- Energy industry moving back to United States
- BooneCam | February 19th, 2014
Congratulations! We live in the only country on Earth whose oil and gas production is increasing along with its reserves. America is enjoying an energy renaissance while the rest of world is suffering a decline in reserves and production and a corresponding increase in prices.
This is big news. Cheap, abundant, domestic energy affects everything from employment to cost of living, and from the environment to national security. It makes the U.S. more appealing to manufacturers. And our dependency on OPEC oil continues to decrease.
These newfound energy resources are a great national treasure. Watch this video for my thoughts. Then tweet me yours at @BoonePickens.
- Brand New Year, Same Old Story
- The Daily Pickens | February 24th, 2014
Despite the fact that domestic energy numbers are surging and newer vehicles are becoming increasingly efficient, America’s dangerous addiction to foreign oil shows little sign of diminishing in 2014.
According to figures released by the Energy Information Administration this week, Americans spent more than $30 billion on imported oil in January. That’s a little less than what we spent in December, and it’s a little more than what we spent in November. These minor fluctuations can be attributed to minuscule differences in the price per barrel and the number of barrels imported.
Same story, different year. But wait … it gets worse.
It turns out that the amount of oil we imported from OPEC countries actually increased. According to the most recent figures from the Energy Information Administration - November 2013 - the U.S. imported 106 million barrels of OPEC oil at a total cost of $11.4 billion.
Isn’t it time America got the energy plan it deserves?
- Ohio Helping to Chart Nation’s Energy Path
- The Daily Pickens | February 5th, 2014
The following op-ed by T. Boone Pickens ran in The Columbus Dispatch on Wednesday, February 5, 2014.
Last week, in his State of the Union address, President Barack Obama made a renewed call for further development and utilization of natural gas. Here in Ohio, on the edges of both the Utica and Marcellus shale plays, natural gas has become an important economic driver.
Until 2009, natural gas was considered a limited resource. Then new drilling techniques began to offer the promise of recovering enormous amounts of natural-gas deposits contained in shale under the continental United States at an economically viable price.
A drive down the Ohio River Valley, through Jefferson, Monroe, Noble and Washington counties demonstrates how shale gas already has had a positive economic effect on towns along the way.
Ohio has a long history in the oil and gas industry. The first oil boom began in Titusville, Pa., in 1859 and went through Marietta, Ohio, before it spread west to Oklahoma and Texas.
Let’s use the American energy renaissance to our advantage. The worst thing we can do is be lulled into a sense of security and think the national-security and economic threats posed by our reliance on OPEC oil have been solved.
Gov. John Kasich and his peers across the nation can have a major impact on U.S. foreign policy in the Middle East. Even with the increased production of gas and oil — which the president highlighted last week — America still imports about 40 percent of the oil we use from OPEC. The annual transfer of wealth to Middle Eastern governments is in the area of $130 billion.
Most of the chatter on the cable shows and out of Washington misrepresent the use of fossil fuels. They correctly talk about wind and solar to replace coal as fuels to generate electricity. I’ve been saying since I started the Pickens Plan in 2008 that I’m for everything American, and wind and solar have a promising future, but it’s misleading to say they help to reduce our dependence on OPEC oil. That’s just wrong. Only about 1 percent of our electricity is produced from oil.
The only way to bring down that $130 billion OPEC price tag is by looking for a transportation fuel that will replace OPEC oil. That fuel is natural gas. Despite the stunning resurgence in domestic oil production, gasoline prices in the U.S. remain largely unchanged. That’s because OPEC — a cartel we protect with our military — still largely controls world oil prices. The logical way to combat that is to inject serious competition into the transportation-fuel mix. Let’s start with domestic natural gas.
We may see natural-gas fueling stations in neighborhoods, but before we get to that point, we can immediately move from imported diesel to domestic natural gas by focusing on heavy trucks. We have about 8 million heavy-duty trucks in America; everything from refuse and recycling trucks that move at walking speed through neighborhoods to the 18-wheelers that run the long-haul routes on our interstate highways . These trucks tend to run the same routes on a regular schedule, so building out refueling facilities along the interstate highway system is a relatively simple logistical process.
Ohio is uniquely involved in the process of migrating from Middle Eastern oil to domestic natural gas. Not only is Ohio a natural-gas producer, it is a major player in over-the-road truck traffic moving goods from West Coast ports to markets in the East.
By moving quickly toward making natural gas the standard fuel for heavy trucks, Ohio is helping to lower our dependence on OPEC oil. At the same time, Ohio is helping to improve the standard of living in areas where drilling is taking place and, along with other states, improving our environment, because natural gas is far cleaner than diesel.
Ohio has helped lead the way, but more can be done. For example, Ohio is looking at changing the weight rules to allow heavy-duty trucks powered by liquefied natural gas to carry the heavier fuel tank necessary. If Ohio allows LNG-powered trucks to have a higher fuel limit, those trucks will be able to carry the same amount of cargo as a diesel-powered truck with far less environmental impact.
Obama endorsed natural gas in heavy-duty trucks in his State of the Union speech last week. He also called for a year of action. Ohio is acting, and leading. Let’s keep the momentum going. Just like the original oil boom, it looks like the next generation of America’s energy future begins here.
Read more HERE.
T. Boone Pickens is chairman and CEO of BP Capital and architect of the Pickens Plan, an energy plan for America. He will speak today to The New Albany Community Foundation, launching the Jefferson Series of community lectures at the Jeanne B. McCoy Community Center for the Arts.
- President’s State of the Union: A plan without action isn’t a plan. It’s a speech. Let’s act on energy.
- The Daily Pickens | January 29th, 2014
President Barack Obama talked about energy in his State of the Union address as every President since Richard Nixon has done. In his State of the Union address, President Obama came out strongly for the continued development of natural gas as a major American resource.
That is great news and music to my ears. I have championed a comprehensive national energy strategy – the Pickens Plan – since 2008, with natural gas as a cornerstone. The goal has been to get off OPEC oil by using natural gas for heavy duty trucking.
While I’m obviously heartened by the President’s endorsement of that, I’m also a realist. A plan wihout action isn’t a plan, it’s a speech. The OPEC oil threat is real. Our national security is threatened by it as is our economic future. After 40 years we just take OPEC for granted, and that’s a big mistake.
As far back as his first State of the Union, President Obama talked about creating and moving energy in new ways. He said “We will soon lay down thousands of miles of power lines that can carry new energy to cities and towns across the country.”
Few, if any, miles of new power lines have been proposed, much less sited, engineered or installed. Great plan. No action.
In January 2009 our national energy mix was as it had been for decades: Diminishing domestic oil production, falling levels of natural gas reserves, solar and wind were interesting but difficult to bring to market. Then the Potential Gas Committee released its biennial report that, for the first time, counted what was then known as “unconventional” gas – now known as shale gas – as economically recoverable using modern drilling techniques and the nation’s energy profile was turned on its head.
Credit goes to private individuals and companies taking a chance, risking their money, and using the best minds in the nation to develop new production techniques. They were not the result of a plan – not a Republican plan nor a Democratic plan.
Last night the President endorsed a principal element of the Pickens Plan when he called for new incentives for medium- and heavy-duty trucks to run on natural gas and other fuels. I’m for unleashing every American resource to back out OPEC oil, be it ethanol, batteries or anything American. But ethanol and batteries won’t move America’s 18-wheelers.
We need to be watchful that the President follows through on this by incenting the move from imported diesel to domestic natural gas, by working with major interstate truckers, express delivery companies, and truck manufacturers, as well as state and local governments.
Oil is not a player in the production of electricity in America. It accounts for only about one percent of power generation. The rapid move from coal to natural gas (as well as to wind) to produce electricity has led the U.S. Energy Information Administration (EIA) to claim that greenhouse gasses from fossil fuels were the lowest in 2012 than any time since 1994.
The real advantage these new reserves of natural gas and oil bring to us, is that we move farther and farther away from the next energy crisis. That is a mixed blessing because our national leaders – for over 40 years – have only acted when a crisis has loomed over their collective heads.
We have over eight million heavy trucks on our roads. Everything from refuse and recycling trucks that go back to “the barn” every night, to over-the-road trucks that run coast-to-coast over the same routes on a regular schedule. Simple arithmetic tells us where to put natural gas refueling stations on the most heavily traveled Interstate highways.
In last year’s State of the Union speech, President Obama said, “The natural gas boom has led to cleaner power and to greater energy independence. We need to encourage that.” That is still a good policy. With so much natural gas we should be looking for ways to utilize our vast supplies – especially where we can use it to replace imported oil.
The President’s focus on natural gas in the 2014 State of the Union speech is important because it helps us keep our eye on the ball. Now, we have to work with leaders at the federal, state, and local levels as well as the companies that will build, fill, and drive the trucks across America to make certain we keep moving toward an economy that is not dependent on OPEC oil.
If the president is serious on natural gas and trucking in America, here’s an idea: Lead by example. Sign an executive order mandating government vehicles use natural gas, and that those who contract with the federal government for goods and services do, too. Because natural gas is so much cheaper than diesel, you can make the case that such an order is fiscally responsible as well as environmentally beneficial.
President Obama was right on one other point last night: Let’s make this the year of action. There is a domestic energy renaissance in America, with natural gas production leading the way. Let’s act and take advantage of it.