Posted January 27, 2014
Free America’s Energy Future: Drop Washington’s Counterproductive Oil and Natural Gas Ban
Forbes (Doug Bandow): For years people have been told to expect a dismal energy future. But because of rapid free market innovation, Americans now can look forward to a future of energy abundance. The U.S. could even become a leading exporter—if Washington gets out of the way.
Successive presidents and Congresses imposed controls, approved subsidies, created bureaucracies, and issued proclamations. The most common commitment was to achieve “energy independence.” But President Ronald Reagan set the stage for today’s energy advances by unilaterally eliminating oil price controls and pushing Congress to drop natural gas price and use restrictions.
His successors, however, have regressed back to expensive social engineering. George W. Bush declared war on the common light bulb. Barack Obama poured billions into the coffers of well-connected alternative energy firms, several of which, such as Solyndra, have gone bankrupt. And everyone continued to support the authoritarian Gulf kleptocracies, led by Saudi Arabia, to ensure access to imported oil.
Yet an energy revolution is underway. Observed Mark P. Mills, an Adjunct Fellow at the Manhattan Institute, “The game-changing technologies that have emerged involve hydrocarbons: natural gas, oil, and coal.” Major advances have been made in locating and extracting resources—such as horizontal drilling and hydraulic fracturing, or fracking—and operating in more distant and hostile environments.
Read more: http://onforb.es/1f7kRXN
Posted January 27, 2014
With the State of the Union address scheduled tomorrow night, let’s look at how policy goals in President Obama’s past annual speeches to Congress fit with oil and natural gas development. It turns out the fit is good – very good.
For example, in the 2010 State of the Union the president called jobs his No. 1 priority and said American business would always be the “true engine of job creation.” He also applauded the improving health of the retirement funds supporting the future hopes of so many Americans. Oil and natural gas is playing a key role with both.
Posted January 23, 2014
What The Captain & Tennille Teach Us About Energy Policy
Forbes: Love apparently didn’t keep the ’70s pop duo Captain & Tennille together.Toni Tennille has filed for divorce from Daryl Dragon after 39 years of marriage. Just as the pair’s most famous standard now rings false, so does our 1970′s notion of energy security. For the past 40 years, U.S. energy policy has been married to the idea of scarcity. Following the oil embargoes of the 1970s, we built policies, from export bans to ethanol mandates, based on the idea that we would forever be at the mercy of other oil-producing nations.
The hydraulic fracturing boom, however, has changed all that. North America is undergoing an energy renaissance. Domestic crude oil production has reached parity with imports, and the International Energy Agency predicts the U.S. may become the world’s largest energy producer as early as next year. Yet our policies remain stuck in the dark ages of scarcity. Lawmakers on both sides of the aisle are resisting efforts to lift the 1970s-era ban on crude exports, citing issues of “energy security.”
As Sen. Edward Markey, D-Mass., told the Wall Street Journal: “If we overturn decades of law and send our oil to China and other markets, oil companies might make more money per barrel, but it will be American consumers and our national security that will pay the price.”
There’s a difference between ensuring our energy security and hoarding resources. With our newfound abundance, security comes through continued development of domestic reserves.
Read more: http://onforb.es/KMM7kV
Posted January 23, 2014
The U.S. energy revolution continues to reshape America’s energy outlook for the better. Thanks largely to shale energy reserves and advanced hydraulic fracturing and horizontal drilling, the U.S. Energy Information Administration’s 2014 Annual Energy Outlook estimates domestic oil production will approach 9.6 million barrels per day by 2016 – a level of output not seen since 1970. EIA also projects that U.S. liquid fuels net imports as a share of consumption will decline to about 25 percent in 2016, down from a high of 60 percent in 2005. Both are great pieces of news.
Posted January 8, 2014
Two big stories have caught our attention the past two days. First, America’s trade deficit has sunk to a four-year low thanks to falling U.S. imports and increasing exports:
- America’s Trade Deficit is Shrinking. Thank Fracking. http://wapo.st/1cB2eMg
- U.S. Growth Picture Brightens as Exports Hit Record: http://on.wsj.com/K71y72
- Trade Deficit Falls to 4-Year Low: http://lat.ms/1cP1AYf
- How the Booming Oil Patch Helps U.S. Trade: http://buswk.co/1lBmfXY
And second, the growing number of voices calling for ending the decades-old ban on U.S. crude oil exports:
- Murkowski Joins Growing Chorus Calling to Lift Ban on Crude-Oil Exports: http://bit.ly/1eHRzze
- Is Free Trade in Energy Finally on the Horizon? http://bit.ly/1cZzu0W
- U.S. Chamber CEO – End Ban on Crude-Oil Exports: http://bit.ly/1dgBjZ3
Posted January 2, 2014
Shale-Oil Boom Puts Spotlight on Crude Export Ban
Wall Street Journal: The U.S. government virtually banned the export of crude oil in the wake of the mid-1970s energy crisis. But as America pumps more crude, 2014 could be the year those constraints are lifted.
For decades, even discussing the possibility of exporting domestic oil was a political nonstarter in Washington. Now, surging U.S. production has led to the beginning of a glut along the Gulf Coast, home to the largest refinery complex in the world. Too much crude is driving down prices there, making producers eager to export some of their oil to places like Europe where prices are higher.
Read more (subscription publication): http://on.wsj.com/1d2nGfN
Posted December 30, 2013
Vaclav Smil’s Graph of the Year: The Natural Gas Boom
Washington Post: "[There are] too many choices possible, but here is one epoch-making trend: as the post-2008 rise of hydraulic fracturing drove U.S. natural gas prices down and increased the supply (in 2013 the U.S. will be again the world’s largest natural gas producer) oil and gas prices, traditionally moving in tandem, have diverged significantly. History is being made."
Posted December 26, 2013
Though there are compelling, Economics 101-type reasons the U.S. should lift its dated ban on crude oil exports and help clear the way for the export of U.S. liquefied natural gas (LNG), opponents of both continue to misunderstand the way global energy markets work – as well as the significant benefits accruing to the United States from free trade.
You’ve probably heard the rhetoric: Keep American oil and natural gas locked up here at home for U.S. consumers.
This misses the essential fact that crude oil is traded (and priced) globally, and that limiting LNG exports will only limit U.S. participation in an important, developing market – while effectively denying our country the infusion of overseas wealth in exchange for valuable American commodities.
Posted December 20, 2013
Momentum is building for revisiting decades-old restrictions on U.S. exports of oil and natural gas. For months we’ve talked about the benefits of exporting liquefied natural gas. Now the U.S. ban on crude oil exports also is being discussed. Earlier this month Energy Secretary Ernest Moniz said much has changed since the crude oil export ban was created:
“Those restrictions on exports were born, as was the Department of Energy and the Strategic Petroleum Reserve, on oil disruptions. There are lots of issues in the energy space that deserve some new analysis and examination in the context of what is now an energy world that is no longer like the 1970s.”
Meanwhile, the Wall Street Journal (subscription required) and the Washington Post have called for an end to the crude oil export ban. With the U.S. Energy Information Administration’s newest outlook projecting continued growth in U.S. production of oil – nearing the 1970 record of 9.6 million barrels per day – and natural gas, discussion of exporting American energy makes economic sense.
Posted December 13, 2013
Bloomberg Poll: 56 Percent Say Keystone XL Would Help U.S. Energy Security
Bloomberg Businessweek: More Americans view the Keystone XL oil pipeline as a benefit to U.S. energy security than as an environmental risk, even as they say Canada should do more to reduce greenhouse gases in exchange for approval of the project.
A Bloomberg National Poll shows support for the $5.4 billion link between Alberta’s oil sands and U.S. Gulf Coast refineries remains strong, with 56 percent of respondents viewing it as a chance to reduce dependence on oil imports from less reliable trading partners. That compares with the 35 percent who say they see it more as a potential source of damaging oil spills and harmful greenhouse gas emissions.
Read more: http://buswk.co/1gwdBJq