The People of America's Oil and Natural Gas Indusry

Energy Tomorrow Blog

crude-oil-prices  global-markets  gasoline-prices  oil-production  access 

Dean Foreman

Dean Foreman
Posted May 10, 2018

The facts that crude oil prices are up 9 percent since the end of March and that crude oil currently accounts for 57 percent of the consumer’s price for gasolinemean that consumers have felt the impact at the pump of relatively large and sudden changes. As domestic crude oil prices recently increased above $70 per barrel for the first time since November 2014, let’s revisit current oil market fundamentals and other factors that have elevated prices. 

By understanding the drivers of prices, American consumers may be more aware of how U.S. policy outcomes – such as more domestic natural gas and oil production, a strong U.S. dollar, low price inflation, avoidance of tariffs, quotas and other protectionist measures that undermine free trade, and peaceful international relations – could help put downward pressure on crude prices that ultimately benefits consumers.

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consumers  gasoline-prices  oil-production  crude-oil-prices 

Mark Green

Mark Green
Posted July 26, 2017

Nationally, the average price of a gallon of gasoline the third week of July was $2.392 – about 42 percent lower than the national average price at the same time in 2008, according to the U.S. Energy Information Administration. Retail gasoline prices haven’t been “sticky,” as Sen. Charles Schumer said on ABC’s “This Week,” suggesting that some sort of anti-Adam Smith force has kept them from decreasing. Yet, as we can see, they have decreased significantly over a time period that coincides with accelerated U.S. crude oil production (thanks, fracking).

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montana  bakken-shale  oil-production  vote4energy  states2016 

Mark Green

Mark Green
Posted September 6, 2016

Montana is a leading energy producer in an energy nation – one that leads the world in oil and natural gas output. America’s ongoing energy renaissance is largely due to private energy investment and development – in the Bakken and other energy-rich fields. 

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oil-production  oil-imports  us-energy-security  economic-growth  president-obama 

Mark Green

Mark Green
Posted February 9, 2016

Progress on domestic oil production and oil imports is not something the United States should surrender – or worse, roll back. We should not pursue policies that take the United States back to the energy reality of a decade ago: the prospect of increasing dependency and less opportunity – for American workers, consumers, our economy and our strategic security.

Yet, that’s what the Obama administration is leading – a retreat from the progress that’s been made because of abundant shale energy reserves and the innovation and technology reflected in safe hydraulic fracturing and modern horizontal drilling.

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crude-oil-exports  economic-growth  oil-production  jobs  us-energy-security 

Jack Gerard

Jack Gerard
Posted December 22, 2015

Almost exactly 40 years after it was instated, the ban on crude exports has been lifted. A relic of ‘70s-era energy scarcity, the ban makes no sense now that the United States leads the world in oil and natural gas production. Numerous studies have found that lifting the ban will help put downward pressure on gas prices, create jobs, grow our economy and lower our trade deficit.

Lifting the ban is also a security win for the U.S. and our allies. With the administration’s push to allow Iran to export its oil to the global market, it’s time for U.S. producers to have the same opportunity. Our allies around the world are eager to reduce their reliance on energy from less friendly nations.

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crude-oil-exports  congress  economic-growth  oil-production  white-house 

Mark Green

Mark Green
Posted December 15, 2015

That Congress soon may act to end the United States’ 40-year-old ban on domestic crude oil exports is signaled in the number of reports and posts on exports-related themes.

The Wall Street Journal has a report that talk of lifting the export ban is narrowing the difference between U.S. and global crude prices. The Council on Foreign Relations’ Michael Levi has this post discussing the impact of an exports deal on markets, the recent climate deal and geopolitics. National Journal reports on the legislative horse-trading some think could be part of lifting the exports ban. And there’s more.

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crude-oil-exports  crude-markets  oil-production  economic-growth  us-energy-security 

Mark Green

Mark Green
Posted December 9, 2015

The U.S. shale energy revolution is a game-changer – for the United States and the world’s energy balance. The U.S. has become the No. 1 producer of oil and natural gas, resulting from a domestic energy renaissance driven by advanced hydraulic fracturing and horizontal drilling – fracking. And the positive impacts are all around us.

U.S. crude imports are down, and American energy self-sufficiency is up. An America that’s more energy self-sufficient is more secure. Meanwhile, the global crude market is better supplied and more stable – thanks to the availability of crude that would have been imported to the U.S. Domestic pump prices reflect this well-supplied market. At the same time, greater use of natural gas has increased each American household’s disposable income by $1,200, and IHS says the benefit will grow to more than $3,500 in 2025. Thanks, fracking.

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crude-oil-exports  oil-production  security  refinieries  consumer-products  economic-growth  jobs 

Mark Green

Mark Green
Posted November 2, 2015

When the Energy Policy and Conservation Act was signed into law by President Gerald Ford in 1975, Ford said it would put the United States “solidly on the road to energy independence.” The legislation included a ban on most exports of domestically produced crude oil. For many, shutting in domestic oil production – effectively self-sanctioning a vital U.S. industrial sector from the global marketplace – seemed like a good idea. At the time.

The country had been roiled by an oil embargo imposed by exporting states in response to U.S. support for Israel during the 1973 Yom Kippur War. Americans learned the meaning of oil shock – long lines for gasoline, odd/even day rationing schedules, shortages and rising prices. The Federal Reserve’s Michael Corbett writes that the embargo nearly quadrupled the price of a barrel of oil to $11.65 – quaintly low in 2015 dollars, but economically crippling four decades ago.

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analysis  energy-exports  crude-oil  oil-production  economic-benefits 

Mark Green

Mark Green
Posted September 18, 2015

First, they said it was about protecting consumers. Opponents of lifting the U.S. ban on crude oil exports claimed that allowing domestic crude to reach the global market would negatively impact Americans at the gas pump. But every major economic study looking at the issue has blown away that fig leaf.

The studies – from Brookings Energy Security Initiative to IHS to the U.S. Energy Information Administration (EIA) – estimate that U.S. oil exports would put downward pressure on U.S. gasoline prices, benefiting American consumers.

There have been other fig leaves.

Exports opponents say America shouldn’t export crude as long as our country is an oil importer. They also say the U.S. should isolate its crude from the global marketplace for national security reasons and that for those reasons oil should be treated differently than other U.S. commodities that are freely traded. These, too, have been blown away by the facts and sound economic analysis.

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analysis  energy-exports  crude-oil  eia34  economic-benefits  oil-production  american-petroleum-institute 

Mark Green

Mark Green
Posted September 1, 2015

Some quick points from the new crude oil exports study from the U.S. Energy Information Administration (EIA):

First, like a series of other studies before it, EIA’s study finds that lifting America’s 1970s-era ban on exporting domestic crude oil would not negatively affect U.S. consumers. EIA says:

Petroleum product prices in the United States, including gasoline prices, would be either unchanged or slightly reduced by the removal of current restrictions on crude oil exports.

EIA projects that ending the export ban – which would allow shut-in domestic crude to access global crude oil markets – would spur more domestic production. Then the global supply/demand would become “looser,” putting downward pressure on global crude prices, resulting in “lower petroleum product prices for U.S. consumers.

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