Higher Supply = Higher Prices or NRDC Flunks Econ 101

Who could have imagined the day would come when the Natural Resources Defense Council (NRDC) crafted a report focused on relieving Americans’ “pain at the pump”? 

But there it is: the same group that once stated “there’s nothing we can do to control the price of gas in America” released a paper this week outlining the ways in which Keystone XL pipeline is apparently poised to make prices at the pump go higher – as if higher gas prices were something the group actually opposed. 

Of course, we know the truth about NRDC’s position on gas prices – that they support policies that increase the cost of fossil fuels to discourage their use. What’s tougher, though, is determining how the group came up with a methodology allowing it to argue, in effect, that greater supply of secure sources of... more »

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Report: Industry Commitment to Workplace Health, Safety Paying Off

According to a new API report, the U.S. oil and natural gas industry’s workplace safety record measures favorably with the private sector – reflecting the industry’s commitment to providing safe and healthy work environments for its employees.

The report includes 18 charts and tables comparing non-fatal injury and illness rates for the oil and natural gas industry (and its various sectors) to the rates of other U.S. industries and sectors. The charts and tables are based on data from the Bureau of Labor Statistics’ Survey of Occupational Injuries, Illnesses, and Fatalities, the Bureau of Ocean Energy Management, Regulation and Enforcement and the Pipeline Hazardous Materials Safety Administration. You can go to the report to learn more about the definitions, classifications and methodo... more »

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Massachusetts, Jobs and the Shale Energy Revolution

Interesting report in the Boston Globe about how a ripple of economic benefits from shale natural gas development is reaching a non-energy state, Massachusetts.

Clean Harbors, Inc., a Norwell, Mass., company that delivers environmental services, estimates that demand for its know-how from shale-rich Pennsylvania generated 25 percent of its $2 billion in revenues last year – a number it expects to grow this year. “We just see a tremendous market that needs all of the services we provide,” says Chief Executive Alan McKim, who figures his company’s shale-related business is growing about 25 percent a year. “In the U.S., there’s huge potential,’’ McKim says. The Globe adds:

“Clean Harbors is just one example of how the unlocking of natural gas reserves hundreds of miles away promises... more »

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Apples, Oranges, and the Oil Sands

The Congressional Research Service (CRS) added to the pile of conflicting well-to-wheels analyses with its report released this week, “The Life Cycle Assessment of Canadian Oil Sands,” written in the context of the Keystone XL project. Just like its predecessors, CRS wades into the world of assessment comparisons, choosing previously-published reports with seemingly common variables to come up with an emissions calculation slightly different from the rest. The problem, however, is that more often than not, apples are compared to oranges and policymakers are misled.

The report concludes that the Canadian oil sands emit 14 to 20 percent more greenhouse gases (GHGs) in a well-to-wheels (WTW) comparison with other crude oils imported into the United States “despite differences and input as... more »

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Generation Next: Securing Tomorrow’s Energy Industry Workforce

Recently, ExxonMobil Development Co.’s L.M. Tillman addressed a gathering at the Offshore Technology Conference on the subject of energy industry employment. Tillman, vice president of engineering, said that economic growth in the developing world will drive the demand for energy and with it, the demand for energy workers. Here’s a follow-up Q&A with Mr. Tillman on energy employment, opportunities for younger workers and industry’s efforts to secure the next generation of workers.

Q: Where are the best opportunities to work in the industry, and what kind of skill sets are needed to land jobs and advance rapidly?

A: For the industry to be able to meet the energy challenge, it needs engineers and scientists who can push technology and innovation, analyze problems and develop creative s... more »

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