One of the flimsier arguments deployed against the Keystone XL pipeline is that the Canadian oil sands crude it would deliver to U.S. refiners would be for export. We addressed that here, and others have chimed in as well. Basically, the United States doesn’t import crude and then turn around and export it. And the fact is the limited amount of finished products that are exported is good for U.S. jobs, good for U.S. trade.

Sound economic reasoning apparently is no barrier to a group of House Democrats who’re offering legislation that would block the export of oil and refined products made from the crude delivered by the Keystone XL (assuming the pipeline is built).

Passing a legislative wand over a bad idea doesn’t improve it. Once again, the facts:

• More than 90 percent of on-ro... more »

For a better understanding of oil and natural gas industry earnings, take a look at a pair of blog posts by ExxonMobil’s Ken Cohen (here and here), effectively countering criticisms of  the company’s earnings by those who also call for new energy taxes.

Earnings:

• 2011 global earnings: $41 billion.
• 2011 global revenues: $486.4 billion – from which costs (about $413.1 billion) and global income taxes (about $31 billion) are subtracted, leaving about $41 billion.

Perspective: Though ExxonMobil’s earnings are large, it earned only about 8.5 cents for every dollar of global revenue, which is less than half the earnings per dollar of sales for companies selling smart phones, computers, beverages and other commodities.

Taxes:

• 2011 U.S. tax expenses: $12.3 billion

Perspec... more »

Great post on The Hill’s Congress Blog by API’s Emily Kennedy, bringing attention to another vast U.S. resource: oil shale.

This is oil derived from sedimentary rock that contains a solid material (kerogen) that converts to liquid oil when heated. We’ve got enormous deposits in Colorado, Utah and Wyoming, with estimates that up to 800 billion barrels could be recoverable – almost three times Saudi Arabia’s proven oil reserves. Kennedy:

“The president is right: an all-of-the-above approach is the best path for securing America’s energy future. In oil shale, the United States has another vast energy resource that can’t be dismissed – one that would be best developed by industry and the marketplace, guided by clear policies and a stable regulatory regime.”

This week API is launching a series of hydraulic fracturing workshops in shale energy states to continue the conversation on industry guidelines and standards that will help lead to safe, efficient production of this valuable resource. API President and CEO Jack Gerard:

“These workshops emphasize the importance of our standards and certification programs, demonstrate how states are successfully regulating hydraulic fracturing and examine where we can improve. These are serious issues and the industry is committed to moving forward with responsible development of our nation’s energy from shale.”

API began the dialogue with an inaugural workshop in Pittsburgh attended by nearly 300 energy industry officials from around the country. Panel discussions emphasized the need for excellen... more »

New polling on the Keystone XL pipeline shows consensus in America isn’t always elusive. The United Technologies/National Journal Congressional Connection survey shows 64 percent of those polled believe the Keystone XL should be built:

“Even constituencies that are usually more likely to choose protecting the environment over promoting economic growth are, at this point, supportive of the project. A majority of Democrats, 51 percent, said they support building the pipeline, while just one-third opposed it. Sixty percent of those who live in urban areas said they back building the pipeline. Even 60 percent of respondents ages 18 to 29 support it.”

Here’s the National Journal’s chart, showing the different demographic splits:

Those are eye-opening numbers – consistent with a R... more »