The People of America's Oil and Natural Gas Indusry

Energy Tomorrow Blog

100-days  air-pollution  air-quality  economic-impacts  job-growth  ozone-standards  regulations  wyoming 

Mark Green

Mark Green
Posted April 21, 2017

We’ve argued before that more restrictive ozone standards imposed by EPA in late 2015 were unnecessary, because ambient ozone levels were declining under the 2008 standards.

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pipeline-safety  natural-gas  regulation  economic-impacts  infrastructure 

Mark Green

Mark Green
Posted July 7, 2016

We frequently post on the potential risk to U.S. energy production and the benefits the American energy revolution is generating for the economy and individual households from the administration’s regulatory push and government red tape (see herehere and here). There might not be a better current example of the potential regulatory impact on U.S. energy than new rules for natural gas transmission and gathering lines proposed by the Pipeline and Hazardous Materials Safety Administration (PHMSA).

Consider: According to a study by ICF International, measuring the impact of PHMSA’s proposals, for 2,200 small pipeline companies across the country the annual cost of complying with the new regulations would come close to what the companies earn from gathering line fees. That’s impact – impact on small businesses and impact on energy development associated with the work those companies do.

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ozone  regulation  epa34  economic-impacts  air-quality 

Jack Gerard

Jack Gerard
Posted June 15, 2016

To comply with standards approaching or below naturally occurring levels of ozone, states could be required to restrict everything from manufacturing and energy development to infrastructure projects like roads and bridges. Even if job growth were strong, saddling states with unachievable requirements would be questionable policy at best. In an economy still struggling to add jobs, new ozone regulations that impact such a wide range of job creators – and promise little to no public health benefit – make no sense.

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renewable-fuel-standard  rfs34  gasoline-prices  epa34  economic-impacts  e1534 

Mark Green

Mark Green
Posted May 27, 2016

When you head out for your Memorial Day drive, consider the current price of gasoline – the U.S. average retail price of $2.30 a gallon, which the U.S. Energy Information Administration (EIA) says is 47 cents lower than at the same time last year and the lowest average price just before a Memorial Day weekend since 2009. 

Now, let’s all thank the U.S. energy revolution, which is playing a big role in consumer benefits, like those seen at the pump. EIA notes that lower gasoline prices reflect lower crude oil prices. And the global crude market wouldn’t be where it is without higher U.S. crude production. 

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renewable-fuel-standard  rfs34  ethanol  economic-impacts  consumers 

Mark Green

Mark Green
Posted February 23, 2016

When Congress and the president acted late last year to end the decades-old ban on domestic crude oil exports, Washington showed it could generate the consensus to update energy policy so it matches America’s new energy reality, a reality of abundance created by surging domestic oil production. The same kind of change is needed on the broken Renewable Fuel Standard (RFS).

We saw how the crude oil exports ban buckled under the weight of economic research and reason, both of which argued that allowing U.S. oil to reach global markets would be good for America and American consumers. In the case of the RFS, there’s a compelling opportunity to protect U.S. consumers from potential harm wrought by a bad public policy.

Step No. 1 is a scheduled hearing this week on the RFS by the Senate Environment and Public Works Committee. Witnesses include EPA and U.S. Energy Information Administration officials. Frank Macchiarola, API group director of downstream and industry operations, discussed the stakes in the RFS debate during a conference call with reporters. The main point: The RFS is mismatched for the new era of U.S. energy abundance.

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crude-oil  taxes  economic-impacts  consumers  president-obama 

Mark Green

Mark Green
Posted February 16, 2016

The president’s $10 per barrel oil tax proposal has been out for about a week now, and the analysis from a number of experts – both in terms of politics and economics – could be boiled down to the social media acronym “smh,” which stands for “shaking my head.”

Political analysis first: “The president perennially proposes repealing the oil industry tax credits which Congress annually ignores,” Benjamin Salisbury at FBR Capital Markets toldBloomberg. “It seems overwhelmingly likely that this fee meets the same fate.” ClearView Energy Partners’ Kevin Book said there are “near-zero odds that the Republican-led Congress will grant the president’s request.”

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liquefied-natural-gas  lng-exports  natural-gas  economic-impacts 

Mark Green

Mark Green
Posted February 1, 2016

Iran’s plan to export liquefied natural gas (LNG) within two years is what you call a market signal, one that should cause U.S. policymakers to reconsider the ponderous pace with which proposed U.S. LNG export projects are gaining federal approval. The Wall Street Journal reported:

Iran is pushing to find new ways to extract and export its vast natural-gas reserves, including developing facilities to liquefy the commodity and ship it to Europe in two years now that western sanctions are no longer in place, according to a top Iranian official. Iran holds the world’s largest reserves of natural gas, but has long lacked the export infrastructure of competitors like Russia and Qatar. … Tehran is exploring several options to help the country “join the international LNG club,” said Alireza Kameli, Managing Director of National Iranian Gas Export Co., in an interview here.

Options for Iran include restarting its own advanced LNG export project that was halted in 2012 because of the western sanctions; building a pipeline under the Persian Gulf to Oman, which has LNG export facilities Iran might be able to use; and the construction of floating LNG facilities. Iranian officials say the country could export about 30 billion cubic meters (more than 1 trillion cubic feet) to the European Union long-term, the Journal reported.

While experts may disagree over how soon Iranian LNG exports could reach global markets, it makes sense for the United States – the world’s leading natural gas and oil producer – to capitalize on its natural gas abundance by speeding up federal approvals for domestic LNG exports to non-Free Trade Agreement countries. While a number of LNG export projects have received the go-ahead from Washington in the past couple of years, final non-FTA authorizations for more than 20 facilities remain under review at the Energy Department.

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oil-and-natural-gas-jobs  solar-energy  economic-impacts  oil-and-natural-gas-production 

Mark Green

Mark Green
Posted January 14, 2016

If you believe America is best served by taking a true, all-of-the-above approach to energy – and we do – there’s not a lot of value in getting into a donnybrook over which energy sector employs the most people. America needs all of its energy sources and all of each energy sector’s jobs. That said, let’s set the record a little straighter in the wake of a recent report by the Solar Foundation.

The solar report trumpets 209,000 workers employed by the solar industry – including installation, manufacturing, sales & distribution, project development and “all others.” The report compares that figure with 187,000 people employed in just the oil and natural gas industry’s extraction segment, according to the Bureau of Labor Statistics (BLS), an apples-to-oranges comparison that could leave a wrong impression.

We looked at the comparison and figured something is missing.

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ozone  regulation  epa34  air-quality  economic-impacts  jobs 

Mark Green

Mark Green
Posted October 2, 2015

A number of Americans may look at some of the mixed reaction to the Obama administration’s release of new, more restrictive ozone standards and conclude that if industry and business groups and environmental activists all are unhappy with the final standards, then the administration must be congratulated for splitting the difference.

As measured as that sounds, it’s simply the wrong approach for setting air quality policy – and lots of Americans are likely to be caught up in the impacts.

As noted in this post, changing national ozone standards from the current 75 parts per billion (ppb) to 70 ppb could impact job growth in nearly one-third of the country’s counties or county equivalents, according to an API analysis of EPA data. Instead of 217 counties out of compliance with ozone standards, 958 could be in violation and potentially subject to constraints that could affect business expansion, infrastructure development, transportation projects and other activities in those localities. Shorter: These impacts could be coming to a neighborhood near you – affecting economic growth and job creation.

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ozone  regulation  economic-impacts  jobs  american-petroleum-institute  epa34 

Mark Green

Mark Green
Posted October 1, 2015

Here’s probably the most important thing to know about new, more restrictive ozone standards announced by the Obama administration: They could impact job growth in nearly one-third of all counties or county equivalents in the United States, according to a recent API analysis of EPA data. That’s 958 counties – up from just 217 under the current standards – projected to be in non-attainment with ozone standards set at 70 parts per billion (ppb).

So, unless Congress acts (as it should), get ready. These new standards will pretty much hit a lot of Americans right where they live – potentially hurting jobs, chilling investment and curbing business activity, for little or no public health benefit.

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