The People of America's Oil and Natural Gas Indusry

Energy Tomorrow Blog

oil-and-natural-gas  domestic-energy  economic-benefits  hydraulic-fracturing  fracking  horizontal-drilling  access 

Mark Green

Mark Green
Posted October 10, 2014

The U.S. Energy Information Administration (EIA) has another report on oil imports that underscores the incredible sea change in America’s energy picture – due to increased domestic production of oil and natural gas. EIA says net imports of energy as a share of energy consumption fell their lowest level in 29 years for the first six months of 2014.

This is a snapshot of America’s energy revolution – the fundamental shift from energy scarcity to abundance that would have been unthinkable less than a decade ago. The shift is the result of surging oil and natural gas production using advanced hydraulic fracturing and horizontal drilling, harnessing oil and gas reserves in shale and other tight-rock formations. Safe, responsible energy development has made the United States the world’s No. 1 natural gas producer, and the U.S. could become the world’s top producer of crude oil related liquids before the year is out, the International Energy Agency reports (h/t Financial Times.com).

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energy-exports  crude-oil  natural-gas-supplies  lng-exports  economic-benefits  production 

Mark Green

Mark Green
Posted October 6, 2014

We’ve posted a number of times on the merits of U.S. energy exports, because whether the subject is exporting crude oil or natural gas, there are compelling economic and energy reasons to lift restrictions on America’s ability to be a major player in global markets. While those restrictions remain, America and Americans lose.

A number of studies have said that energy exports will benefit our economy and stimulate more domestic production – here, here and here on liquefied natural gas (LNG) and here and here on crude oil. A new report from Columbia University’s Center for Global Energy Policy added that LNG exports could help strengthen the United States’ foreign policy hand.

Thanks to abundant oil and natural gas reserves, advanced hydraulic fracturing and horizontal drilling and investments by a robust industry sector, the U.S. is the world’s No. 1 producer of natural gas and is about to become No. 1 in oil output (subscription required). Yet, because of self-imposed and outdated (in the case of the crude oil) export restrictions, the U.S. isn’t harnessing its energy potential as it could and should.

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lng-exports  liquefied-natural-gas  economic-benefits  production 

Mark Green

Mark Green
Posted October 1, 2014

Earlier this month Oilprice.com’s Nick Cunningham wrote this piece explaining that the debate over exporting U.S. liquefied natural gas (LNG) has been won – citing the openness of the Obama administration and leading Democrats to exports. Cunningham writes:

In fact the Obama administration and Congressional Democrats have received little blowback for the LNG projects that have received approval. And with tacit or overt support from Democrats, the LNG issue has largely been won by export supporters.

Still, some export opponents try to gain traction despite the findings of a number of studies (NERA, ICF, Brookings) that project broad economic benefits to the United States from LNG exports, with minimal effect on domestic prices. Earlier this year NERA updated its 2012 study:

LNG exports provide net economic benefits in all the scenarios investigated, and the greater the level of exports, the greater the benefits. The market for LNG exports is self-limiting, in that little or no natural gas will be exported if the price of natural gas in the US increases much above current expectations. High levels of exports can be expected only if natural gas is plentiful and inexpensive enough to produce so that prices remain below current levels, even with high levels of exports. (Emphasis added)

The issue of domestic prices is important because export opponents have been using an apples-to-oranges argument trying to scare up unfounded concern about the domestic effects of exports, citing conditions in Australia’s natural gas market.

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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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oil-and-natural-gas-jobs  economic-benefits  oil-and-natural-gas-development  energy-development  hydraulic-fracturing 

Mark Green

Mark Green
Posted September 9, 2014

One way to measure the positive impact of America’s oil and natural gas industry is the 9.8 million jobs it supports nationally, accounting for 5.6 percent of total U.S. employment. Another way to look at our industry’s economic breadth is the size and diversity of supporting businesses, reaching into every state in the union and the District of Columbia.

That’s what you see in a new vendor supply survey unveiled this week, listing 30,000 operators, contractors, service companies, suppliers and other vendors that support oil and natural gas operations. Even if there isn’t an oil or natural gas well site near where you live, chances are good a business that supports the oil and natural gas industry is.

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oil-and-natural-gas-jobs  hydraulic-fracturing  economic-benefits 

Mark Green

Mark Green
Posted September 8, 2014

A final word on a recent op-ed attack on hydraulic fracturing by a Natural Resources Defense Council policy analyst – an especially glaring example of the way the anti-fracking crowd often kicks the facts to the curb while trying to undermine public support for safe, responsible drilling, the No. 1 reason for America’s energy revolution.

Quick review. We’ve already shown that federal and state regulatory regimes – with industry standards – are protecting the environment, drinking water supplies and communities. We’ve detailed how horizontal drilling has been around for decades, that advanced fracking is safe and beneficial, and that the resulting surge in natural gas production and use is largely responsible for reducing U.S. energy-related carbon dioxide emissions to their lowest level since 1994.

Now let’s talk jobs – one of our favorite subjects because the oil and natural gas industry supports 9.8 million of them, or about 5.6 percent of total employment in this country.

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fracking  hydraulic-fracturing  safety-standards  economic-benefits  greenhouse-gas-emissions 

Mark Green

Mark Green
Posted September 3, 2014

Following up on last week’s rebuttal of a truth-challenged attack on hydraulic fracturing in a USA Today op-ed, in which we detail how federal and state regulation, combined with industry standards are protecting the environment, water supplies and communities.

The op-ed by the Natural Resources Defense Council’s Amy Mall opens by posing a false choice for Americans: economic and energy security from development using fracking or safety. It continues:

… a controversial new extraction technology known as "fracking" — combined with unprecedented exemptions for the industry from bedrock federal environmental and public health laws — has fueled a recent explosion in domestic oil and gas development. And safeguards have not kept pace.

Fracking isn’t new. Earlier this year the U.S. marked the 65th anniversary of the first commercial use of hydraulic fracturing. Fracking pre-dates McDonald’s, diet soft drinks, credit cards and more – even Barbie. It’s a fact, and saying otherwise is dishonest.

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oil-and-natural-gas-development  gasoline-prices  eia34  economic-benefits  crude-markets  hydraulic-fracturing 

Mark Green

Mark Green
Posted August 29, 2014

Supply matters. The impact of the U.S. energy revolution on global supply, with real benefits reaching consumers, is seen we head into the Labor Day weekend. The U.S. Energy Information Administration (EIA) reports the U.S. average retail price for gasoline on Aug. 25 was the lowest price on the Monday before Labor Day since 2010. EIA explains:

The recent decline in gasoline prices largely reflects changes in crude oil prices. In June of this year, the Brent spot price reached its year-to-date high of $115/barrel (bbl), then fell to $102/bbl on August 22. Current Brent prices are below their August average level over the past three years, which ranged between $110/bbl and $113/bbl.

This parallels another EIA report, crediting the surge in U.S. crude oil production with a more stabilized global crude market:

Record-setting liquid fuels production growth in the United States has more than offset the rise in unplanned global supply disruptions over the past few years … U.S. liquid fuels production, which includes crude oil, hydrocarbon gas liquids, biofuels, and refinery processing gain, grew by more than 4.0 million barrels per day (bbl/d) from January 2011 to July 2014, of which 3.0 million bbl/d was crude oil production growth. During that same period, global unplanned supply disruptions grew by 2.8 million bbl/d. U.S. production growth, the main factor counterbalancing the supply disruptions on the global oil market, has contributed to a decrease in crude oil price volatility since 2011.

More simply, supply matters. Because crude oil is traded globally, every additional barrel of U.S. production going into that market has impact.

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economic-benefits  gasoline-prices  oil-production  hydraulic-fracturing  ethanol  epa34 

Mark Green

Mark Green
Posted August 29, 2014

New York Times: THREE RIVERS, Tex. — Whenever overseas turmoil has pushed energy prices higher in the past, John and Beth Hughes have curbed their driving by eating at home more and shopping locally. But the current crises in Ukraine and Iraq did not stop them from making the two-hour drive to San Antonio to visit the Alamo, have a chicken fried steak lunch, and buy fish for their tank before driving home to Corpus Christi.

“We were able to take a day-cation because of the lower gas prices,” said Ms. Hughes.

The reason for the improved economics of road travel can be found 10,000 feet below the ground here, where the South Texas Eagle Ford shale is providing more than a million new barrels of oil supplies to the world market every day. United States refinery production in recent weeks reached record highs and left supply depots flush, cushioning the impact of all the instability surrounding traditional global oil fields.

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hydraulic-fracturing  safe-operations  economic-benefits  oil-and-natural-gas-production 

Mark Green

Mark Green
Posted August 28, 2014

USA Today op-ed this week on hydraulic fracturing by the Natural Resources Defense Council’s Amy Mall is such an achievement in dishonesty it’ll take multiple posts to unpack it all. So stay tuned. For now, let’s look at the opening, tone-setting paragraph of Mall’s piece and the way it deploys a false choice to try to undercut public support for fracking, the very basis of America’s ongoing energy revolution. Mall writes:

We all want economic and energy security. But recklessly ramping up U.S. oil and gas production is not the answer.

Mall starts with a truth – in an otherwise seriously truth-challenged piece. Yes, Americans very much want economic and energy security.

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