Posted August 21, 2013
USA Today: What New Energy Landscape Means to USA
When Mexican President Enrique Peña Nieto unveiled a plan recently to allow private investment in his nation's energy production, it received relatively little notice. But it is a very big deal. Mexican oil has been the province of a government controlled-monopoly since the industry was nationalized in 1938.
Adding private sector know-how could easily increase production by 25% or more in a decade as new drilling technologies are brought to bear. This would add to an equally positive and unanticipated development: the vast increase in oil and gas production in the USA and Canada.
Posted August 16, 2013
USA Today – Our View: Ethanol Quotas Pump Money from Your Pocket
USA Today’s editorial says that the increasing ethanol mandate is “bad public policy” that the “Obama administration has some flexibility to lower mandates, but a better approach would be to repeal the law entirely.”
City Journal – The View from Marcellus
Hydraulic fracturing “brings breathtaking economic and environmental benefits – at least to places that welcome it,” writes James Panero. He also notes that in 2000, shale produced only 2 percent of our domestic oil and natural gas supply. According to government studies, 50 percent now comes from shale and unconventional sources.
Posted August 15, 2013
North Dakota blogger Rob Port comments on concerns voiced by the state’s mineral resources director: “It’s always been a hard sell to the public at large that North Dakota’s oil boom – the goose laying the golden eggs – isn’t a given. To ensure the boom is something more than a boom-and-bust, the state should be looking at simplifying the tax code.”
The Hill’s Energy & Environment Blog – EPA’s McCarthy: Responsible Natural Gas Production Key to Climate Strategy
EPA Administrator Gina McCarthy, speaking in Colorado: “Responsible development of natural gas is an important part of our work to curb climate change and support a robust clean energy market at home.”
Posted August 14, 2013
National Journal – Infograph: Field of Pipes
NJ’s Amy Harder writes that “as Washington fights, pipes meant for Keystone XL collect dust.” The graphic provides perspective: More than 200 miles of pipe worth $200 million sitting in Gascoyne, N.D. waiting on approval of the 1,700-mile pipeline from Alberta, Canada to the U.S. Gulf Coast.
AEI Ideas Carpe Diem Blog– U.S. Oil Output Increased to 24-Year High in Just Two Years
Blogger Mark J. Perry notes a Department of Energy report that found U.S. oil output averaged 7.57 million barrels per day – the highest domestic crude oil output since 1989, and more than 22 percent higher than the same week last year. Perry: “That’s pretty amazing – thanks to advances in drilling technologies, it’s as if we’ve discovered all of Brazil’s vast energy resources right here in America.”
Posted August 13, 2013
In an effort to curb carbon emissions, Canadian energy companies have started converting CO2 into products – taking carbon dioxide from processing oil sands, mixing it with wastewater and fed to algae, which then can be turned into cattle feed and other products.
Washington Times – China Will Surpass U.S. in Oil Imports
According to EIA data, China will take over the top spot from the U.S. as the world’s largest importer of crude oil by October, the newspaper reports. This shift in the global oil market – the first time the U.S. will not be the top importer or oil since the 1970s – “could transform geopolitics” as the U.S. shale surge continues.
Posted July 30, 2013
The Energy Policy Research Foundation, Inc. (EPRINC) released a study last week highlighting the consequences of exceeding the blendwall:
“The current regulatory regime, if not reformed in some substantial manner, will likely spike gasoline prices in 2014, as federal mandates take the U.S. gasoline pool significantly above 10 percent ethanol by volume.”
The risk mentioned here isn’t coming as a surprise. We’ve described the potential consequences of the RFS and highlighted the real costs of the program here, here, and here. EPRINC’s study brings all of these problems into focus, underscoring the immediate consequences that could face consumers in 2014.
Posted July 29, 2013
Boston Herald – End Ethanol Madness
In an editorial, the Boston Herald notes recent hearings by the House Energy and Commerce Committee on the Renewable Fuel Standard. The paper argues that the “mandate should be ended.”
Dallas Business Journal – Dallas Firm Uses Solar to Power West Texas Oil Rigs
A sign of a true “all-of-the-above” energy policy, one Dallas energy firm is using a solar generator to power oil and natural gas rigs in West Texas. The system has batteries which can store up to 24 hours worth of power.
Posted July 26, 2013
Richmond Times-Dispatch – White House Would Tax Away Virginia’s Energy Future
Policy that enables the oil and natural gas industry to produce more would have a far greater impact on state and federal coffers than would any partisan policy that hinders the industry with higher taxes, notes Jack Refuse in a guest opinion piece.
Posted July 26, 2013
Earlier we took a look at claims by the Renewable Fuels Association (RFA) that ethanol production was “a particularly important catalyst” and “major driver” of declines in finished motor gasoline imports (Spoiler Alert: No). Today, continuing the Sisyphean task of correcting false narratives put forth by the RFA, let’s look at the notion that ethanol is leading the way in providing energy security. RFA’s statement in a House hearing this week:
In fact, cumulative new ethanol production since 2005 has accounted for 62% of new domestically-produced liquid fuels, while cumulative new U.S. crude oil production has accounted for 38%.
Posted July 25, 2013
Des Moines Register – Iowa Will Have to Import Corn
With increased ethanol obligations and growing livestock operations needing more feed, Iowa – the nation’s “king of corn production” – will have to import kernels to keep up with demand, an analyst tells the newspaper.
Master Resource - Frac Bounty: All Should Participate
Blogger Paul Driessen highlights the benefits of U.S. shale development – game-changing technologies that have led to job creation and economic boosts across the country. Driessen got a first-hand look at hydraulic fracturing drilling in northern Pennsylvania noting the “signs of pride and prosperity were evident all over Williamsport.” Driessen: We need to frack for a better, cleaner, happier world!”