From Politico:

"New York Senate Democrat Chuck Schumer wants Saudi Arabia to pledge to make up for any missing Iranian supplies, and he wants them to do it now, rather than waiting until summer. 'A public commitment will cause the price of oil to drop right away,' he said Tuesday."

Senator Schumer is correct, oil markets are forward looking and a public commitment to development matters.  But rather than Saudi Arabia, let’s look at what the U.S. is signaling.

1. Continued reduced production on Federal areas in the Gulf of Mexico.
2. 87% of our offshore acreage being placed off-limits.
3. Federal permits lagging in offshore areas.
4. Federal permits lagging in onshore areas.
5. A million barrels a day from ANWR languishing for decades.
6. The U.S. blocking upwards of 800,00... more »

Some perspective on opposition to the Keystone XL pipeline and the energy from Canadian oil sands the pipeline would deliver to U.S. refiners. Politicians and activists bad-mouthing the latest environmental review of the pipeline project by the State Department are taking issue with three impact assessments, not just one.

Last week's report reiterated environmental reviews in April 2010 and this past April. The government now has said three times that the 1,700-mile pipeline would pose only minimal environmental risk during construction and operation.

Those who don't like the message went after the messenger. "By concluding that the pipeline will have minimal environmental impact, absent the expert opinion from our government's wildlife experts, it appears that the State Department has not... more »

It's mid-afternoon, and the sky is darkening with the arrival of summer showers, seemingly from every direction. Tall grasses blanketing the hillocks and swales of Wapisiw Lookout ripple in the wind as drops patter down. In the distance, a 2-year-old black bear cub bumbles across what is actually a 550-acre environmental project - in the heart of Canada's oil sands region. Go figure.

The fact is lots of people have done lots of figuring on the environment at Suncor's oil sands operation near Fort McMurray, Alberta, about 270 miles northeast of Edmonton. More on Canadian oil sands in future posts, but a big part of what's happening along the Athabasca River is the relationship that development of a valuable energy resource can have with the environment.

Suncor carefully recycles its water a... more »

So, just how do we get to energy security - to the point where, by 2030, 92 percent of America's liquid fuel needs is supplied by a combination of U.S. and Canadian sources? Here's how.

Start with where we are now. According to the Energy Information Administration (EIA), the United States uses slightly more than 19 million barrels per day (mb/d) in liquid fuels - including oil, heating oil, diesel and biofuels. Of that total, 8.5 mb/d (45 percent) comes from U.S. sources, 2.33 mb/d (12 percent) from Canada and 7.2 mb/d (38 percent) from the rest of the world. Biofuels account for about 1 mb/d (5 percent).

With the right policies, by 2030 the U.S. can account for 62 percent of its liquid fuel needs and Canada 16 percent. Add in the EIA's projection that biofuels will grow to 14 percent, a... more »

While the administration wrestles with itself over approval of the Keystone XL pipeline, some important points to consider:

• Within a few years of its completion, Keystone XL would deliver upwards of 830,000 barrels of oil per day (b/d) from Canada's oil sands region to U.S. refiners, creating tens of thousands of U.S. jobs.
• The Energy Information Administration reports that with the additional 830,000 b/d, U.S. production and secure, reliable Canadian imports would supply 57 percent of our crude oil needs - up from 51 percent in 2010.
• In a larger context, the pipeline would be part of an access strategy that could supply 92 percent of this country's liquid fuel needs by 2035.

Given the prospect of access to that much oil from a good neighbor and ally, you'd think government approval woul... more »