What Should the US Energy Policy Be for Oil?

What Should the US Energy Policy Be for Oil?
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KEY TOPICS

  • State-specific energy-efficiency incentive programs also play a significant role in the overall energy policy of the United States. 6 The United States refused to endorse the Kyoto Protocol, preferring to let the market drive CO 2 reductions to mitigate global warming, which will require CO 2 emission taxation.(More…)
  • The Obama administration was moving as rapidly as it could in renewable energy policy, but unlike advanced European nations, it took a singleminded approach to policy and a hostile attitude to industry.(More…)

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  • Gallup found that from 2009 through the latest poll in March 2013, public opinion has been nearly evenly split on whether to give priority to the environment or to developing energy sources such as oil, gas, and coal.(More…)
  • Three years ago, a tiny Denver company called Lilis Energy was, like many small oil and gas producers, teetering on the edge of bankruptcy as crude prices plunged.(More…)

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KEY TOPICS

State-specific energy-efficiency incentive programs also play a significant role in the overall energy policy of the United States. 6 The United States refused to endorse the Kyoto Protocol, preferring to let the market drive CO 2 reductions to mitigate global warming, which will require CO 2 emission taxation. [1]

The Department of Energy’s Loan Guarantee Program, established by the Energy Policy Act of 2005 and enhanced by the American Recovery and Reinvestment Act of 2009, attempts to pave the way for investor support of clean energy projects by providing a guarantee of financing up to 80% of the project cost. [1]

U.S. Energy policy incentives can serve as a strategic manner to develop certain industries that plan to reduce America’s dependence on foreign petroleum products and create jobs and industries that boost the national economy. [1] An incentive resulting from U.S. energy policy is a factor that provides motive for a specific course of action regarding the use of energy. [1] Throughout U.S. history there have been many incentives created through U.S. energy policy. [1] In some cases, the U.S. has used its energy policy as a means to pursue other international goals. [1] In the U.S. most energy policy incentives take the form of financial incentives. [1] Most recently the Energy Policy Act of 2005, Energy Independence and Security Act of 2007, and Emergency Economic Stabilization Act of 2008, each promote various energy efficiency improvements and encourage development of specific energy sources. [1] When energy policy and climate change are compared to other issues, they are rated extremely low in terms of importance. [1]

Banning exports is misguided energy policy because it could disrupt new sources of crude oil production that otherwise would not be needed domestically, and the supporting economic activity that has accompanied it could be squandered. [2] Energy Tomorrow is a project of the American Petroleum Institute – the only national trade association that represents all aspects of America’s oil and natural gas industry – speaking for the industry to the public, Congress and the Executive Branch, state governments and the media. [2] Whatever the advantages for consumers and American foreign policy, oil price relief could be modest and short-lived. [3]

Francisco J. Monaldi, fellow in Latin American energy policy, is quoted in an article about the projections for Venezuela’s oil output over the next year. [4]

It is clear to me that an “America First” energy policy will help ensure our economic and national security for years to come. [5] To continue America’s positive energy, economic and environmental progress, we need to get our nation’s energy policy right today. [6] “There’s not an honest discussion with regard to the real choices we need to make regarding energy policy,” Besa said. [7] As the pillars of Ukraine’s power sector – coal and nuclear – are shaking, the country is on the point of a major energy transformation, writes Oleg Savitsky, climate and energy policy expert and journalist. [8] “Russian firms have long been pushing to produce more,” said Jason Bordoff, director of the Center on Global Energy Policy at Columbia University. [3] A recent poll found that 73 percent of all voters – including 67 percent of Republicans, 76 percent of Independents and 79 percent of Democrats – support establishing a national energy policy that ensures a secure supply of abundant, affordable and available energy in an environmentally responsible manner. [6]

“A trade war is not good for the U.S. oil and gas sector,” said Jason Bordoff, the founding director of the Center on Global Energy Policy at Columbia University and a former White House energy adviser to President Barack Obama. [9] On October 11-12, 2017, CGEP, in collaboration with Statoil’s Global Strategy and Business Development unit, hosted a workshop in Paris to explore the intersection of energy and geopolitics in oil and gas markets, in climate policy, and across a range of cross-cutting topics, such as national security and cybersecurity. [10]

The 114th Congress’s first energy policy priority-after approving the proposed Keystone XL crude oil pipeline-should be repealing the ban on U.S. crude oil exports, the American Petroleum Institute believes. [11] The new energy abundance largely ushered into the world by the prolific U.S. production of shale oil and gas has clearly given the Trump administration greater confidence in how it conducts itself in foreign policy. [12]

The Obama administration was moving as rapidly as it could in renewable energy policy, but unlike advanced European nations, it took a singleminded approach to policy and a hostile attitude to industry. [13] During last week’s international energy industry gathering in Houston, CERA Week, U.S. Secretary of Energy Rick Perry introduced a new buzzword for the Trump administration’s energy policy: “energy realism.” [14] Mexico City — The administration of Mexico’s president-elect Andres Manuel Lopez Obrador expects to audit upstream contracts and set a position on its energy policy by year’s end, one of his top advisers told S&P Global Platts. [15] This kind of leadership and vision can turn energy policy challenges into great opportunities for economic growth and energy security. [16]

Reducing our dependence on foreign oil is a hallmark of U.S. energy policy. [17] That said, it is time to correct an oversight in America’s move toward an “all-of-the-above” energy policy: the unnecessarily restrictive approach to the exploration and safe development of oil and natural gas resources that lie offshore. [18]

America’s strategic position has improved in recent years due to an “all-of-the-above” energy policy. [18]

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Gallup found that from 2009 through the latest poll in March 2013, public opinion has been nearly evenly split on whether to give priority to the environment or to developing energy sources such as oil, gas, and coal. [1] The public is also quite clear on its priorities when it comes to promoting energy conservation versus increasing the supply of oil, coal, and natural gas. [1] There is also criticism that federal energy policies since the 1973 oil crisis have been dominated by crisis-mentality thinking, promoting expensive quick fixes and single-shot solutions that ignore market and technology realities. [1] Increased domestic production of these fuels could reduce U.S. expenditure on foreign oil and improve energy security if methods of producing and transporting the fuels do not involve heavy inputs of fossil fuels, as current agriculture does. [1]

Specifically, he argues that the U.S. intentionally worked with Saudi Arabia during the Reagan administration to keep oil prices low, thus decreasing the purchasing power of the Soviet Union’s petroleum export industry. [1] Problems associated with oil supply include volatile oil prices, increasing world and domestic petroleum product demand, dependence on unstable imported foreign oil, falling domestic production ( peak oil ), and declining infrastructure, like the Alaska pipeline and oil refineries. [1] Richard Heinberg, a professor from Santa Rosa, California argues that a declassified CIA document shows that the U.S. used oil prices as leverage against the economy of the Soviet Union. [1] “Phasing out coal, oil and gas extraction in U.S. would drastically cut emissions”. [1] The 1973 oil embargo highlighted the vulnerability of the United States to oil supply disruptions when it depends on imports from nations that are either politically unstable or opposed to U.S. interests. [1] The subject of continued exploration for offshore drilling in the United States is a perennial debate, one which was heavily influenced in 2010 by the BP Macondo oil spill in the Gulf of Mexico. [1]

In terms of the production of energy from domestic sources, from 1885 through 1951, coal was the leading source of energy in the United States. [1] The United States receives approximately 84% of its energy from fossil fuels. 23 This energy is used for transport, industry, and domestic use. [1] The trend of net energy imports into the United States (U.S. Energy Information Administration). [1] A National Maximum Speed Limit of 55mph (88km/h) was imposed to help reduce consumption, and Corporate Average Fuel Economy (aka CAFE) standards were enacted to downsize automobile categories. 31 Year-round Daylight Saving Time was imposed, the United States Strategic Petroleum Reserve was created and the National Energy Act of 1978 was introduced. [1] About 82% of all types of energy used in the United States is derived from fossil fuels. [1] In 2014, the largest source of the country’s energy came from petroleum (35%), followed by natural gas (28%), coal (18%), renewable sources (10%) and nuclear power (8%). 55 Amory Lovins says that the sharp and steady cost reductions in solar power has been a “stunning market success”. [1] A Renewable Portfolio Standard (RPS) is a mandate that requires electricity providers to supply to their customers a minimum amount of power from renewable sources, usually as a percentage of total energy use. [1] In 2012, the National Renewable Energy Laboratory assessed the technical potential for renewable electricity for each of the 50 states, and concluded that each state has technical potential for renewable electricity, mostly from solar power and wind power, greater than its current electricity consumption. [1]

This policy-stimulus combination represents the largest federal commitment in U.S. history for renewable energy, advanced transportation, and energy conservation initiatives. [1] When President Carter created the U.S. Department of Energy in 1977, one of their first successful projects was the Weatherization Assistance Program. 51 During the last 30 years, this program has provided services to more than 5.5 million low-income families. [1] Coal provided the bulk of the U.S. energy needs well into the 20th century. [1] U.S. energy use (in Quad BTU. (1 Quad/s1 trillion MW; 1 Quad/year 33.5 Gigawatts). [1] The current head of the U.S. Department of Energy under the Trump administration is Rick Perry, who succeeded Dr. Ernest Moniz in March 2017. [1] U.S. shale has probably been the most significant energy development in the world since the end of WWII, with undoubtedly so much more to come. [19] Catalyze the timely, material, and efficient transformation of the nation’s energy system and secure U.S. leadership in clean energy technologies. [1]

The Energy Independence and Security Act of 2007 increases average gas mileage to 35 mpg by 2020. [1] The “Energy Independence and Security Act of 2007” includes funding to increase the popularity of ZEBs, photovoltaics, and even a new solar air conditioning program. [1]

The Production Tax Credit (PTC) reduces the federal income taxes of qualified tax-paying owners of renewable energy projects based on the electrical output (measured in kWh) of grid-connected renewable energy facilities. [1]

On average, low-cost weatherization reduces heating bills by 31% and overall energy bills by $358 per year at current prices. [1] A similar situation exists in gas transport, where compressor stations along pipelines use energy to keep the gas moving, or where gas liquefaction/cooling/regasification in the liquiefied natural gas supply chain uses a substantial amount of energy, even though the scale of the loss is not as pronounced as it is in electricity. [1] Long distance electric power transmission results in energy loss, through electrical resistance, heat generation, electromagnetic induction and less-than-perfect electrical insulation. 138 In 1995, these losses were estimated at 7.2%. 139 Energy generation and distribution can be more efficient the closer it is to the point of use, if conducted in a high-efficiency generator, such as a CHP. [1] The Office of Science in the Department of Energy would receive $2.0 billion for basic energy sciences to discover new ways to produce, store and use energy. [1]

President Barack Obama’s American Recovery and Reinvestment Act of 2009 included more than $70 billion in direct spending and tax credits for clean energy and associated transportation programs. [1] The remaining portion comes primarily from Hydro and Nuclear stations. 24 Americans constitute less than 5% of the world’s population, but consume 26% of the world’s energy 25 to produce 26% of the world’s industrial output. [1]

Several states, including California, New York, Rhode Island, and Wisconsin, have consistently deployed energy efficiency innovations. [1] Energy would have to be used to produce the hydrogen, and hydrogen cars have been called one of the least efficient, most expensive ways to reduce greenhouse gases. 40 41 Other plans include making society carbon neutral and using renewable energy, including solar, wind, and methane sources. [1] The Investment Tax Credit (ITC) reduces federal income taxes for qualified tax-paying owners based on dollars of capital investment in renewable energy projects. [1] These funds provide a means for allocating the capital necessary for the development of renewable energy technologies. [1]

Energy efficient technologies often represent upgrades in service through superior performance (e.g. higher quality lighting, heating and cooling with greater controls, or improved reliability of service through greater ability of utilities to respond to time of peak demand). [1] When asked which of these should be the higher priority, the public chooses energy conservation by a very wide 68 percent-to-21 percent margin. 149 The public also predominantly believes that the need to cut down on energy consumption and protect the environment means increased energy efficiency should be mandated for certain products. [1] Ethanol is less efficient than gasoline, so more product is needed to produce the same amount of energy. [19] These credits range from several hundred dollars to a few thousand dollars. 133 Homeowners can receive a tax credit up to $500 for energy efficient products like insulation, windows, doors, as well as heating and cooling equipment. [1]

The solution requires both improved incentives for energy conservation, and new energy sources. [1] Included in that amount are allocations of $457 million for solar energy; $341 million for biofuels and biomass R&D, including a new reverse auction to promote advanced biofuels; and more than doubling investment in geothermal energy to $102 million. [1] Buildings and their construction consume more energy than transportation or industrial applications, and because buildings are responsible for the largest portion of greenhouse emissions, they have the largest impact on man-made climate change. [1]

“U.S. is now world’s biggest oil producer”. www.chicagotribune.com. [1] Whales were rendered into lamp oil. 9 Later, coal gas was fractionated for use as lighting and town gas. [1] Over the years these were replaced with oil furnaces, not because of it being cheaper but because it was easier and safer. 12 Coal remains far cheaper than oil. [1] Following World War II, oil heating boilers took over from coal burners along the Eastern Seaboard; diesel locomotives took over from coal-fired steam engines under dieselisation ; oil-fired electricity plants were built; petroleum-burning buses replaced electric streetcars in a GM driven conspiracy, for which they were found guilty, and citizens bought gasoline powered cars. [1]

President Obama boasted about a Michigan wind turbine factory, America’s healthy supplies of natural gas and widespread oil exploration. [1] The largest sources of imported oil were Canada, Saudi Arabia, Mexico, Venezuela, and Russia. [1] The biggest use of oil has come from the development of the automobile. [1] Transportation is the largest consumer, accounting for approximately 68.9%, 58 and 55% of oil use worldwide as documented in the Hirsch report. [1]

It came about in 2005 and was expanded in 2007 – when U.S. crude oil production was erroneously thought to have peaked. [19] U.S. Imports of crude oil and petroleum products (in thousands of barrels ), 1981-2010. [1]

Hydroelectric power is currently the largest producer of renewable power in the U.S. It produced around 6.2% of the nation’s total electricity in 2010 which was 60.2% of the total renewable power in the U.S. 26 The United States is the fourth largest producer of hydroelectricity in the world after China, Canada and Brazil. [1] Following the 2011 Japanese nuclear accidents, the U.S. Nuclear Regulatory Commission has announced it will launch a comprehensive safety review of the 104 nuclear power reactors across the United States, at the request of President Obama. [1]

The largest gas producing states in 2007 were Texas (30%), Wyoming (10%), Oklahoma (9%) and New Mexico (8%), while 14% of the country’s production came from the federal offshore lands in the Gulf of Mexico. 78 Recent development in hydraulic fracturing and horizontal drilling have increased interest for shale gas across the United States in recent years. [1]

In 2013, four aging reactors in the USA were permanently closed before their licenses expired because of high maintenance and repair costs at a time when natural gas prices have fallen: San Onofre 2 and 3 in California, Crystal River 3 in Florida, and Kewaunee in Wisconsin. 91 92 The state of Vermont is trying to close Vermont Yankee, in Vernon. [1] At a time when ” 50 million American households can?t even afford basic living expenses,” policies to unnecessarily increase the cost of gasoline and diesel crush the poorest families the most, forced to spend disproportionately more of their money on such indispensable fuels. [19] An EPA reallocation plan that would increase regulatory costs would hurt our refining companies – and therefore also hurt we Americans that use their products everyday. [19]

Portland, Oregon, recently became the first city in the United States to require all gasoline sold within city limits to contain at least 10% ethanol. 112 Ford, Daimler AG, and GM are among the automobile companies that sell “flexible-fuel” cars, trucks, and minivans that can use gasoline and ethanol blends ranging from pure gasoline up to 85% ethanol ( E85 ). [1] The United States is a net importer of natural gas, most of it by pipeline from Canada, with a smaller amount of LNG from other sources. [1] The United States is the world’s largest supplier of commercial nuclear power. [1] Nuclear power in the United States depends largely on imported uranium. [1] In the non-binding ‘ Washington Declaration ‘ agreed on February 16, 2007, the United States, together with Presidents or Prime Ministers from Canada, France, Germany, Italy, Japan, Russia, United Kingdom, Brazil, China, India, Mexico and South Africa agreed in principle on the outline of a successor to the Kyoto Protocol. [1] Although exceeded by China since 2007, 157 the United States has historically been the world’s largest producer of greenhouse gases. 158 Some states are much more prolific polluters than others. [1]

In his 2012 state-of-the-union address, Barack Obama said that America needs “an all-out, all-of-the-above strategy that develops every available source of American energy.” [1] This represents a shift from poll results from 2001 through 2008, when clear pluralities of Americans wanted environmental concerns to take priority over developing fossil fuel resources. [1]

The USA has about 22 billion barrels (3.5 10 9 m 3 ) reserves while consuming about 7.6 billion barrels (1.21 10 9 m 3 ) per year. 57 This has created pressure for additional drilling. [1]

Crude oil and natural gas then vied for that role until 1982. [1] Two-thirds of U.S. oil consumption is in the transportation sector. 36 The U.S. – an important export country for food stocks – converted approximately 18% of its grain output to ethanol in 2008. [1]

Make no mistake: upping the mandate and/or relocating exempted volumes to larger refineries contradicts our national goal to perpetually enhance our three “Es,” Economy, Environment, and Energy Security. [19]

More recently, Rosneft and other Russian oil companies have been lobbying Mr. Putin to increase production to take advantage of higher prices and for tax reasons, energy experts say. [3] Energy stocks are on pace to be the best-performing group in the S&P 500 this quarter, after oil prices broke through $70 a barrel, a level they?ve struggled to reach and stay above for four years. [20] Quorum Business Solutions Inc., a software provider to the energy industry, is betting a rebound in oil prices will help it land a new owner. [20] The keep it in the ground scenario includes no new oil and natural gas leases on private, State or federal lands, a ban on hydraulic fracturing, no new or expansions of existing coal mines, and no new energy infrastructure to transport oil and natural gas within and outside of North America. [6] Recently retired John Watson of the oil giant Chevron Corp. topped the list of highest-paid energy bosses in the S&P 500, taking home more in 2017 than his counterpart at Exxon Mobil Corp. [20]

She noted that 85 percent of the U.S. outer continental shelf is closed for oil and gas exploration and production, and though the U.S. has 400 years of coal reserves, coal-fired power plants are being closed wholesale. [7] Income from oil and gas production is the federal government’s second-largest revenue source, said Kate MacGregor, a professional staff member with the U.S. House of Representative’s Natural Resources Committee. [7] Let’s discuss three factors – oil location, quality and quantity – to understand how U.S. petroleum trade and the policies that foster that trade have complemented the strength in domestic oil production, which in turn has helped to increase global supplies and keep oil prices relatively low and less volatile. [2] OPEC nations in 2014 increased production in order to cause higher cost producers around the world to cut back their CapEx budgets and create a higher long-term global price for oil. [5] The stars appear to be aligned for them to work together to keep oil prices from climbing too high, too fast, despite the collapse of Venezuelan crude production and the expectation that new American sanctions will target Iranian oil exports. [3] American sanctions clamping down on Iranian exports would allow Russia to buy Iranian oil cheaply and resell it at a higher prices. [3]

Experts believe a shortage of pipelines will limit the amount of oil that companies can extract from the Permian basin of West Texas and New Mexico, the main source of new American production, until late 2019. [3] You need different kinds of oil to make different products and, despite the rapid increase in domestic oil output, significant portions of the oil that is being produced here may not be what is needed to make all of the products Americans use. [2] For these reasons and others it’s neither practical nor in our country’s best interest to keep American oil here at home and opt out of the global crude market. [2]

The United States is the world’s leading producer of oil and natural gas, and as a result of greater use of clean-burning natural gas and cleaner, more efficient fuels, we are also a world leader in reducing carbon emissions and other air pollutants. [6] A barrel of oil in the United States now costs about $67 a barrel, down nearly $4 over the past month, although that is still about 45 percent higher than at this time last year. [3] Prices collapsed in 2014, falling in the United States to below $30 in early 2016, as a glut of oil filled up tankers. [3]

“Putin is under pressure domestically to export more oil, the Saudis got a little nervous when the Brent price hit $80 a barrel, and the U.S. is nervous about their Iranian policy and the possibility of soaring gasoline prices.” [3] Harbert said, “We have a policy based on rationing, not exploiting,” available resources, while U.S. energy demand will increase 20 percent in 20 years. [7] Based on the models used, a U.S. policy of “keep it in the ground” is projected to generate the following impacts relative to a reference case similar to EIA’s Annual Energy Outlook 2016 Reference Case. [6] Foreman has more than 20 years of industry experience in corporate strategic planning, forecasting, finance / risk management and regulatory policy at ExxonMobil, Talisman Energy and Sasol North America. [2]

Though federal regulations are a burden on the U.S. energy industry, don’t count coal out as a globally important power source, speakers at the conference in Richmond said Wednesday. [7] Of the natural gas consumed in the United States in 2011, 94 percent was produced domestically, according to the U.S. Energy Information Administration. [7] “The availability of large quantities of shale gas should enable the United States to consume a predominantly domestic supply of gas for many years,” the Energy Information Administration said, “and produce more natural gas than it consumes.” [7] As the energy leaders from across the globe converge on Washington, DC this week for the World Gas Conference, it is fitting that we recognize the extraordinary growth of the liquefied natural gas (LNG) industry in the United States over the past year. [7]

While many producers around the world quit drilling and producing, the U.S. shale producers continued to invest in new technology and drilling which have enabled a spectacular American energy renaissance. [5] A fundamental reordering of the world’s energy markets has elevated the importance of North American energy production and reduced what had been the once-dominant roles of OPEC and Russia on the world energy stage. [6] There’s no question; the American energy renaissance has delivered significant economic and environmental benefits – so significant that it can be easy to take our new energy reality for granted. [6] Join The American Petroleum Institute’s Jack Gerard in a discussion about Americas energy renaissance. [6] Our political leadership has the opportunity to continue, and expand upon, the American energy revolution. [6]

Our nation’s economy continues to improve while America has become a world leader in energy production and in the reduction of greenhouse gas emissions, achievements long thought to be mutually exclusive. [6] Should the Italian government decide to halt the Trans Adriatic Pipeline (TAP), the last leg of the Southern Gas Corridor – meant to reduce the EU’s dependence on Russia – may be in jeopardy, writes John Roberts, a senior fellow with the Atlantic Council Global Energy Center. [8] The result has been a partial reversal in energy prices, which should cheer elected leaders and economists who worry that high energy prices could hurt global economic growth. [3] Mr. Trump wants even more crude sloshing around the market to tamp down energy prices ahead of the congressional elections in November, and it looks like he may well get it. [3] As a Texan, I am proud to be on the front line of our fight for energy independence with President Trump Donald John Trump Ex-FBI lawyer won’t attend interview with House lawmakers: attorney Trump officials to release migrants with ankle monitors North Korea state media release photos of Kim at potato farm after Pompeo visit MORE. [5] “Who knew we were entering an era of energy abundance?” said Karen A. Harbert, president and chief executive of the U.S. Chamber of Commerce’s Institute for 21st Century Energy. [7] Since the U.S. energy renaissance has accelerated, however, most of the 4.8 mb/d of new U.S. oil production the past six years has been light oil. [2] With Wall Street Journal headlines such as “Trans-Atlantic Oil-Price Spread Soars as Supply Glut Disappears,” it might be hard to remember that the United States’ domestic oil production stood at a record 10.5 million barrels per day (mb/d) in April, and the nation’s petroleum trade balance is in its best position in 50 years. [2] These activities are integral to the 10.3 million U.S. jobs supported by the natural gas and oil industry and the broader U.S. economy. [2] In the 2.5 years between the end of international sanctions and the reimposition of U.S. sanctions this May, Iran accomplished very little in terms of revitalizing its oil industry, writes Ellen Wald of Jacksonville University. [8]

The oil and gas industry may not collapse as rapidly as the Yellow Pages did, it will go the way of the shrinking coal industry unless it learns from the failure of the Yellow Pages to adapt. [8] Iran would like higher oil prices, because it needs money to invest in its weakened oil industry and ailing economy. [3] This economic growth has driven up demand for oil, resulting in higher price for crude and ultimately gasoline, plastics, home building materials, etc. [5] The Indian rupee weakened to a new low against the dollar, driven by concerns that rising oil prices will undermine the country’s strong economic fundamentals. [20] “Oil prices are too high, OPEC is at it again,” he wrote in his second such statement since April. [3] He is publicly targeting OPEC even though oil prices have stabilized since his criticism in April, and regular gasoline prices have slid by roughly a nickel a gallon since Memorial Day. [3] That may well upset Iran, Venezuela and other OPEC members that want higher oil prices, making the coming meeting a contentious one. [3]

It is perfectly normal for Republican and Democratic administrations to try to nudge oil prices down, but rarely — if ever — has the effort been so blunt and public. [3]

Six federal agencies, from the EPA to the Department of Homeland Security, have a say in regulating gas and oil development, MacGregor said. [7] Saudi oil officials have agreed to boost production publicly, in coordination with Russian officials who would like to export more oil to bolster the country’s economy. [3] Venezuela’s oil exports are falling by tens of thousands of barrels every month, and Iranian exports could fall by between 200,000 and a million barrels a day by next year, analysts say. [3]

The United Stats is the world’s leading producer of oil and natural gas, and as a result of greater use of clean-burning natural gas and cleaner, more efficient fuels, we are also a world leader in reducing carbon emissions and other air pollutants. [6] Not everyone at the conference shared the enthusiasm for using the U.S.’s vast reserves of natural gas, oil and coal to fuel the nation. [7]

Oil production, refining and demand can differ geographically. [2] The Russian oil companies, increasingly active in Venezuela and the Middle East, have recently raised their production capacity. [3] Oil is up a lot, but the reason is not OPEC’s decision to boost production. [20]

Preparations for the public listing of Saudi Arabia’s state oil company, a centerpiece of the government’s plan to open its economy, have stalled, leaving government officials and people close to the process doubting that it will go forward at all. [20] While Saudi Arabia wants higher oil prices in the long term, it is willing to tamp down oil prices for now to put pressure on Iran. [3] Of course, over the long term, Russia and Saudi Arabia would prefer higher oil prices. [3]

Oil prices surged to multiyear highs for the second straight session Thursday as investors anticipate an ever-tightening market and declining inventories. [20]

This underscores the need for flexibility in trading oil internationally – marketing supplies that might not match local needs to global buyers – which is integral to unlocking the United States’ productive potential. [2] While we point out that oil is a global commodity, almost no one consumes oil directly. [2]

Besides juicing economic growth, Russia has other reasons to export more oil. [3] With a Ph.D. in economics from the University of Florida, he came to API from Saudi Aramco Strategy & Market Analysis in Dhahran, where he managed short-term market monitoring and the long-term oil demand outlook. [2] Physical characteristics – such as where oil is produced versus where there is refining or manufacturing plants, or the location of the greatest consumer demand – affect its usefulness and therefore value. [2]

President Vladimir V. Putin of Russia and Saudi Arabia’s Crown Prince Mohammed bin Salman will discuss oil and other issues on Thursday as their teams face off in the World Cup. [3] Turning heavy oil into high-quality products also requires more advanced molecular processing than is possible with simple refining or distillation. [2] That said, given our country’s much improved energy outlook, some may question why we’re still importing crude oil and refined products. [2] Drilling for natural gas using hydraulic fracturing has been done for more than 60 years, with more than 1 million wells drilled, without harm to the environment, said Randy Albert, chief operating officer with Consol Energy. [7] The right policies, though, are necessary to help sustain the energy renaissance and continue to foster domestic production. [2] Huge new shale gas discoveries are a game changer for energy in the U.S., potentially reshaping the electricity and transportation industries, according to officials at the Governor’s Conference on Energy. [7] The world is undergoing a dramatic electricity transition, and the global struggle for power over this transformed electric system is set to profoundly shape our future, argues Walt Patterson, Associate Fellow in the Energy, Environment and Resource Department of Chatham House in London. [21] Welcome to the Future of Energy! There are lots of opinions about how we should power our world in the coming decades, but how do you separate fact from fiction? This unique web experience is designed to let you explore many possible futures, using information from the federal Energy Information Administration. [6] According to Danila Bochkarev, Senior Fellow, EastWest Institute, the Commission is thinking further ahead: it is using the proposal to try to increase its power over the EU energy market. [21] Mexico’s annual inflation rate accelerated in June for the first time in six months, led by increases in energy and transport costs. [20]

While ride-hailing threatens public transit, it is also key to its future success – but only with smart policies and the right price signals, according to three UC Davis transportation and energy scholars in The Conversation. [22] The parallels between what happened to the Yellow Pages business and what’s happening to the fossil fuel industry today are striking, writes Kathy Hipple, financial analyst at IEEFA (Institute for Energy Economics and Financial Analysis). [8] There is economic and financial market rationale behind the recent deal between E.ON. and RWE, writes financial energy specialist Gerard Reid. [8]

“If you are the Saudis, you want to do Trump a favor and get him off your back,” said Robert McNally, president of Rapidan Energy Group, a consulting firm. [3] Dr. R. Dean Foreman is API’s chief economist, specializing in energy and global business. [2] He is a Partner of Hicks Holdings LLC, a private equity firm with interests in manufacturing, energy services and consumer products and worked with the Presidential Transition Team following the election. [5] Policies and regulations left over from the Obama era have made it more difficult to develop energy resources on federal lands and bring our energy resources to market. [5] America’s brighter energy reality benefits consumers and our economy by providing abundant, affordable and reliable energy and a cleaner environment. [6]

With the requisite additional investment and processing cost, heavy oil typically has been priced less than light oil. [2] In any event, restricting crude exports would not break the linkage between domestic and international prices – ostensibly the political objective – since U.S. refined products still would be able to be exported, as they were long before crude oil exports were enabled. [2] Basic economic principles tell us that any restrictions on crude oil exports could force the U.S. market to rebalance to serve only domestic crude oil demand. [2] Therefore, differences among crude oils are important reasons why the U.S. continues to import oil in an era of domestic abundance and export light oil that can be problematic, operationally and financially, to handle with existing U.S. refinery capacity (but also is of great value to refineries globally). [2] The U.S. continues to import and export crude oil because the viscosity of oil (measured by its API gravity) being light or heavy and its sulfur content being low (sweet) or high (sour) largely determine the processes needed to refine it into fuel and other products. [2] A main reason why the U.S. continues to import crude oil and refined products is that much of the infrastructure to produce oil, as well as refine and transport fuels, is in the mid-continent and U.S. Gulf Coast regions. [2]

The U.S. supply of natural gas is not as dependent on foreign producers as is the supply of crude oil, and delivery is less subject to interruption, the EIA said in July. [7] The supply, demand and prices for various crude oils and products have continually solved this equation for producers and refiners to determine the role that crude oils of different qualities should play in the market, in accordance with economic fundamentals. [2] While there might a period where an oversupply of domestic crude oil could lower prices, the domestic supply of oil has shown an ability to adjust quickly and could effectively stall new investment and downshift U.S. oil production as capital flows slowed, rigs were idled, crews disbanded and midstream infrastructure went into limbo. [2] Malaysia’s largest oil and gas services company is planning to list its exploration and production unit to take advantage of the recent surge in global oil prices. [20] American and global oil prices rose modestly on Wednesday despite Mr. Trump’s criticism. [3] Congress urgently needs to work with the president this summer to address the infrastructure and regulatory bottlenecks that prevent getting crude oil out of the ground, refined and sold to Americans in all its many forms, from gasoline and oil to plastics and fertilizer. [5]

“It looks like we have a couple of hundred years’ natural gas supply liberated by the fracking process,” said Robert P. Powers, executive vice president and chief operating officer of American Electric Power. [7] That’s how we can ensure ordinary American families will continue to enjoy the broader American Renaissance President Trump’s America First policies. [5]

The United States will achieve GDP growth in 2018 of well above 3 percent because President Donald J. Trump has rescinded many Obama-era policies and regulations that stymied growth. [5]

All the citizens of our country have benefitted tremendously, with over four million new jobs, a stock market that has hit all-time highs, and tax cuts that have leveled the playing field with other countries and has put more money in the pockets of ordinary Americans. [5]

With U.S. refining capacity geared toward a diverse crude oil slate, a key implication for U.S. petroleum trade is that it would be uneconomic to run refineries solely on domestic light crude oil. [2] The domestic petroleum market has largely been saturated even as the U.S. has played a growing role in expanding global oil supplies. [2]

U.S. refineries ran about as hard as they could even as U.S. crude oil exports also hit record levels, growing to 1.9 mb/d in April. [2] To be clear, the different locations, qualities and quantities of U.S. crude oil explain why the U.S. has continued to import and export crude oil even as it has become abundant domestically. [2]

Therefore, many U.S. refiners are configured generally to process heavy crude oil. [2]

U.S. oil prices extended gains, rising more than 3% to $70 a barrel, after a senior State Department official said Washington expects all countries to cut oil imports from Iran to zero by Nov. 4 or risk sanctions. [20] Whatever happens at the OPEC meeting, two of the biggest players in the global oil market — Saudi Arabia and Russia — appear to have already calculated that it is in their immediate interest to crank up production, effectively sidelining the Saudis? fellow cartel members. [3] While transportation runs primarily on motor fuels, our society also depends on thousands of products that begin as crude oil. [2] Heavier crude oils contain more complex molecules, so they are better for producing many of these niche products. [2] Shifting purely to light crude oil could underserve some product markets and idle (or even strand) the hundreds of billions of dollars invested in refinery conversion capacity. [2]

The ability to process the heaviest crude oils has vastly expanded the Western Hemisphere’s oil resource and supply potential, as these oils come mainly from Canada and Venezuela. [2] In May, for example, Bloomberg data show that Western Canadian Select (WCS) heavy oil averaged $54 per barrel, while West Texas Intermediate (WTI) light crude oil averaged just above $70 per barrel. [2] These kinds of questions recently became a partisan flashpoint on Capitol Hill, with a group of Senate Democrats advocating the re-imposition of a ban on crude oil exports. [2] Has more light crude oil than it can handle domestically, while this same quality of oil is in high demand in Asia Pacific and other regions that mainly have simple refineries (without conversion capacity). [2]

The two countries have already each added more than 100,000 barrels a day to global oil supplies. [3]

This has reinforced U.S. energy security, lowered the trade deficit and boosted economic growth. [2] Just as today’s energy security is the result of production set in motion years ago, now is the time to lay the groundwork for energy security in future decades. [6] We have a proven model for achieving environmental progress without sacrificing jobs, economic growth, energy security or consumer affordability. [6]

Mr. Trump, for instance, is pursuing several policy goals that cut against each other. [3] “Not once did I hear climate change discussed as a policy concern.” [7]

Three years ago, a tiny Denver company called Lilis Energy was, like many small oil and gas producers, teetering on the edge of bankruptcy as crude prices plunged. [23] Many of Trump’s policies under his “energy dominance” agenda are helping the oil and gas industry. [9] Nations importing Iranian oil are reportedly under U.S. pressure to find another energy source or face sanctions. [4] Without the current fuel economy standards, the U.S. is less likely to become a net exporter of crude oil and will forego the national security benefits of energy independence. [24] Kenneth B. Medlock III, senior director of the Center for Energy Studies, comments on the possible response of the global crude oil market should China impose tariffs on U.S. energy exports. [4]

The U.S. subsidizes more oil and gas production than all other G7 countries combined – nearly $15 billion USD a year, compared to $2 billion for the next highest country, Japan. [13] While the official U.S. report contained gaps, it did include a list of substantial subsidies in need of reform: $1.6 billion in subsidies for expensing of intangible drilling costs, $966 million in unnecessary write-offs for depletion of oil and gas wells, a domestic manufacturing deduction of $1.0 billion, along with many other subsidies. [13] Existing standards are poised to make the U.S. a net exporter — to the tune of more than 4 million barrels a day by 2025 — if oil production continues its steady growth. [24] U.S. sanctions on Iranian oil production will come back into effect in November and the United States is signaling that it expects its allies to eliminate oil imports from Iran by then. [25] Letting U.S. automakers produce cars with inferior mileage performance will lead Americans and foreign consumers to favor cars made in countries with tighter environmental and mileage standards — like China, Japan and Europe — especially since the price of oil is rising again. [24] If shutting down subsidies has the desired effect of also shutting down petroleum production, would it be a good thing to trade American jobs and economy for imported oil to fill the gap? Filling it through electric cars and other envisaged solutions is well in the future. [13]

In the United States, where private companies undertake oil and gas development, companies do not hold spare capacity in reserve because it does not make economic sense to do so (I explored this topic in an earlier post ). [25]

Such a price will be good for the global economy as it enables oil-producing nations to explore for new oil and expand their production capacities to meet global demand and also enables major oil companies to balance their books and invest in new projects around the world. [26] U.S. tight oil wells can be drilled and producing oil in a few months, making this rapidly growing supply source much more responsive to price swings. [25] U.S. shale growth over the past decade has been so explosive that it helped crash oil prices in 2014. [26] Even if we assume that U.S. sanctions on Iran could succeed, it is a flight of fantasy to claim that oil prices could rise by $50 a barre. [26] Since we live in the real world, U.S. sanctions are doomed to fail thus adding nothing to the oil price. [26] U.S. production is truly changing the equation for OPEC because it differs in important ways from traditional oil production. [25] If oil ministers had not agreed to increase production, they understand that their gains would have been short-lived, and that they would give up market share when U.S. production responds in six to nine months. [25] Under the weaker standards, U.S. cars with worse mile-per-gallon fuel economy performance will use more oil to make the same number of trips. [24] The leader of a natural gas pipeline industry group, the Interstate Natural Gas Association of America, warned last week that Trump’s 25 percent steel tariffs could threaten billions of dollars of investment in gas and oil pipelines in the U.S. and Canada over the next two decades. [9] The entire U.S. shale oil industry is a scam, a latter-day Ponzi scheme. [26]

I have argued frequently why U.S. sanctions will not cost Iran a loss of even one barrel of oil. [26] In such a situation, it will be no surprise if oil prices hit the levels they reached in 2008, namely $147 a barrel by 2025 and we know what a disaster it brought on the global economy. [26] Only a fair price for oil ranging from $100-$130 a barrel could encourage global investments. [26] Just by shifting the supply outages from 0.5 to 1 mb/d would translate into an oil price increase of about $8 to $9 per barrel, according to Bank of America Merrill Lynch. [26] An additional 360,000 barrels per day of production just went offline in the Canadian oil sands, demonstrating that an oil supply disruption can come from anywhere. [25] A lack of investment will cause oil production to decline steeply and 80% of the current new oil supply is needed to offset natural declines. [26] Oil ministers from OPEC and cooperating non-OPEC countries (notably Russia) agreed to raise production in response to the highest oil prices since 2014. [25] The Texas oil boom and the higher crude prices that have driven it could take hits after OPEC meets in Vienna Friday, as the strengthening alliance between Saudi Arabia and Russia pushes the cartel to lift. [23] In the old days, OPEC members could count on long lead times for new oil projects to come online, meaning that tight markets and high prices could endure for years. [25]

We need to produce less every year, so phase out that $4B coal production tax credit and similar production credits in the oil business. [13] President Trump is trying to have it both ways and recently tweeted that he had spoken to King Salman of Saudi Arabia about further raising oil production. [25] Those two signature initiatives of President Trump are going to war with each other, as his protectionist policies and expected intervention in competitive markets are putting up barriers to the oil and natural gas industry. [9]

The oil industry might not be able to produce enough oil to meet global demand in a few years’ time. [26] The industry has burned through billions of dollars and has never made a profit regardless of whether the price of oil was high or low. [26] Oil prices fell Thursday after the government reported that crude stockpiles increased unexpectedly last week — but those developments appear likely to be short-lived, analysts said. [23] Cutting Iran exports by that much, in an increasingly tight oil market, would send prices skyrocketing, something that the Trump administration probably won’t be able to stomach. [26] “We estimate that every million b/d shift in balances would push the oil price by $17/bbl on average. [26]

The investment manager said the newfound focus on profitability, which has led a long list of oil and gas companies to deprioritize growth, could create the conditions for a major supply crisis. [26] Next up are royalty relief subsidies, where oil companies carve out exemptions for themselves–usually with the help of lawmakers–to pay significantly lower royalties rates on the oil and gas they extract. [13] Fossil fuels — which includes oil, gas, and coal – account for abo. [27] A prime example of this is the $2.3 billion Intangible Drilling Oil & Gas Deduction subsidy that allows producers to deduct 100 percent of expenses that aren?t directly linked to the final operation of an oil well. [13] Trump’s gifts to oil and gas, he says, are more lasting, including the “certainty” he has provided with limited regulations, the tax breaks he has granted them, and his ambition to drill in places long off limits, such as more offshore waters and the Arctic National Wildlife Refuge in Alaska. [9] The independent oil and gas exploration company previously met with success in its North and West Blackland Fields, and now wil. [27]

Until recently, the oil market assumed a loss of about 0.5 mb/d from Iran because of U.S. sanctions. [26] China is taking advantage of Venezuela’s crisis to gain valuable oil caches while looking to gain influence throughout Latin America, U.S. lawmakers and officials worry. [9]

Only spare production capacity or strategic stocks can immediately make up for shortages in oil supply. [25] One might ask, where is U.S. oil production in this equation? What about the promise of energy dominance? Why are we looking to OPEC to increase supply? The answer is all about timing. [25] The U.S. Energy Information Administration (EIA) determined that petroleum, natural gas, and coal use have been decreasing. [27] The Trump administration is also spooking natural gas businesses, and most everyone else in the energy industry, by promising to bail out coal and nuclear power plants as the legacy power sources struggle to compete with cheaper natural gas and renewables. [9]

Cheniere Energy is working with financial market operator CME Group to develop a futures contract for the delivery of U.S. liquefied natural gas, the latest in a series of early developments towards what. [23] The president should think twice about putting limited interests ahead of the national security imperative of growing net U.S. energy exports. [24] Last year marked the lowest share of total U.S. energy consumption by fossil fuels in more than 100 years, but they still dominate the field with an 80 percent market share. [27] Fossil fuel consumption dropped to its lowest share of total energy consumption in the United States since 1902 while renewable energy consumption hit a 100 year high in 2017, according to the Energy Information Administration. [27] A number of states are pushing legislation that would require 100% renewable energy supply. [28]

The U.S. government budgets zero subsidies for a comprehensive proactive program to discover, evaluate, develop and commercially deploy clean energy inventions. [13] The bottom line: U.S. energy consumers depend on the electric grid. [24] Trump’s $50 billion tariffs on a variety of Chinese imports was met with a counterattack on U.S. energy from Beijing. [9] Foreign enemies are increasingly launching cyberattacks on U.S. critical infrastructure, including energy facilities. [24]

San Diego Gas & Electric (SDG&E) and Southern California Gas Co. (SoCalGas) were awarded an Enterprise GIS Award at this year’s Esri International Conference for their use of geographic information system (GIS) mapping technology for their energy delivery. [27] The irony is that Congress is phasing out the wind energy production credit (a much younger industry) while maintaining the fossil credits(our oldest energy industry). [13] I recently learned that deployment of clean energy inventions would also mitigate the enormous water consumption of generators and production of fossil fuels. [13]

One of the world’s largest power companies is planning to pump $1 billion into new wind projects in Texas, confirming the state’s place as the nation’s largest producer of wind-driven energy. [23] Ideally, Congress would pursue minimization of the total costs of energy, including the costs, if any, from carbon induced global warming. [13] Industry has been a partner in, not an antagonist to renewable energy policies. [13] It is near the bottom of all advanced nations in the proportion of renewable to total energy use. [13] It was the Greens who proposed Germany’s brilliantly effective feed-in tariff system for promoting all types of renewable energy development. [13] Germans and other European leaders in renewable energy performance adopted cooperative rather than unilateral policies. [13]

It is easing permitting for energy infrastructure projects, such as natural gas pipelines, to transport the shale revolution to the rest of the country. [9] The Iowa Western Community College (IWCC) announced the sale of up to 13 acres near its campus last week to Black Hills Energy, which plans to create a new natural gas training and operations center in the newly purchased location. [27] The bottom line: The Trump administration’s goal of “energy dominance” could be at risk under Pruitt’s plan. [24] Defense Minister Ursula von der Leyen told CNBC that “Germany is an independent country where energy supply is concerned, we diversify.” [24] Increased energy demand and air pollution are possible downsides. [28] CNBC’s Natasha Turak has also written that the pipeline would “increase Germany’s reliance on Russian energy supply.” [24] Given the high stakes, Congress should vest responsibility for pipeline security with an agency that fully comprehends the energy sector and has sufficient resources to address this growing threat. [24] The Government Accountability Office (GAO) recently released a report, recommending that the Department of Energy (DOE) take steps to modernize the Strategic Petroleum Reserve (SPR). [27]

From concerns about peak oil demand and uncertainties about shale oil production growth to the unpredictability of Washington, the road ahead is a minefield. [10] This reality argues for increasing production in times of tight markets–selling oil now and maintaining market share is likely to be a better strategy than saving it for later when it may be worth less. [25]

Another notable example in action is the Last-In, First Our Accounting for Fossil Fuel Companies subsidy that allows oil companies to undervalue their inventory, reducing their amount of taxable income on the books and taking $1.5 billion out of federal coffers each year. [13] There are tax expenditures, in which the federal government allows oil companies to deduct taxes during the oil-well development process. [13] The new hyper-focus on profitability at the expense of growth, a mantra pressed upon oil companies by restive shareholders, could keep supply constrained. [26] The oil market is arguably facing a supply crisis right now. [26] The oil market is too tight, and the supply gap would be too large. [26] To be sure, much of the oil world is focused on the supply fears in the near-term. [26] Nobody is paying enough attention to a fast-approaching oil supply gap probably by 2020. [26]

Those who trade WTI are the ones who determine the price of this globally used commodity, and currently they are only paying about $3.25/bbl or less than 8 cents a gallon; whereas everyone USING oil is paying ~$74/bbl. [26] This is due in large part to an oil investment drought since the 2014 oil price crash. [26] A number of conditions brought about the tight oil market and rising prices. [25]

One tax credit is over 100 years old and was put in place to help build the oil industry. [13] In the coming years 1.6 million acres of formerly protected Alaskan wilderness will be the site of new oil exploration and drilling. [28] In May 2017, TSA confirmed that it had just 6 full-time employees tasked with securing the more than 2.7 million miles of natural gas, oil and hazardous liquid pipelines that traverse the country. [24] The most prominent, recent example is the $334 million BP Deduction for Oil Spill Legal Settlement subsidy, where BP was permitted to deduct from its tax bill nearly all the damages they paid to the federal government as a result of the infamous Deepwater Horizon spill. [13] The Petro River Oil Corp (PTRC) announced plans to drill a third exploration field in Osage County, Oklahoma this week, in what would be its largest effort in the state. [27] Western media is doing its utmost to fake news purporting that major oil importers of Iranian crude like Japan, India and South Korea have already decided to stop imports of Iranian crude. [26] OPEC members understand that at some point in the future when demand plateaus and declines, oil will not be worth as much as it is today. [25] The Green River Shale has more oil than all of OPEC put together. [26]

By continuing this practice year after year, decade after decade, it makes breaking oil’s virtual monopoly even harder, and forces us to continue suffering from all the terrible trapping that come with our overwhelming oil dependency.” [13] This is exacerbated by the fact that the rate of new oil discoveries is at its lowest level in more than 70 years. [26] Traditional oil projects take years of up-front investment to produce their first oil. [25]

I actually just wrote a piece on the subsidies the oil industry receives and how it helps lock in their virtual (92% market share) monopoly. [13] Based on those assumptions, we estimate zero Iran exports could push oil up by $50/bbl if Saudi caps out. [26] The market is also anticipating significant reductions in oil exports from Iran over the next few months. [25]

The scope and specifics of these subsidies may vary widely, but the bottom line is always the same: Oil companies are given favorable tax treatment and subsidized with public dollars. [13] These apply when oil companies are given leniency in fulfilling their regulatory commitments. [13] WASHINGTON – Andres Manuel Lopez Obrador, the leftist frontrunner to win Mexico’s presidential election on Sunday, has a knack for making oil companies nervous. [23]

An international tribunal has determined that Petrobras, Brazil’s state-run oil company, is liable to pay $622 million to settle a contractual dispute with a deepwater drilling contractor operating out of. [23] Predicting when oil demand might level off is a difficult exercise, but the timing doesn?t matter so much as the near certainty that it will happen in the coming decades. [25] My point? Perhaps we should all be discussing oil at $3.25/bbl before we all are meant to think and feel as though we need to to the bidding for OPEC+ and hedge fund managers. [26] The Trump administration is taking a harsher line than the Obama administration did in the lead up to the deal, stating that it does not intend to issue waivers on secondary sanctions to those who import Iranian oil, as my colleague Suzanne Maloney explored in a recent post. [25] WASHINGTON – EPA Administrator Scott Pruitt, one of the oil industry’s most faithful friends, ended months of speculation about his future in the Trump administration, resigning Thursday following a. [23]

At this rate of increase, in about two years half of U.S. Lower 48 C+C production will exceed the maximum API gravity for WTI crude oil. [26] Given that condensate is a byproduct of natural gas production, in my opinion the only reasonable conclusion is that actual global crude oil production has probably been on an “Undulating Plateau” since 2005, with rising condensate production accounting for virtually all of the slow post-2005 increase in global C+C production, and note that annual Brent crude oil prices averaged $110 from 2011 to 2013 inclusive (remaining at $99 in 2014). [26] In regard to global supplies, the data strongly suggest that actual global crude oil production has been on an “Undulating Plateau” since 2005, while condensate and NGL, both byproducts of natural gas production, have continued to increase. [26]

China has said it will slap penalties on U.S. crude oil, though it will spare liquefied natural gas, because Beijing needs the cleaner-burning fuel source to weed itself off coal and reduce smog. [9] The administration will find that actions that pull crude oil away from a tight market have ramifications at home, despite the U.S. emergence as a powerhouse of crude oil production. [25] The most common dividing line between Crude and Condensate is 45 API gravity, but the crude oil distillate yield drops off considerably just going from 39 API to 42 API, and based on the most recent EIA data (April, 2018), about 43% of U.S. Lower C+C production exceeds 42 API gravity, which is the maximum API gravity for WTI crude oil (versus about 35% in April, 2015). [26]

Note the flat global C+C production from 2015 to 2017, versus rising global gas production, which implies a probable slow decline in actual global crude oil production from 2015 to 2017. [26]

The Trump administration is wading into the global oil market, succeeding in helping to convince OPEC Friday to end two years of production cuts to ease rising gasoline prices. [9] The growing importance of U.S. oil production is likely changing how OPEC producers think about responding to rising prices. [25] Global oil demand has grown since OPEC and a few other oil producers agreed to cut production in late 2016. [25] By 2020, 15 million barrels a day (mbd) of new oil supply may be needed to meet a projected annual average rise in global oil demand of 1.70 mbd and also offset an annual natural depletion rate in global oil production estimated at 5% or 4.8 mbd, virtually equivalent to Iraq’s output. [26]

Current infrastructure bottlenecks in the United States might delay this supply response somewhat, but U.S. production can certainly respond much faster than traditional large projects. [25] All of the industry’s growth in the U.S. over the last year was thanks to crude with a gravity above 40 on the American Petroleum Institute’s scale, which measures the weight of a petroleum liquid compared to water, according to analysts at Morgan Stanley. [26] The Department of Homeland Security is setting up an office that will work with Central American governments to inform them of reunification efforts for families that were separated at the border under the Trump administration’s zero-tolerance policy, DHS Secretary Kirstjen Nielsen announced during a trip to Guatemala Tuesday. [9]

It’s a perilous time in U.S. policy as the natural gas industry convenes in Washington this week for the World Gas Conference, the first time the U.S. is hosting the triennial event since the Reagan administration. [9] If Saudi Arabia is unable to plug the deficit, the U.S. would likely have to back down on its “zero tolerance” policy towards Iran. [26] Today the U.S. is unique among advanced nations in its degree of internal fragmentation, polarization, and policy gridlock. [13]

Book, however, said the contradictions in U.S. oil and gas policy are hard to ignore. [9] U.S. oil and gas acquisitions should surge in the second half of the year following a spring lull, with upwards of $50 billion in new deals anticipated as more companies aim to grow in Texas shale,. [23] U.S. oil and gas operations are releasing far more methane into the atmosphere than the federal government estimates, causing much more harm to the environment and undermining the case for cleaner-burning. [23] Pyle acknowledges the tariff fight is a “legitimate hit” to U.S. oil and gas. [9]

Today, U.S. oil production can respond more quickly to market conditions, meaning that periods of tight supply are likely to be shorter in duration. [25] Rapidly growing U.S. oil production likely changed the thought process of OPEC ministers, making the decision to raise production easier. [25]

There were considerable financial incentives to increase actual crude oil production post-2005. [26] About 43% of what the EIA calls Lower 48 “Crude oil” production is to light to be sold as WTI crude oil in 2018, versus about 35% in 2015. [26]

Nations that belong to the International Energy Agency, created by oil importing countries to enhance energy security, hold 90 days? worth of crude oil stocks in order to deal with supply disruptions. [25] The Trump administration is imposing barriers on its effort to dominate world markets with U.S.-produced natural gas and crude oil. [9]

Greater domestic oil consumption leaves less U.S. oil for exports that would both enhance American influence and reduce the trade deficit. [24] As all these factors play out in the global oil market, the November midterm elections are approaching in the United States. [25] This was the first OPEC meeting since President Trump announced that the United States would leave the Iran nuclear deal. [25] Trump wants Germany — an enormous gas purchaser — to buy American liquefied natural gas and is attempting to steal the market now held by Russia. [24] The other side: Pruitt argues that the fuel efficiency standards are a regulatory burden on automakers and that revoking them will make trucks, vans and SUVs more affordable for average Americans. [24] AMERICAN TRUCKER– Senior Fellow Steve Viscelli is interviewed about the trucking industry and how it can be improved. [28]

If approved by President Trump, the policy will create a conflict with California and the 12 states that follow its rules. [24] President-elect Andr Manuel Lez Obrador has powerful reasons — including economic and oil-sector realities– to be pragmatic, fellow Francisco Monaldi tells Foreign Policy. [4] To continue to base the policy on climate change in pseudoscience has the capacity to cause major damage to our government and its citizens. [13]

They have been factored long time ago by the global oil market so they will hardly have any impact on oil prices. [26] Super-light crude is flooding the U.S. oil market, and there’s little demand to meet it. [26] As likely Mexican president Obrador softens tone, U.S. oil. [23]

Over the long-term, there are also questions about the global oil industry’s ability to supply enough oil to the market. [26] An additional factor that may have weighed into the ministers? decision is the potential for a plateau in global oil demand. [25]

Improving the cost competitiveness of Canadian oil and gas : “For oil and gas producers, pursuing this pathway starts with their own energy use, because using less energy reduces both their carbon pollution and their production costs. [29] This is not a new challenge for Canadian oil and gas producers – the pursuit of lower costs and less energy use has been a focus of the business for years.” [29]

Small, vocal groups of activists across the nation work to obstruct energy development and infrastructure projects, reducing our energy options under a false belief that oil and gas production and use are incompatible with environmental progress. [16] Mexico’s energy reform has launched an ambitious process to end the long-standing state oil monopoly, holding the promise to increase oil production and bolster the overall economy. [11] The Trump administration has begun to dismantle the failed energy policies of the previous administration and to unleash America’s oil and gas producers from crippling federal regulations. [16] Today’s oil and gas companies need not be victims of the energy transition; they can be a critical part of it. [30] As I discussed in my closing speech at the OPEC seminar last week, the events of the past weeks suggest that there will be a continued need for close cooperation between oil producers and consumers over the coming months and years as the slow transition to a more sustainable energy future unfolds. [12] To date, Mexico has awarded 110 blocks over the last three years, including 28 blocks that hold prospective resources of over 30 billion barrels of oil equivalent according to data from Mexico’s Energy Secretariat. [15] The Canadian government released the Energy Future Council’s report Thursday and Albertans will be forgiven for thinking that the oil and gas section looks familiar. [29] Policies that encourage the development of America’s vast oil and gas resources could rebalance energy geopolitics, making our nation energy independent. [16] The second phase of JSC Gazprom Neft’s program to modernize and upgrade its Russian refineries to improve processing capacities, oil conversion rates, energy efficiency, production quality, and environmental impacts remains on schedule for targeted completion by 2020, according to a recent review of the program by the company’s board (OGJ Online, Dec. 2, 2013). [11] We must abandon policies driven by a zero-sum game philosophy for energy that says we must have less oil and natural gas so that we can have more of something else. [16] Crude oil prices below $50/bbl could force some producers to reduce capital expenditures if they go on for long, but are not likely to change U.S. energy policies, according to U.S. Sec. of Energy Ernest G. Moniz. [11] In its most recent monthly Short-Term Energy Outlook (STEO), the U.S. Energy Information Administration reported it expects global oil inventories to continue to build in 2015, keeping downward pressure on oil prices. [11]

In 2015, decisionmakers in Saudi Arabia saw a threat from the upstart U.S. producers and kept their oil output high, believing that a period of sustained low oil prices would force costly producers in the United States out of the market. [31] As shale producers in the United States proved exceptionally resilient even under low prices (due to rapidly improving productivity), Saudi Arabia–whose finances rely heavily on oil revenues–eventually caved and cut output to force a price increase. [31] That means when the United States is interacting with foreign oil producers politically–such as sanctioning Venezuela, Russia, or Iran–it still must be cognizant of how those actions will affect domestic oil prices. [31]

Policies that support development of American oil and gas resources don?t just mean more jobs, more economic growth and more money for federal and state governments. [16]

The U.S. Department of the Interior announced plans to hold a Gulf of Mexico region-wide oil and gas lease sale on Aug. 15 offering 77.3 million acre. [11] By aiming to take as much Iranian oil off the market as possible — at a time of collapse in Venezuela, robust global growth in oil demand, and infrastructure constraints in the U.S. — the Trump administration forced OPEC into pole position by making the health of the global economy dependent on its actions. [12] While, at least in the immediate term, the U.S. got what it wanted (more oil on global markets), it almost certainly could have enjoyed the same result with fewer costs through a more private approach. [12]

Global capital expenditures for oil and gas exploration and production projects are expected to drop 17% to $571 billion in 2015, according to Cowen and Co.’ s annual study of 476 oil and gas companies’ E&P capex budgets. [11] High oil prices encourage policymakers to act, but the best policy response is usually to do nothing: High prices on their own will incentivize increased non-OPEC production, improved efficiency, and fuel substitution. [31] All of these efforts have failed, with the RFS especially not only raising prices but also hurting incentives for domestic oil production more than those of foreign producers, AAF has shown. [31] Agreements to cut production, such as OPEC’s, are often difficult to maintain as higher oil prices encourage nations to boost production, but falling production in Venezuela allows other OPEC members to boost production without exceeding the overall compliance targets. [31] At an Organization of the Petroleum Exporting Countries (OPEC) summit last week, the cartel of petroleum exporters deliberated on whether to increase their oil output, eventually agreeing to increase total production by an assumed 600,000 barrels per day. [31] Another takeaway from the recent dance between OPEC and the U.S. is that, in matters of oil (and most other things), private diplomacy is superior to public shaming when the goal is to motivate others to take a particular action. [12] While the U.S. dollar’s value against other currencies influences the price of oil, the relationship is complicated. [11] High oil prices in the 1970s incentivized electricity producers to use less oil, and now America only gets 0.5 percent of its electricity from petroleum. [31] Expanding the scope of value-added oil and gas products and services for both domestic and export markets : “Diversifying the product mix produced by the oil and gas sector, with a particular emphasis on uses with lower life-cycle greenhouse gas emissions such as petrochemicals, non-combustion uses for bitumen, and using carbon dioxide to produce other products such as biofuels.” [29] They urged oil and gas companies to commit to winding themselves down when the time is right, and return money to investors, who are more qualified to decide what to do next. [30] It is also premature to discount the ability of today’s oil and gas companies to adapt. [30] Many of the world’s experts in these technologies are employed by oil and gas companies. [30] The oil and gas industry has come a long way, but even today, it accounts for a tiny share of low-carbon investment. [30] Based on current trends, IHS Markit expects total demand for oil and gas to rise by 30 percent between now and 2040. [30] Edward Cross is president of the Kansas Independent Oil & Gas Association. [16] During the oil crises of the 1970s, President Nixon implemented price controls on oil which lasted through President Carter’s Administration. [31] Higher oil prices also spur the consumption of alternative fuels, improvements in efficiency, and the substitution of equipment (e.g. electric vehicle adoption). [31] In late 2014, oil prices took a nose dive from over $100 per barrel to lows that dipped under $30 per barrel. [31] Some policymakers espouse the misguided notion that surging oil exports are partially responsible for rising gasoline prices. [16] As oil prices rise, the allure of government action to lower prices strengthens. [31] Policymakers today may be tempted to attempt to depress oil prices. [31]

This is an exciting time for the Alberta oil sands, with innovative new technology de-carbonizing increased production backed by new regulations and funding at both the provincial and federal levels. [29] Previous administrations spent significant time and effort considering how to manage the oil market implications of their preferred approaches to national security dilemmas. [12]

The world was in suspense a week ago wondering whether OPEC and non-OPEC producers would put more oil on tightening global markets. [12] Trump may be congratulating himself on moving OPEC to put more oil on the markets though his series of tweets berating the organization. [12] Venezuela alone represents 44 percent of the required output cut from OPEC. Elsewhere, conflict is flaring up in Libya’s oil crescent and disrupting output, and President Trump’s promise to reimpose sanctions on Iran threatens their oil sales on the market. [31]

Mischaracterizing oil and gas activity continues to be a common practice and strategy of activist groups. [16] How is it that most oil and gas project professionals responding to a recent survey report they believe in and practice front-end definition yet also say their greatest cost-reduction challenges are scope definition and changes during execution? This and other intriguing paradoxes emerge in findings of the survey of cost-reduction strategies by Westney Consultants and PennWell. [11]

As Environment Minister Shannon Phillips is fond of pointing out, carbon in the form of natural gas is a big cost in the oil sands. [29] They obstruct and delay oil and natural gas investments by building legal hurdles, propose excessive and duplicative rules and regulations, and call for increased taxes on oil and natural gas companies to create capital starvation for drilling. [16] This vision is threatened by those who want to restrain or even stop oil and natural gas development. [16]

In 1997, as chief executive of BP, I was the first leader of a major oil company to acknowledge that climate change was a problem, and that the industry had a responsibility to acknowledge and address it. [30] Small nuclear power for the oil sands might a bridge too far for Rachel Notley’s New Democrats, but proposals like lowering the carbon-intensity of oil are lifted wholesale from the Alberta playbook. [29] Whenever you hear Alberta oil sands producers talking about carbon-competitiveness, cost-competitiveness is sure to be in the same sentence. [29] The shale oil revolution meant the demise of OPEC, at least in theory. [31] The concerns of the White House were only one of a growing number of reasons OPEC was motivated to produce more oil. [12]

The shale revolution in the U.S. has challenged — and continues to challenge — OPEC as an organization because it adds a new “short cycle” dimension to global energy markets. [12] As solar and wind power costs continue to fall and deployment grows, please join our panelists as they analyze the outlook for renewable energy globally and renewable energy policies in the United States, China, and countries around the world. [14] The lesson of the latest OPEC agreement is that the United States is not yet comfortably “energy secure.” [31]

Solar energy, the world’s cheapest and fastest-growing power source, could one day supply most of the world’s energy needs. But in a new book, “Taming the Sun: Innovations to Harness Solar Energy and Power the Planet” (MIT Press), energy expert Varun Sivaram warns that solar’s current surge is on track to stall, dimming prospects for averting catastrophic climate change. [14] This levy would need to be high enough to encourage the shift toward lower carbon energy sources on the supply side, and to drive adoption and improvement of efficiency measures on the demand side. [30]

Unfortunately, while having more room to maneuver than its predecessors, the Trump administration still needs to manage these relationships and, to some extent, to think about the balance between energy markets and national security priorities. [12]

This suggest a new meaning to the administration’s policy of “Energy Dominance”: the ability of the president to make decisions without feeling constrained in his non-energy policy by energy realities. [12] Robert J. Anderson has been promoted to president of Earthstone Energy Inc., The Woodlands, Tex. Anderson has served as executive vice-president, c. [11]

Fatih Birol discusses the newest edition of World Energy Outlook, the prospects for renewable energy, and the outlook for energy markets in the coming year. [14] Consumption of renewable energy is expected to triple, but from a lower base: By 2040, it will account for just 6 percent of the energy mix, roughly the same as nuclear power today. [30] Since 1995, Energy Central has been a hub for news and content for electric power industry professionals. [32] If you have articles on The Energy Collective, all of your content will be moved over to your new profile page on the Power Industry Network soon. [32] You will be able to add content to the new The Energy Collective group on the Power Industry Network. [32]

When I took over as CEO of BP in 1995, the industry invested almost nothing in renewable energy. [30] This is the first time in my 50-year career in the energy industry that such a gathering has taken place. [30] Our content & community platform is organized around 6 major industry segments (our Networks – Utility Business, Generation, Grid, Intelligent Utility, Energy Management and Energy & Sustainability). [32] Energy Central has more than a dozen newsletters designed to inform industry professionals. [32]

The International Energy Agency says global fossil fuel consumption could be reduced 20 per cent with just this one initiative. [29] “The Council’s report is another step toward Canada’s bright energy future, but I am looking to all Canadians to continue to provide ideas, insights and views on how we can reach our destination of a reliable, affordable, inclusive low-carbon economy,” Natural Resources Minister Jim Carr said in a press release. [29] America is home to vast natural resources, but many of our energy policies are outdated and built on the notion that energy is scarce and becoming more scarce. [16]

Even if Jason Kenney becomes premier next year and undoes Rachel Notley’s energy policies which in my opinion would be a huge mistake he will have to come to grips with an aggressive federal government that has backstops for every one of Alberta’s policies. [29] Today, the “supermajors” allocate more than $4 billion every year to low or zero-carbon energy. [30] The decisions we make about energy in the years ahead are among the most profoundly consequential we will face. [30]

Future energy systems must provide more to more people, while extracting a lower economic, humanitarian and environmental cost. [30] To accelerate the transition and reduce the risk of damaging climate change, the International Energy Agency estimates that the current rate of investment in the energy sector would have to double, with 85 percent of all investment allotted to renewable energy and energy efficiency. [30] Energy storage technologies are increasingly viable for widespread application in transport systems and power grids. [30] Varun Sivaram discusses his forthcoming book, Taming the Sun: Innovations to Harness Solar Energy and Power the Planet. [14] Alberta has already taken a few modest steps in this direction with Energy Efficiency Alberta’s Business Non-Profit and Institutional Energy Savings Program, but $3.5 million doesn’t go a long way. [29] To cite Pope Francis: “Civilization requires energy, but energy use must not destroy civilization. [30] Lopez Obrador deflected questions, however, regarding the future of energy reforms, saying his administration is going to audit the upstream contracts to date and bring any anomalies to local and international courts and the legislature. [15] Central to our campaign to Keep Canada Working and get the Trans Mountain Pipeline built is Premier Rachel Notley’s belief that any climate plan that ignores the needs of working people is no plan at all,” an energy dept. spokesperson said in an email. [29] The need for cost-saving efficiencies and margin improvements in energy has never been greater, thanks. [11]

Policymakers should take time to understand the facts about energy and the obstacles to making it affordable and reliable. [16] A byproduct of his “energy dominance” approach has been to reinforce OPEC’s relevance at a time when the future of the cartel has been in question. [12]

Speaking of the gas sector, they’re having a tough time because of low prices and aggressive competition in traditional North American markets from U.S. shale producers. [29] This makes it harder for OPEC to reap the benefits of its actions and means that OPEC must tolerate American producers taking the market share of its members if they want to raise prices by cutting production. [12] Americans still care about OPEC because they still control enough of market production to influence prices. [31]

Prices dropped initially because shale oil production in the United States caused U.S. oil production to double from around 5 million barrels per day (b/d) to 10 million b/d (and still increasing, recently reaching 10.5 million b/d ). [31] As oil prices were relatively high most of that week, with Brent crude oil trading at $75 per barrel, even President Trump was on the bandwagon calling for OPEC to increase its production. [31] Despite huge increases in U.S. oil production, the combination of increased oil demand and artificial constraints on output through an agreement between OPEC and Russia, which together control more than half of global oil production, has forced prices to rise. [31] OPEC and Russia together controlled enough of global oil production that they could force a price increase by cutting output (a classic example of market manipulation by a cartel). [31]

The continued ability of OPEC to influence global oil prices demonstrates that the U.S. economy remains far from immune to the influence of other oil-producing nations. [31]

Two investment managers argued recently in the Financial Times that the end of the “age of oil” is in sight. [30] Expect new oil sands production to have the carbon-intensity of the average American crude oil cf. Suncor’s new Fort Hills mine and producers to apply new technologies to existing production, helped along by Alberta’s new Carbon Competitiveness Incentive Regulations and a $1.4 billion Innovation Fund. [29] Reagan’s lifting of price controls incentivized productivity and caused oil prices to fall in 1981, and more recently high prices were what allowed U.S. oil producers to take risks with shale production techniques. [31]

OPEC represents approximately 40 percent of the world’s crude oil production, and Russia around 13 percent. [31] Almost a carbon copy of Alberta policy and programs designed to reduce both costs and carbon-intensity of crude oil and natural gas, in fact. [29] The Bipartisan Policy Center issued a report outlining 40 possible options for reforming the federal Renewable Fuels Standard in an effort to move discussion of the controversial program beyond simply preserving or scrapping it. [11] In 2005 and again in 2007, Congress enacted the Renewable Fuel Standard (RFS), a policy intended to replace petroleum fuel with ethanol (mostly from corn). [31]

The latest proposed policy is a reconsideration of “NOPEC,” an old legislative effort that would allow OPEC members to be sued by Americans for market manipulation. [31] CAPP has released its own vision that more closely mirrors American policy no or almost no climate policy, emphasis on innovation not regulation, government support for new technologies, etc. that it says will fix Canadian competitiveness issues. [29]

Until recently, U.S. presidents have always rejected NOPEC, as it would legitimize the efforts of foreign actors to sue the United States. [31] The South American producer’s output has slid from 2.2 million barrels per day in 2016 to a mere 1.4 million barrels per day in 2018 due to the nation’s inability to invest in productivity improvements as it struggles with political and economic crises. [31] The head of the American Petroleum Institute claimed that I had “left the church. [30]

Such action, while potentially attractive politically, would be policy folly, as it ignores the market dynamics at work when prices rise. [31] Policymakers will continue to have incentives to focus on the near-term, but markets, as ever, hold much stronger incentives to diminish the power of cartels like OPEC, and that fact should be a guiding principle for any upcoming change in policy. [31] The best policy, as time has shown, is to minimize government interference. [31]

The light, sweet crude oil price for May dropped nearly $2/bbl on the New York market Apr. 2 while the Brent contract for June fell $1.70/bbl after. [11] Nebraska’s Supreme Court vacated a lower court’s decision that legislation transferring authority to determine the proposed Keystone XL crude oil pipeline’s route across the state to the governor from the Public Service Commission was unconstitutional. [11] The Alberta oil sands has declared its intent to be “carbon-competitive” and that means “taking carbon out of the barrel” bitumen and heavy crude oil. [29]

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1. (76) Energy policy of the United States – Wikipedia

2. (41) U.S. Sanctions Could Add $50 To Oil Prices | OilPrice.com

3. (39) Energy Tomorrow – Why the U.S. Must Import and Export Oil

4. (31) OPEC Still Influences Oil Prices – AAF

5. (28) What higher oil prices mean for OPEC and the U.S.

6. (28) United States, Saudi Arabia and Russia Find Agreement on Oil Policy – The New York Times

7. (25) OurEnergyPolicy.org | Can the US Phase Out Fossil Fuel Subsidies?

8. (19) Oil and Gas Companies Will Lead the Energy Revolution – Bloomberg

9. (18) Energy Future vision for producing cleaner oil and gas a rework of Alberta policies – except for using nuclear to electrify oil sands production – Energi News

10. (16) Energy – Axios

11. (16) Shale gas a game changer for U.S. energy economy | Global Energy Institute

12. (16) Trump’s ‘America First’ trade policy interfering with his ‘energy dominance’ agenda

13. (15) API | American Energy

14. (14) Oil & Gas Journal Articles, Jan 2015

15. (14) Lessons for Trump After His Clumsy Dance With OPEC | Belfer Center for Science and International Affairs

16. (13) Kansas energy development crucial to America’s independence | The Kansas City Star

17. (11) Houston Energy News | HoustonChronicle.com – Houston Chronicle

18. (11) With President Trump’s energy policies, Energy Independence Day isn’t far away | TheHill

19. (10) Energy News, Oil News, Gas News, Nuclear & Wind Industry, Gasoline at WSJ.com

20. (9) Oil and Natural Gas – Daily Energy Insider

21. (6) Reallocating Biofuels To Oil Refineries Compounds Bad U.S. Energy Policy

22. (6) Policies Archives – EnergyPost.eu

23. (5) Energy and Climate Policy | Council on Foreign Relations

24. (5) The Energy Collective

25. (4) Podcasts | Kleinman Center for Energy Policy

26. (4) Center For Energy Studies

27. (3) Mexico’s new energy policy to be announced in September: AMLO adviser | S&P Global Platts

28. (2) Columbia | SIPA Center on Global Energy Policy | United States, Saudi Arabia and Russia Find Agreement on Oil Policy

29. (2) Offshore Oil and Natural Gas Development Drives US Energy and National Security

30. (2) energy security Archives – EnergyPost.eu

31. (1) WHITE HOUSE: Trump asked OPEC for more oil. His allies say that’s weird — Wednesday, July 11, 2018 — www.eenews.net E&E News — Start a free trial

32. (1) Energy News