Posted November 24, 2014
After decades of declining domestic oil production, the country is in the middle of an unexpected boom. Driven by new technology that reaches previously inaccessible reserves, production has soared by millions of barrels a day. This surge has been a key factor driving oil prices down.
So, should U.S. oil companies be allowed to sell that oil overseas?
Because of a restriction dating back to the oil scares of the 1970s, producers for the most part can’t export their oil. The export ban was part of a series of laws passed to ease supply concerns and prevent U.S. producers from skirting price controls by selling crude into the world market at higher prices.
Posted November 21, 2014
USA Today (Manhattan Institute’s Mark Mills): When the newly elected Congress convenes in January, energy will be a priority. In fact energy is the "foundation" action item according to the just-released roadmap from Speaker of the House John Boehner. So this is a particularly good time to map out just how different the energy world is today, and will be in the future.
Four decades ago, when America's extant energy policy paradigm was forged, the U.S. was the world's fastest growing major energy user in an environment of resource dependency and depletion. The facts have since flipped: America is now the fastest growing energy producer, while nearly all net new demand takes place elsewhere.
In this context, consider the implications for America, and the world, of five key numbers.
Posted November 19, 2014
Tapping the energy resources off America’s coasts could improve our economy, our energy security and create thousands of jobs. Two new studies highlight the remarkable boost to job creation, U.S. energy security, domestic investment, and revenue to the government that lies within the Pacific Outer Continental Shelf (OCS) and the Eastern Gulf of Mexico.
API’s Group Director Erik Milito and the National Ocean Industries Association’s Randall Luthi outlined the studies for reporters during a conference call today. Milito:
“The oil and natural gas industry is a rare bright spot in our economy, and the ability to safely develop new offshore resources is critical to America’s continued energy security and job growth.”
Posted November 19, 2014
WYTV (ABC, Ohio): The Utica Shale Academy, located inside Southern Local Schools, held a special demonstration Tuesday for students and board members.
Austin Sadler, 17, is the only senior in the academy. He hasn’t wasted any time obtaining three certifications needed to get a job in the oil and gas industry after graduation.
Sadler said he has learned how to case a well, install pipe and tubing and understands how gas and oil is extracted from the ground. The first certification he received was for safety, called the Rig Pass.
“It allows me to be safely on any rig. I can be on a rig and know what I am doing and what not to do,” Sadler said.
Posted November 18, 2014
Posted November 17, 2014
The Economist: To find out how much energy security has mattered in the Pacific’s recent history, ask the Japanese. At the museum of the Yasukuni Shrine in Tokyo, which honours the country’s war dead (sometimes controversially), an exhibit suggests, with a jarring note of self-justification, that an American naval blockade against Japanese oil imports in 1941 triggered the Pacific war.
Seventy years later a tsunami that swooshed in from the Pacific and knocked out the Fukushima Daiichi nuclear power station led to the closure of Japan’s 54 nuclear reactors. Parts of the country, which is a greedy consumer of electricity, were left practically powerless. Huge tankers full of natural gas, heading for terminals dotted along Japan’s Pacific coastline, eventually got the country up and running again. In 2012 Japan consumed 37% of the world’s liquefied natural gas (LNG).
Posted November 13, 2014
Bipartisanship was the unifying theme from lawmakers and panelists during an event on the intersection of energy and policy earlier today, hosted by The Hill. With the midterm elections over, it’s clear “energy ultimately prevailed,” API President and CEO Jack Gerard said, starting the discussion of what the future holds for energy in the next Congress. Gerard:
“Energy should not be a partisan issue, and while the election played out in a Republican/Democrat-type dynamic, ultimately we believe energy prevailed. Energy was a key issue in a lot of races across the country and it’s clear the American public is growing in their support of energy, especially oil and natural gas.”
Indeed, the U.S. – and the 114th Congress -- has a unique energy opportunity. When looking back even just five or six years ago, no one predicted America’s energy revolution after decades of energy scarcity. Fast-forward to today: We live in an era of rich abundance and ample oil and natural gas resources. America is now in a position to become the world’s energy superpower thanks to industry technology and innovation.
Posted November 12, 2014
EIA Today in Energy Blog: Increased natural gas production is projected to satisfy 60% to 80% of a potential increase in demand for added liquefied natural gas (LNG) exports from the Lower 48 states, according to recently released EIA analysis. The report, Effect of Increased Levels of Liquefied Natural Gas Exports on U.S. Energy Market, considered the long-term effects of several LNG export scenarios specified by the Department of Energy's Office of Fossil Energy (FE). The study also considered implications for natural gas prices, consumption, primary energy use, and energy-related emissions. Effects on overall economic growth were positive but modest. A discussion of caveats and limitations of the analysis is also included.
Posted November 11, 2014
President Barack Obama has also joined the chorus, claiming in a recent speech at Northwestern University that America is a world energy leader because “right off the bat” his administration “upped our investments in American energy.”
In reality, we’ve become the world’s leading natural gas producer and soon-to-be leading oil producer despite, not because of, White House policies.
Posted November 10, 2014
Forbes: The return of the U.S. as an energy superpower will not be a short-term event with the economic benefits likely to last “at least two generations”, according to the latest research from Citi.
That is one of the key findings in a report from the commodities team at the New York-based bank.
Titled “Energy 2020 Out of America” the 96-page document paints a picture of significant change flowing from increased oil and gas production in the U.S. including a dramatic reduction in the country’s current account deficit and a sharp increase in the value of the dollar.