that fell to 1,157 in FY2014. Last year’s number was a retreat from FY2013, when 1,468 new leases were issued.
Other indicators also show declining oil and natural gas opportunity in areas controlled by the federal government.
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Posted December 31, 2014
So long, 2014. From an energy standpoint, you’ll be missed. Let’s count the ways:
Surging domestic oil and natural gas production – largely thanks to safe hydraulic fracturing and horizontal drilling – is driving an American energy revolution that’s creating jobs here at home and greater security for the United States in the world.
It’s a revolution with macro-economic and geopolitical impacts, for sure. But it’s also a revolution that’s benefit virtually every American.
Posted December 10, 2014
Two U.S. energy production updates and a new Congressional Budget Office (CBO) report showing the economic impacts of America’s shale energy revolution – which is driving overall U.S. production.
A chart from energy/economics blogger Mark J. Perry shows the impact of U.S. energy production on energy imports – measuring net petroleum imports as a share of products supplied. The chart shows steady increases in imports from the mid-1980s to an apex of more than 60 percent in 2005. Today, we’re looking at a percentage share that’s as low as it has been in four decades.
Posted December 3, 2014
New Orleans Times-Picayune: After more than a decade of work and a $7.5 billion investment, Chevron has started oil and gas production at its Jack and St. Malo fields in the deepwater Gulf of Mexico. The fields are among the largest in the region, expected to produce more than 500 million barrels of oil equivalent over the next three decades.
The Jack and St. Malo fields, discovered in 2003 and 2004 respectively, are located 25 miles apart in the Walker Ridge region of the Gulf about 280 miles south of New Orleans.
Oil and gas from the fields will flow back to a single, floating production platform located between the two fields. The platform has the capacity to produce up to 170,000 barrels of oil and 42 million cubic feet of natural gas per day.