Posted May 6, 2015
BloombergBusiness: The U.S. will become one of the world’s largest oil exporters if domestic production continues to surge and policy makers lift a four-decade ban that keeps most crude from leaving the country, a government-sponsored study shows.
America would be capable of sending as much as 2.4 million barrels a day overseas in 2025 if federal policy makers were to eliminate restrictions on most crude exports, an analysis by Turner, Mason & Co. for the Energy Information Administration shows. That would make the U.S. the fourth-largest oil exporter, behind Saudi Arabia, Russia and the United Arab Emirates, based on 2013 EIA data. The report assumes domestic output rises by 7.2 million barrels a day from 2013.
The analysis is part of a series of studies the U.S. government is performing following a 71 percent surge in domestic oil production over the last four years. Drillers including Harold Hamm of Continental Resources Inc. and John Hess of Hess Corp. have been calling on the government to lift the ban on crude exports as they pump more light oil out of shale formations from North Dakota to Texas.
Posted May 4, 2015
USA Today: The U.S. economy may not be benefiting as much as anticipated from the collapse in oil prices over the past 10 months. In fact, for oil-producing states, the decline of some 50% is taking a toll.
But one thing seems clear: The nation as a whole is nowhere near as susceptible to sharp swings in oil prices — one way or the other — as it was for decades.
That was the message from Jason Furman, the chairman of the White House Council of Economic Advisers and President Obama's chief economist, at a New York forum held by the Columbia University Center on Global Energy Policy.
Furman spoke one day before the U.S. government reported an annual growth rate of just 0.2% for the nation's gross domestic production from January through March, down substantially from a 2.2% pace in the fourth quarter of 2014.
Among the factors was consumer spending, which rose by only 1.9% in the first quarter compared with a 4.4% increase in the previous quarter.
Consumers proved slow to spend their savings from lower gasoline prices, savings that economists estimate at $700 per household, as Furman pointed out. But that reluctance may change soon, to the benefit of the nation's economy, he added.
Posted April 23, 2015
Posted March 17, 2015
Reuters: Lifting a 40-year-old U.S. ban on crude exports would create a wide range of jobs in the oil drilling supply chain and broader economy even in states that produce little or no oil, according to a report released on Tuesday.
Some 394,000 to 859,000 U.S. jobs could be created annually from 2016 to 2030 by lifting the ban, according to the IHS report, titled: "Unleashing the Supply Chain: Assessing the Economic Impact of a U.S. crude oil free trade policy."
Only 10 percent of the jobs would be created in actual oil production, while 30 percent would come from the supply chain, and 60 percent would come from the broader economy, the report said. The supply chain jobs would be created in industries that support drilling, such as oil field trucks, construction, information technology and rail.
Posted February 25, 2015
Posted February 12, 2015
In a democratic republic like ours, the legislative branch is the voice of the people. Throughout the long – too long – debate over the Keystone XL pipeline, the White House has used politics to stymie a conclusion on the matter. But no more.
House approval of a Senate bill advancing the pipeline will require President Obama to finally decide. Bipartisan majorities in both houses of the Congress of the United States have spoken. The American people, through their elected representatives, have spoken. The president should listen.
Unfortunately, the White House has signaled that he won’t, that he will veto the Keystone XL bill. It would make a mockery of post-Election 2014 assurances from the president that he would work with Congress to accomplish substantive things for the American people. Substantive things like: 42,100 jobs that the U.S. State Department says would be supported by the pipeline’s construction, $2 billion in workers’ pockets and $3.4 billion added to U.S. GDP, according to State’s report, and 830,000 barrels of oil from Canada and the U.S. Bakken region – North American oil that would strengthen U.S. energy security
All of the above and more clearly make the construction of the Keystone XL pipeline in the national interest.
Posted February 10, 2015
EIA Today in Energy: The increase in U.S. shale and tight crude oil production has resulted in a decrease of crude oil imports to the U.S. Gulf Coast area, particularly for light-sweet and light-sour crude oils. These trends are visualized in EIA's crude import tracking tool, which allows for time-series analysis of crude oil imported to the United States.
Historically, Gulf Coast refineries have imported as much as 1.3 million barrels per day (bbl/d) of light-sweet crude oil, more than any other region of the country. Beginning in 2010, improvements to the crude distribution system and sustained increases in production in the region (in the Permian and Eagle Ford basins) have significantly reduced light crude imports. Since September 2012, imports of light-sweet crude oil to the Gulf Coast have regularly been less than 200,000 bbl/d. Similarly, Gulf Coast imports of light crude with higher sulfur content (described as light-sour) have declined and have been less than 200,000 bbl/d since July 2013.
Posted February 9, 2015
In oil towns like Williston and Watford City, massive amounts of infrastructure have been built in just the last three years. Here's a look at some of the bigger projects:
People: Populations in once-small towns soared as people from around the country (and the world) migrated to the area for jobs. Williston Mayor Howard Klug says that the city of under 15,000 in the 2010 census now has a "serviceable population of 60,000 to 70,000."
Posted February 2, 2015
Posted January 31, 2015
The long trail of “process” excuses for not approving the Keystone XL pipeline is coming to an end.
Five U.S. State Department reviews – all of them basically saying Keystone XL won’t significantly affect the environment – done.
Public hearings – done.
A new pipeline route through Nebraska – done.
By Monday, federal agencies must weigh in on whether Keystone XL is in the national interest. It is, as we’ll get into below.
The point is, after more than six years of process and review by the White House, we’ve come to the end of the processing and the reviewing. The administration stretched to 76 months a pipeline approval process that typically takes 18 to 24 months. It turned Keystone XL into a political football, punted here and there for reasons that clearly weren’t in the national interest.