Posted December 24, 2014
The gift that is American energy is seen in some key numbers: domestic crude oil production reaching more than 9 million barrels per day last month, the highest level in more than two decades, according to the U.S. Energy Information Administration (EIA); total U.S. net imports of energy as a share of energy consumption falling to their lowest level in nearly 30 years during the first six months of this year; gasoline prices dropping to an average of $2.47 per gallon last week, their lowest point since May 2009, according to the Lundberg Survey Inc.
The first two numbers might not fully register with a lot of Americans. We’ll come back to them. The last one, gasoline prices, does so loudly.
Retail gasoline prices fell after crude oil prices dropped for the fourth straight week – a product of weaker-than-expected global demand and increasing production, which EIA says will save American households $550 next year, Bloomberg News reports. Trilby Lundberg, president of Lundberg Survey to Bloomberg:
“It is a dramatic boon to fuel consumers. (Gasoline) is a modest portion of our giant gross domestic product and yet it does have a pervasive and festive benefit to motorists.”
During this season of gift-giving and receiving, Americans should give thanks for the gifts of plentiful domestic oil and natural gas, modern technologies to harness them and an industry robust and innovative enough to bring the two together, resulting in surging, home-grown production. Indeed, the dramatic increase in U.S. oil production is the key addition to global supply that’s putting downward pressure on the cost of crude, the No. 1 factor in pump prices.
Posted December 18, 2014
Some interesting perspective on New York’s decision to ban hydraulic fracturing – from neighboring Pennsylvania, where safe fracking has lifted the state economy while directly benefiting cities and towns all across the commonwealth.
Jeffrey Sheridan, press secretary for Governor-elect Tom Wolf’s transition team (to the Philadelphia Business Journal):
“Governor-elect Wolf opposes a ban, and he will work hard to make sure the process is safe. … Pennsylvania's natural resources should help the commonwealth become an energy leader, including renewable energy and energy efficiency, as well as a magnet for investment and job creation. Governor-elect Wolf's priority is to ensure that Pennsylvania is an energy leader with all Pennsylvanians sharing in the prosperity.”
Pennsylvanians are indeed sharing in prosperity that’s being generated by shale energy development, via responsible hydraulic fracturing and horizontal drilling: More than $2.1 billion in state and local taxes paid by industry, more than $630 million distributed to communities since 2012 – including more than $224 million in 2014. Plus billions in royalties paid by operators to private landowners.
Posted December 17, 2014
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 November 18, 2014
While the U.S. Senate fell just short of the votes needed to pass legislation advancing the long-delayed Keystone XL pipeline, the issue likely will reach President Obama’s desk when the new Congress is seated in January. API President and CEO Jack Gerard:
“Keystone XL is not going away. The president will have to deal with it, if not now then next year – when existing bipartisan majority support for Keystone XL in both the House and Senate will only be stronger. We will work with the new Congress to focus on getting this important jobs project approved. We will not give up until the pipeline is built. The significant gains in jobs, economic growth, energy security and national security – which have been firmly established during six years of study – prove beyond any reasonable doubt that Keystone XL is in our national interest. The national interest question is the sole consideration before President Obama, and his failure to answer it is the sole factor standing between Americans and this shovel-ready infrastructure project.”
As the Keystone XL saga continues, opponents continue to offer up a familiar grab bag of myths, half-baked goods and distortions – all designed to keep the pipeline obstructed.
Nothing new, of course. Keystone XL’s merits have been established over more than six years of close public scrutiny, including five thorough environmental reviews by the U.S. State Department – all of which have similarly concluded that the pipeline would have minimal effect on the environment and that the crude oil it will deliver to the Gulf Coast would have no material impact on U.S. greenhouse gas emissions.
The fact is Keystone XL has been studied, probed, examined, researched and analyzed like no other energy infrastructure project before it. There have been public hearings and hours of congressional debate. Through it all, Keystone XL has maintained strong support from the American people – 60 percent in a new USA Today poll.
Posted November 11, 2014
America’s trading relationship with Canada is key to U.S. energy security but also to the U.S. economy, as discussed in this recent post.
Some numbers from the International Trade Administration (ITA) help make a couple of finer points. First, while the United States imports more crude oil from Canada than any other country, our goods exports to Canada supported nearly 1.3 million jobs here in 2013 – and that number is on the rise. Second, U.S. oil and natural gas sector goods exports account for more than half of the growth in overall jobs supported by goods exports to Canada from 2010 to 2013 – and that number also is increasing.
Posted October 21, 2014
Sonecon’s updated look at ownership of the U.S. oil and natural gas industry shows that the benefits of a successful, rigorous industry sector continue to accrue to a broad range of Americans – who are the industry’s true owners. Here’s what we mean by broad:
- Public and private pension and retirements plans, including 401(k)s and IRAs, hold 46.8 percent of all shares of U.S. oil and natural gas companies in 2014.
- Asset management companies, including mutual funds, hold 24.7 percent of oil and natural gas shares.
- Individual investors hold 18.7 percent of all oil and natural gas company shares.
Combined, that’s 97 percent of all oil and natural gas company stock – held by millions of Americans across the country.
Posted October 16, 2014
Early in a panel discussion of energy policy and politics hosted by Real Clear Politics, the question was asked whether U.S. voters pay much attention to energy issues in an election year. RCP tweeted panelist/Wall Street Journal energy reporter Amy Harder’s response - that voters only notice energy when the prices are high.
Certainly, that’s generally been an accurate analysis. Less than a decade ago energy issues were challenging for U.S. policymakers staring at flat or declining domestic oil and natural gas production
But the U.S. energy picture has been dramatically altered by surging production here at home – an energy revolution made possible by advanced hydraulic fracturing and horizontal drilling and vast resources in shale and other tight-rock formations. Result: Good news in the absence of challenging energy developments – for U.S. consumers (if not for hosts of events on the intersection of energy and politics).
Posted October 14, 2014
A new study by the Aspen Institute joins a series of analyses concluding that one benefit from exporting U.S. crude oil would be lower gasoline prices here at home. Aspen’s projected reduction of between 3 and 9 cents per gallon parallels findings in previous major studies by ICF International (3.8 cents per gallon), IHS (8 cents) and Brookings/NERA (7 to 12 cents) that exports would lower pump prices.
Aspen and the other studies project other benefits from exporting crude oil, including broad job creation, economic growth and increased domestic energy production. Yet the solidifying consensus that consumers also would benefit is critically important as the public policy debate on oil exports continues.
Posted October 10, 2014
A new University of Colorado study affirms the dynamic and critical role energy development is playing in the state – in terms of support for public schools, job creation and the economy.
Just looking at 2012, oil and natural gas activity generated more than $200 million for Colorado schools, supported nearly 94,000 jobs in the state and created more than $23 million in state economic activity, according to the report conducted by the university’s Leeds School of Business and commissioned by API.