The People of America's Oil and Natural Gas Indusry

Energy Tomorrow Blog

energy-security  environment  jobs  exports  prices 

Mary Leshper

Mary Schaper
Posted October 20, 2014

Shale Boom Helping American Consumers as Never Before

Bloomberg: Oil traders might see the 27 percent slide in global prices as a bear market. For U.S. consumers, it’s more like an early holiday gift.

shale energy

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economy  jobs  american-energy  rfs34  exports  fracking 

Mary Leshper

Mary Schaper
Posted October 15, 2014

The State Journal (West Virginia): The U.S. Energy Information Administration's Drilling Productivity Report, released Oct. 14, revealed that the Marcellus Shale play is anticipated to produce more gas than other reported regions in November.

 

The Marcellus region is expected to produce 16,045 million cubic feet of gas per day in November 2014, reflecting a 217 mcf/day increase from October, making it both the highest-producing region among the Utica, Bakken, Eagle Ford, Haynesville, Niobrara and Permian basins.

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economy  jobs  american-energy  crude-oil  exports  colorado  texas 

Mary Leshper

Mary Schaper
Posted October 14, 2014

Huffington Post (Aspen Institute’s Thomas Duesterberg): The largely unanticipated boom in oil production in the last five years has revived a debate over whether the United States should reverse the forty-year old ban on exports of crude oil. Even though we still import around 30 percent of total crude and refined products, the U.S. refinery industry is unable to process much of the new supply of light crude oil produced from domestic light shale formations. In turn, domestic prices for light oil lag the world price and eventually could result in reduced levels of new production. Allowing exports would likely equalize domestic and world prices and also lead to more efficient global processing because many refineries abroad, especially in Europe, can do a better job than their U.S. counterparts. The United States would continue to import heavier grades of crude oil which its refineries are built to process.

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american-energy  exports  jobs  economy  trade  fracking 

Mary Leshper

Mary Schaper
Posted October 3, 2014

The Hill Congress Blog (Dan Eberhart): America’s boom in shale oil and gas has given us a new tool to counter aggressive nations without firing a shot.  That tool is energy abundance.  With increased production and new techniques of extracting energy from shale, it’s time to break free from outdated shackles on U.S. crude oil exports.

In the 1970s, we were hogtied by energy scarcity. The U.S. suffered a devastating oil embargo during the mid-1970s courtesy of the Organization of Arab Petroleum Exporting Countries (OAPEC), and at the end of the six-month embargo, oil prices had quadrupled from $3 a barrel to nearly $12. Our country’s economy was crippled, and we faced the prospect of “stagflation” and wage and price controls.

By December 1975, President Gerald Ford signed the Energy Policy and Conservation Act (EPCA), a ban on most U.S. energy exports that remains in place today.  At the time, export bans made sense; they preserved the resources we did have.  

That was then, this is now.

Today, the ban is hurting our economy and global competitiveness. Lifting the crude export ban would tilt global markets, benefit the American consumer and bolster the US economy, restoring the US to the status of energy superpower. 

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alternative-energy  economy  jobs  fracking  exports  global-markets 

Mary Leshper

Mary Schaper
Posted October 2, 2014

Real Clear Energy (David Holt, CEA): When Americans hit the polls in a few weeks, job growth and the overall economy will be the most important issue in deciding whom they vote for Congress, a recent CBS News/New York Times polls says.

A CNN/ORC poll echoed similar sentiments, as did a Bloomberg national poll, NBC News/Wall Street Journal poll, and Kaiser Family Foundation Health Tracking Poll. Trepidations about the economy, these polls show, are shared by all Americans – Democrats, Republicans, Independents, blue states, red states. We all have these worries.

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crude-oil  exports  trade  oil-production  economic-benefits 

Mark Green

Mark Green
Posted September 10, 2014

A new report from Brookings’ Energy Security Initiative adds more scholarly weight to the analytical case for lifting America’s decades-old ban on crude oil exports. Echoing earlier studies by IHS and ICF International, the Brookings research finds that allowing the export of domestic crude would stimulate more oil production here at home, provide broad economic benefits and strengthen U.S. energy security. Brookings:

… we believe that the U.S. should allow the market to determine where crude oil will go and move immediately to lift the ban on all crude oil exports. … After 40 years of perceived oil scarcity, the United States is in a position to help maximize its own energy and economic security by applying the same principles to free trade in energy that it applies to other goods. By lifting the ban on crude oil exports, the United States also will help mitigate oil price volatility while alleviating the negative impacts of future global oil supply disruptions.

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economy  jobs  energy-security  american-energy  exports  fracking  marcellus  texas 

Mary Leshper

Mary Schaper
Posted September 9, 2014

Platts: US gasoline prices will fall 9-12 cents/gal and prices elsewhere in the world will fall 10-13 cents/gal if current US restrictions on oil exports are dropped next year, a leading Washington think-tank said Tuesday.

"The more the US exports crude oil, the greater decline in gasoline prices," the study from The Brookings Institution's Energy Security Initiative claimed. "As counterintuitive as it may seem, lifting the ban actually lowers gasoline prices by increasing the total amount of crude supply, albeit by only a modest amount."

Brookings' finding are nearly identical to those of a May study from energy consultancy IHS which concluded that free trade of crude would cause US gasoline prices to fall 8-12 cents/gal due to the close link between gasoline and world oil prices.

Like IHS, the Brookings study claimed the impact of crude exports on gasoline prices dulls over time, falling from a 9-12 cent/gal drop in 2015 to 0-10 cents/gal by 2025.

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crude-oil  exports  economic-growth  oil-production 

Mark Green

Mark Green
Posted September 4, 2014

New Jersey Gov. Chris Christie is making headlines this week with a speech from Mexico calling for stronger economic ties between the two countries and actions to sustain what he called the “North American energy renaissance” – including lifting the decades-old ban on exporting U.S. crude oil. Christie:

“For all of North America, the energy revolution has improved our strategic and competitive position. But the revolution remains in its infancy. And whether North America realizes the full potential of its energy opportunity will be the result of more than just luck and natural bounty, it will also be driven by the policy choices and investments we must make. … The 1970s-era ban on crude exports creates a price anomaly which holds U.S. crude oil at a discounted price, which ultimately hurts upstream production and limits the energy boom.”

Christie’s remarks parallel what others are saying about ending the domestic crude oil export ban.

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american-energy  economy  jobs  pennsylvania  exports  gulf-leases  gulf  refinery  keystone-xl-pipeline 

Mary Leshper

Mary Schaper
Posted August 21, 2014

Wall Street Journal: U.S. economic growth accelerated in the second half of 2013 before unexpectedly contracting early this year. But growth late last year was uneven across the nation, with some energy-rich states leading the pack while economies slowed in New England and on the Plains.

 

That’s according to new data released Wednesday by the Commerce Department. The agency already reported gross domestic product for the nation on a quarterly basis and at the state level annuallyNow, it has offered a quarterly breakdown for state-level GDP data through the end of 2013. The data are volatile from quarter to quarter, but allow a finer understanding of the ups and downs in regional economies.

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american-energy  trade  global-markets  exports  fracking  economy  energy-security 

Mary Leshper

Mary Schaper
Posted August 7, 2014

The Christian Science Monitor: WASHINGTON — An oil and gas boom helped drive the US trade deficit to a five-month low in June, according to federal data released Wednesday.

Increased domestic energy production means Americans are buying less foreign oil and gas, and selling more of it overseas. That has tamped down the trade deficit in recent years, helping along an economy that continues to recover from the Great Recession.

Some say the deficit could be slashed further if the US were to ease energy export restrictions put in place to protect US consumers from global energy shocks. But such a move would have impacts that go beyond the country’s balance of trade. Critics of oil and gas exports say they will raise energy prices at home, and increase the environmental impacts of extracting and burning fossil fuels.

Either way, a renaissance in oil and gas production is already changing the way officials, analysts, and economists look at the future of the US economy.

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