Posted April 14, 2014
Much is written about the macro-economic effects of public policy, including energy policy. America’s oil and natural gas industry supports 9.8 million jobs – 5.6 percent of total U.S. employment – and contributes $1.2 trillion to national GDP, according to a study by PwC. But what about the state impacts? Over the next couple of weeks we’ll push out a series of posts focusing on selected states to examine energy’s more localize economic effects, as well as other energy-related issues.
Let’s start with Kentucky, where energy means jobs.
Posted April 7, 2014
Take a good look at the chart below – brand-new from the U.S. Energy Information Administration (EIA). The green line disappearing into the horizontal axis between the years 2030 and 2040 is what U.S. energy self-sufficiency looks like.
This is a big, big deal – a goal of every U.S. president since Richard Nixon more than 40 years ago: the point where domestic production exceeds imports, which EIA never included in any of its projections. Until now.
Because of surging tight-oil production – oil from shale and other tight-rock formations, developed with advanced hydraulic fracturing and horizontal drilling – the agency is including in its 2014 Annual Energy Outlook a high-production scenario under which net imports would reach near-zero between 2030 and 2040.
Posted April 2, 2014
The U.S. Energy Information Administration (EIA) reports that total net U.S. energy imports declined last year to their lowest level in more than 20 years – reflecting two energy positives for America: growth in domestic oil and natural gas production and increased exports of finished petroleum products. EIA:
Total U.S. net imports of energy, measured in terms of energy content, declined in 2013 to their lowest level in more than two decades. Growth in the production of oil and natural gas displaced imports and supported increased petroleum product exports, driving most of the decline. A large drop in energy imports together with a smaller increase in energy exports led to a 19% decrease in net energy imports from 2012 to 2013.Total energy imports declined faster—down 9% from 2012 to 2013—than in the previous year, while export growth slowed. Crude oil production grew 15%, about the same pace as in 2012, which led imports of crude oil to decrease by 12%, accounting for much of the overall decline in imports.
Posted February 10, 2014
The top of Pew Research’s annual survey of the U.S. public’s top issues priorities looks a lot like last year’s – and the survey for 2012, and for 2011 and for 2010. This year, as in each of those previous years, Americans told Pew that strengthening the economy and improving the job situation should be the top priorities for President Obama and Congress.
The specific percentages vary from year to year, but boosting the economy and creating more jobs are consistently at the forefront of most Americans’ thinking. Unfortunately, the January jobs report from the U.S. Bureau of Labor Statistics indicates continuing difficulty on both fronts. Although the economy added 113,000 jobs in January, the figure was short of the 180,000 or so jobs expected by analysts surveyed by Bloomberg.
Yet, while total U.S. non-farm employment rose just 0.1 percent from December 2013 to January 2014 and has grown 1.7 percent from January 2013 to January 2014, the jobs picture for oil and natural gas extraction is something different – and better. Sector employment rose 0.9 percent to 206,000 jobs last month over December 2013 and has increased 6.6 percent (12,800 jobs) since January 2013.
Posted January 30, 2014
President Obama, during his State of the Union address to Congress this week:
“… one of the biggest factors in bringing more jobs back is our commitment to American energy. The ‘all the above’ energy strategy I announced a few years ago is working … “
Yes, “all of the above” is working. It refers to embracing all energy sources – oil, natural gas, coal, nuclear, wind, solar, hydro, renewables and others. That the approach is working is seen in the United States’ increasing energy self-sufficiency. And America is more energy self-sufficient because we’re less reliant on others – chiefly thanks to surging domestic oil and natural gas production.
Posted December 26, 2013
Though there are compelling, Economics 101-type reasons the U.S. should lift its dated ban on crude oil exports and help clear the way for the export of U.S. liquefied natural gas (LNG), opponents of both continue to misunderstand the way global energy markets work – as well as the significant benefits accruing to the United States from free trade.
You’ve probably heard the rhetoric: Keep American oil and natural gas locked up here at home for U.S. consumers.
This misses the essential fact that crude oil is traded (and priced) globally, and that limiting LNG exports will only limit U.S. participation in an important, developing market – while effectively denying our country the infusion of overseas wealth in exchange for valuable American commodities.
Posted December 16, 2013
The U.S. Energy Information Administration (EIA) offered a preview of its 2014 Annual Energy Outlook that will come out next spring, and the second slide in Administrator Adam Sieminski’s presentation is an attention grabber, charting how expanding domestic oil production will reach historic levels in 2016 – 9.6 million barrels per day, a mark set in 1970.
Posted December 13, 2013
There’s much to mine from ExxonMobil’s 2014 energy outlook, but here’s a quick analysis: In a world of increasing energy demand, the future looks brightest for countries that have significant energy reserves, modern industries that can find and produce from those reserves and policies that allow them to be major players in the global marketplace. For the United States that would be check, check and … check back later.
ExxonMobil’s William Colton and Kenneth Cohen highlighted the annual report that looks to global energy demand and supply out to the year 2040. Key projections and charts:
Demand – The world’s energy demand is expected to increase 35 percent over 2010 levels by 2040. Most of the demand growth will come from the developing world. ExxonMobil projects flat demand growth in developed nations despite expanding economies due to technology and energy-use efficiencies.
Posted December 12, 2013
In the spirit of the holiday season, we take stock of more of the gifts our country’s oil and natural gas bounty is able to present to every American – certainly, gifts that keep on giving!
First, let’s acknowledge that oil and natural gas are the energies of our lives. No hyperbole there. Oil and natural gas are the source of energy-intense fuels for transportation as well as warmth in the winter and cooling in the summer. They’re also the building blocks for a number of products we use every day, making our lives more modern, more comfortable and safer. Every day 143 U.S. refineries convert an average of 15 million barrels of crude oil for these uses and more.
For 9.8 million Americans, the oil and natural gas industry supports their employment – directly, indirectly in supporting industries and across our economy in jobs that wouldn’t exist without oil and natural gas development. Now, let’s get to those presents.
Posted December 3, 2013
International Energy Agency (IEA) Chief Economist Fatih Birol was at CSIS this week, highlighting the organization’s findings in its 2013 World Energy Outlook. The report focuses on global energy demand growth, the future energy mix and the sources of energy. Key takeaways from Birol’s presentation:
- The United States could become the world’s leading oil producer as early as 2015, two years earlier than IEA projected a year ago, Birol said.
- About two-thirds of the growth in global energy demand between now and 2035 will come from Asia.
- U.S. energy production, especially surging natural gas output from shale via hydraulic fracturing, is creating energy cost differentials that make American products more competitive in the global market.