Texas Oil and Gas Taxes Surge in 2014
2014 was a banner year for "state and local taxes and royalties" from oil and gas production in Texas.
An op-ed by Texas Oil and Gas Association President Todd Staples in the Star-Telegram explains just how impactful this money was across the state.
Cooperating to Protect Valuable Water Resources
Energy companies in Texas are driving the development of technologies that reduce water usage in the production of our shale energy resources. The Associated Press reported this week that energy "companies using hydraulic fracturing in Texas say they are recycling more water than ever before."
The AP cited recent testimony by Texas Railroad Commission Chairwoman Christi Craddick explaining that these successes were due, in part, to recent moves by the Texas Legislature to encourage industry led water conservation efforts. Craddick noted that the recent rule change brought about a cooperative approach intended to allow companies to "be innovative" in their approach to water conservation. This approach has resulted in significant gains in water conservation.
Debunking Methane Myths - Take Two!
Several weeks ago we examined the new set of talking points that anti-shale activists have used to attack the strong environmental record of shale gas. As we noted then, activists are now claiming methane emissions from shale gas production operations mean that these energy resources are much more harmful than previously thought.
The fact that activists settled on this issue as their latest angle to attack American shale energy was no coincidence. Natural gas is a low carbon fuel and this fact does not sit well with many professional supporters of other more expensive forms of energy. Media outlets were quick to seize on the issue as the "fracking’s Achilles’ heel."
Unfortunately for these handwringing activists and their media cheerleaders, these claims are now coming unraveled. While the idea that natural gas is somehow a climate menace always rang a little hollow, new research is demonstrating just how off base these claims are.
Showing Shale Energy the Love
In the spirit of Valentine’s Day, now is the perfect time to show a little love for the overlooked and underappreciated sources of energy that make our modern lives tick.
Boston Globe columnist Jeff Jacoby did just that in his "valentine for fossil fuels" this week. Contrary to the calls by some radical climate activists for Americans "to sever our ties with the fossil fuel industry" through divestment and other measures, Jacoby presents a compelling case that we should celebrate the contributions of the energy industry to our daily lives.
Jacoby points out that "the rise of fossil fuels has led to dramatic gains in human progress — whether that progress is measured in terms of life expectancy, income, education, health, sanitation, transportation, or leisure. Nearly everything that is comfortable and convenient about modern civilization depends on the ready availability of energy." Even the most radical activists understand this, as they "know better than to push people to give up electricity, air travel, computers, or central heating — all of which would vanish without the fossil fuel industry."
Inoculating Against Shale Energy Ignorance
An interesting connection was made this week by Forbes contributor Bill Tucker in his article "Its Not The Fracking Making Trouble in Texas". Tucker zeroes in on the anti-vaccination movement and explains that there are common threads among this and other anti-science movements that have taken root in communities across the United States.
According to Tucker, the "anti-vaxxer crowd has on its side nothing except bad science and a lot of emotion…What does that debate have to do with energy? Bad science just keeps appearing everywhere propelled by powerful emotions."
Manufacturing a Stronger America
A robust manufacturing sector has been a key component of the American economic recovery in recent years. A closer examination of the recovery demonstrates that affordable and reliable shale energy has been vital to this economic progress.
The importance of shale energy on American manufacturing was explained by Bryan Iams of PPG Industries in a recent article in The Hill. Iams writes that "now, more than ever, manufacturing is making important contributions to our economy.” American "manufacturing accounts for more than 17 million, well-paying American jobs, and output has increased by 18 percent since the official end of the recession in 2009. For the first time, manufacturing contributes more than $2 trillion to the U.S. economy, 12.5 percent of America’s gross domestic product."
Iams explains that a key reason for the healthy state of American manufacturing is the "availability of affordable energy," and he notes that "plentiful, affordable natural gas is benefiting U.S. manufacturing" as "exports of manufactured products have risen 6 percent since the start of America’s shale-gas production boom."
Boosting the Middle Class
The Wall Street Journal featured a fascinating article this week about 24-year-old welder Justin Friend of Bryan, Texas. The story of Friend’s success is a testament to the power of the shale revolution and should also be a sharp rebuttal to anyone who thinks that there is no future for Americans working in skilled trades and manufacturing.
According to the article, Friend "attended Texas State Technical College in Waco, and received a two-year degree in welding." This led him to a full time position as a welder for "Acute Technological Services, a Houston-based unit of Oil States International, Inc." In 2013, Friend earned $130,000 in this position, and by "2014 (his) income rose to about $140,000."
Making Resolutions
Happy New Years from CLEAN Resources! Hopefully you have enjoyed a relaxing holiday season with friends and loved ones.
As 2015 begins, Americans are engaged in the annual ritual of making resolutions for the new year. Might we suggest including an energy related resolution on your list?
In recent years, the debate over our energy future in Texas, and beyond, has been dominated by extreme voices with ideological goals that are not related to the facts and science of energy policy matters. Therefore, the public discussion would improve if everyone agreed to approach energy issues in 2015 with an open mind and devotion to getting the facts from credible sources.
An op-ed in The Bryan-College Station Eagle by Texas A&M professor Dan Hill offers some useful perspective for consuming news on shale energy topics. Professor Hill, who serves as the Noble Chair of the Harold Vance Department of Petroleum Engineering at Texas A&M University, urges the public "to be savvy consumers of information and to keep an eye out for claims masquerading as ‘science,' which have been widely discredited by scientists and experts."
A Time for Perspective and Appreciation
Supporters of American energy can be consumed by the issues of the day or week, and we often lose sight of the truly amazing aspects of the American shale energy revolution. The holiday season is the perfect time to slow down and take a broader look at exactly why the American shale energy revolution has been so important to our nation.
An article by Wall Street Journal columnist Bret Stephens ("The Marvel of American Resilience") frames this conversation in an interesting way. Stephens asks readers to "imagine an economic historian in the year 2050 talking to her students about the most consequential innovations of the early 21st century—the Model Ts and Wright flyers and Penicillins of our time. What would make her list?"
Stephens thinks that the innovations that led to the shale energy revolution would be certain to make the list along with social media, mobile information technology, and newly discovered medical innovations for treating cancer and other diseases that still claim too many lives. "Surely fracking—shorthand for the combination of horizontal drilling and hydraulic fracturing that is making the U.S. the world’s leading oil and gas producer—would be noted."
Empire Statement
New York Governor Andrew Cuomo announced this week that his administration would prohibit “hydraulic fracturing in New York State because of concerns over health risks, ending years of debate over a method of extracting natural gas.” This move was hailed by anti-shale energy activists, but many analysts observed that it was a nakedly political move that had little to do with science or data.
Katie Brown of Energy In Depth was among the commentators pointing out the inaccuracy of the claim “that there isn’t enough scientific evidence to ensure the process (of hydraulic fracturing) is safe.” In fact, according to Brown, many of the studies cited by the New York Department of Health as influencing their decision have “been either discredited or shown to have exceedingly faulty methodologies.” Also, “when discussing just about every one of these dubious studies, DOH admits that they actually didn’t have any evidence to link hydraulic fracturing to health impacts.” Michael Lynch of Forbes observed that the move gives the impression that “regulation (in New York) is a popularity contest, not science driven.”