PoliticoPro reports that a New York state advisory panel on hydraulic fracturing is taking flak from some environmentalists despite the fact a majority of the committee's members are ... environmentalists.

There's a simple explanation: Some of these folks just aren't all that interested in helping a process that will bring more natural gas - clean-burning, abundant, affordable - to U.S. Here's what David Braun, co-founder of United for Action, a New York-based anti-fracking group, told PoliticoPro:

"The environmental groups that are involved are too interested in regulating rather than serving their general purpose, which is to defend our resources, defend the people and to not push these sorts of things through."

Braun refers to hydraulic fracturing, the drilling technology that's revolut... more »

You've probably heard the line: The United States holds 2 percent of the world's oil reserves but consumes 25 percent of the world's oil. It's boilerplate rhetoric for folks who'd like Americans to think the United States is both running out of its own oil and using too much of everyone else's. President Obama has used this misleading line in two major policy speeches recently (here and here), and others have followed suit.

Let's focus on the first point. The 2 percent stat lacks context and a false impression results. The figure refers to "proved" reserves - that is, an official classification of oil "that has been discovered (and) is economically and commercially viable," says API's Marcus Koblitz. The McKelvey Diagram below illustrates how narrow the definition is:

U.S. Sen. Lisa Murko... more »

What's up with U.S. gasoline prices? Or maybe we should say what's down?

The Energy Information Administration (EIA) reports the average price for regular gasoline has declined the past couple of weeks to $3.85 per gallon, down from $4 at the beginning of the month - a twist since the Memorial Day weekend historically marks the start of the summer driving season, higher fuel demand and rising prices.

The reason? Simple supply-and-demand economics, says API Chief Economist John Felmy, who briefed reporters on crude oil and gasoline price fluctuations this week.

Start with the price of crude oil, which accounts for 68 percent of the cost of gasoline. Crude prices reached $113 a barrel, reflecting demand from recovering global economies. Gasoline prices rose with them. "It's a function of the... more »

Energy companies are reporting their quarterly financials this week, which is providing fodder for those who prefer to play politics rather than enact good policies. The typical line we hear from politicians is that company earnings are proof that a fair share is not being given to government, but focusing on just the bottom line obscures the true picture. Let's take one release as an example.

We see that ConocoPhillips reported first-quarter earnings of $3.0 billion or $2.09 per share. But a look at the full release shows that this $3.0 billion comes on total revenues of $58.25 billion - a 5.18% return. In other words, ConocoPhillips works hard for their money. We also see that ConocoPhillips paid $4.36 billion in taxes other than income taxes and paid or accrued $2.75 billion in income t... more »

OK, raise your hand if you find cupcakes simply irresistible. No shame. You're not alone. Now, for an appetite-inducing surprise: Cupcakes can teach everyone something about taxes and sound economic policy.

Stephen Comstock, who manages tax and accounting policy issues for API, has a new video that accounts for each dollar of oil and natural gas companies' net income before taxes. It's especially topical with earnings reports due out this week, which no doubt will bring calls for new energy taxes.

With the help of 100 carefully arrayed cupcakes, each representing one cent of that dollar of net income, Comstock explains that 41 go to governments in income taxes. The remaining 59 are distributed to shareholders - 17 cents of each dollar to mutual funds, 17 to individual or institutional inv... more »