Posted August 30, 2016
The United States leads the world in oil and natural gas production – and also reduction of carbon emissions. This global leadership largely results from private investment and innovation by the oil and natural gas industry, which has developed the advanced technologies needed to drive the American energy renaissance of the past decade. API President and CEO Jack Gerard discussed these issues and others during a conference call with reporters.
Posted July 14, 2016
CNBC has put out its annual ranking of America’s top states for business, an analysis based on a number of things including metrics for workforce, infrastructure, access to capital and quality of life. Another of those metrics, cost of living, caught our eye because energy was part of the calculation. Indeed, in CNBC’s ranking of the country’s 10 most expensive states to live in, the cost of energy to residents a key factor.
Five members of that dubious top 10 are New York, Connecticut, Massachusetts, Rhode Island and New Hampshire, and energy costs there are higher than they need to be. According to the U.S. Energy Information Administration (EIA), those states and neighbors Maine and Vermont all had costs for residential electricity and natural gas that exceeded national averages this past winter. Of course, these states are located in a part of the country where more energy infrastructure (see previous posts here and here) could positively impact energy costs.
A couple of charts show the cost being borne by consumers in those states, in part, because there’s inadequate natural gas pipeline infrastructure to meet home heating and power generation needs during peak winter months.
Posted July 6, 2016
Good to hear President Obama extolling some of the benefits of the U.S. energy revolution this week in North Carolina, starting with security and consumer benefits. Both are firmly linked to surging domestic oil production – which of course is why the United States leads the world in oil and natural gas output. The president:
“Remember when we were all concerned about our dependence on foreign oil? Well, let me tell you, we’ve cut the amount of oil we buy from other countries in half. Remember when the other team was promising they were going to get gas prices down in like 10 years? We did it. … So we have been able to shape an energy policy that’s good for families, good for your pocketbook.”
Indeed, producing more oil and gas here at home has had great impact on U.S. energy security and security overall. The United States is stronger in the world today because it is less dependent on others for imported energy. According to the U.S. Energy Information Administration (EIA), net imports stood at 4.6 million barrels of oil per day in 2015 – lower than any year since they were at 4.2 million barrels per day in 1985. EIA projects that in 2040 net crude imports will drop to about 1.5 million barrels per day.
Posted July 5, 2016
A newly expanded Panama Canal is open for business.
It’s noteworthy, as federal official say, that the enlarged canal can handle the vast majority of the world’s liquefied natural gas (LNG) tankers while significantly shortening travel time and transportation costs for U.S. LNG suppliers to key overseas markets. This is huge for U.S. LNG exports, offering another strong argument for swifter federal approval of pending LNG export projects.
Posted May 4, 2016
The progress the United States is making toward its climate goals starts with clean-burning natural gas.
Increased domestic natural gas production and its use is the primary reason the United States leads the world in reducing carbon emissions. It’s the keystone for a workable strategy to advance climate goals while sustaining economic growth and prosperity – the U.S. model. The U.S. Energy Department’s Christopher Smith, last week in Houston:
“A big part of the reduction in greenhouse gas emissions that we’ve been able to manage in the United States is due to the fact … we’ve got trillions of cubic feet of natural gas that we are going to be able to produce safely, and our domestic supply has gone from one of scarcity to one that has enabled us to use more natural gas in baseload power consumption.”
Posted March 8, 2016
The oil and natural gas industry will offer employment opportunity for women and minorities over the next couple of decades. So says a new report by consulting firm IHS, which projects significant job gains for women, African Americans and Hispanics between now and 2035.
IHS estimates that by 2035 Hispanics and African Americans will hold nearly 40 percent of the 1.9 million direct jobs in the oil and natural gas and petrochemical industries, with 16 percent of the jobs being held by women.
Posted March 7, 2016
You know, because of the broad benefits of the U.S. energy revolution – including higher domestic production, more energy security, lower costs for consumers and manufacturers – energy as an issue hasn’t been the kind of election-year focal point it might be if the country instead was staring at energy scarcity, higher costs and growing insecurity in the world – basically, America’s energy reality before the shale energy revolution launched by safe hydraulic fracturing and modern horizontal drilling.
That’s fine. We gladly welcome the new energy reality: America as the world’s No. 1 oil and natural gas producer, consumers with more disposable income thanks to lower gasoline and energy costs and businesses looking to locate and expand in the United States because abundant, more affordable energy.
Posted March 4, 2016
Just recently saw this article on National Geographic.com, suggesting the United States made a significant shift in its energy economy in 2015:
Consider what happened last year alone. The amount of electricity from coal-fired power plants hit a record low while that from natural gas generators hit a record high. Also, renewable energy added the most new power to the electric grid, and annual carbon emissions reached a 20-year low.
First, a reminder that new power capacity added to the grid doesn’t translate directly to new power. Below, U.S. Energy Information Administration (EIA) data shows that in terms of electricity generation change (from 2014 to 2015) at utility-scale facilities and including distributed solar, natural gas led in net generation:
That’s not knocking renewables, just an illustration of today’s energy reality and a reminder of the oft-overlooked energy, economic and climate benefits accruing to the United States from increasing natural gas use.
Posted March 2, 2016
Last year, when federal officials released the proposal for the next five-year offshore drilling plan, we said the draft had some positive aspects but fell short of the kind of strategic offshore planning that would adequately serve America’s role as an energy superpower. We also noted strong support for offshore development by mid-Atlantic states, where operations could occur under the draft plan.
Fast-forward to this month, with the Bureau of Ocean Energy Management (BOEM) expected to reassess a plan that would be the blueprint for offshore energy development from 2017 through 2022. The need for a robust offshore leasing plan remains critically important – and the plan should retain the single Atlantic lease sale that was included in BOEM’s draft.
Posted February 5, 2016
Our industry is committed to helping America’s veterans who’re looking for civilian jobs after finishing their military service. This week API and Vets4Energy unveiled a new web toolthat should help veterans match their skill sets with those needed in the energy industry. Likewise, the site will help employers looking for military occupations that could factor into their hiring needs.
The new web tool is timely, with more than 1 million military service members expected to transition to civilian life over the next four years, according to the new site. More than 8.4 million military veterans are under the age of 60.