Comments Submitted to DOE Regarding NERA’s LNG Export Study

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We welcome the opportunity to comment on the report prepared by National Economic Research Associates (NERA) for the U.S. DOE on the benefits of U.S. LNG exports. NERA concluded that for a wide range of scenarios,  

…… the U.S. was projected to gain net economic benefits from allowing LNG exports.  Moreover, for every one of the market scenarios examined, net economic benefits increased as the level of LNG exports increased.  In particular, scenarios with unlimited exports always had higher net economic benefits than corresponding cases with limited exports.

 

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Natural Gas Industry Fakes the Moon Landing

Three recent articles from the New York Times: “Behind Veneer, Doubt on Future of Natural Gas,” “S.E.C Shift Leads to Worries of Overestimation of Reserves,” and “Insiders Sound an Alarm Amid a Natural Gas Rush” have created considerable attention and commentary throughout the petroleum industry.  A central theme in all of the articles is that the natural gas industry, investors, and policy makers have failed to understand the risky nature of the underlying fundamentals now underway in the domestic natural gas industry.  Claims are also made that some in the industry have purposely misled the public on the potential of natural gas as a “game changer” in the U.S. fuel mix.

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EPRINC Embassy Series: LNG Exports from North America

The second event in the EPRINC Embassy Series was held on January 29, 2013 at the Russian Embassy in Washington, D.C. The event, LNG Exports From North America: Understanding the Policy Debate, featured presentations by Jim Jensen, Piotr Galitzine and David Montgomery, as well as commentary by Charles Ebinger and Michelle Michot Foss. EPRINC is grateful to the Russian embassy for its hospitality and support of this event and in particular would like to thank H. E. Sergey I. Kislyak, Ambassador of the Russian Federation to the U.S. and the Honorable Yury P. Sentyurin, State-secretary – Deputy Minister of Energy of the Russian Federation.

 

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Lighting Up the Prairie

Economic Considerations in Natural Gas Flaring

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(updated September 5, 2012)

Executive Summary 

Advances in oil and gas drilling and production technology have made the U.S. the world’s largest producer of natural gas. These same technological breakthroughs that have brought about a surge in domestic natural gas output are now yielding large and sustainable increases in domestic oil production. The rise in oil production also has been accompanied by substantial increases in the flaring of associated natural gas, gas that comes up the wellbore along with the production of crude oil.  Policy makers, regulators, environmental groups, and a large number of commentators have raised concerns that the flaring of natural gas is both wasteful and harmful to the environment.   In July 2012 the World Bank published new satellite data on flaring showing the U.S. provided the single largest addition to world flaring in 2011 (total U.S. flaring lags far behind Russia and Nigeria in comparison). 

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American Fuels – Opportunities and Challenges for the U.S. Refining Industry

Preview from a Forthcoming EPRINC Report

 

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Rising production of domestic unconventional oil and gas production, alongside steadily growing Canadian oil sands shipments to American refiners, provides the U.S. economy with the potential for a sustained renaissance in the production of refined petroleum products. As early as 2016, U.S. and Canadian combined oil production, largely from technological advances in developing new unconventional resources, are likely to raise North American liquids output by 3 million barrels/day (b/d) above 2011 levels. Water borne crude oil imports into the North American continent likely will fall to 4 million b/d by 2016.

 

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