Energy Markets

November 14, 2024

Why Trump’s ‘drill, baby, drill’ policies will not reduce U.S. oil and gasoline prices

Donald Trump won a return to the White House in part by convincing American voters that he would unleash more oil and gas production, which would reduce fuel prices, curb inflation and cut grocery prices. But petroleum industry experts doubt this will work in a global market. Energy experts say American companies will not simply produce more petroleum and sell fuel at a lower price because competing nations like Saudi Arabia could simply reduce their own production and keep global prices high for their own financial or political reasons.

Brendan Gibbons

September 26, 2024

A debate over $100 billion in taxpayer subsidies could set the fate of the U.S. hydrogen industry

When hydrogen is burned, it releases only water vapor and no greenhouse gases, making it a potentially climate-friendly fuel for uses like steel production and cement manufacturing depending on how the hydrogen is made. But hydrogen is expensive to produce, which is why the Biden Administration and Congress provided up to $100 billion in taxpayer subsidies for hydrogen production in the 2022 Inflation Reduction Act. Those proposed rules have ignited a debate over how strict those rules should be, with some energy companies lobbying for subsidies for hydrogen made from natural gas.

Ari Phillips

September 19, 2024

Latest version of energy permitting fast-tracking bill has environmental movement balking

In late July, senators Joe Manchin and John Barrasso, who represent two of the U.S.'s biggest fossil-fuel producing states (West Virginia and Wyoming) announced the latest iteration of their long-sought bill that would accelerate the permitting process for energy projects—including LNG plants, electricity transmission lines, clean energy and fossil fuel power plants. Called the Energy Permitting Reform Act of 2024, the senators said the legislation would, “strengthen American energy security by accelerating the permitting process for critical energy and mineral projects of all types.” But environmental groups criticize the bill for giving away too much to polluting industries and fast-tracking a review process meant to protect public health and the environment.

Brendan Gibbons

September 12, 2024

The outlook for the oil and gas industry under President Harris vs. President Trump

Under a Democratic administration led by Vice President Kamala Harris, federal climate policy would likely continue down the Biden Administration’s path – which has meant both billions of dollars invested in clean energy while also allowing for record-breaking oil and gas production. By contrast, former President Donald Trump and his allies have vowed to repeal Biden’s clean energy policies, abandon the country’s climate goals, slash regulations, and speed up oil and gas permitting and leasing. In short, “drill, baby, drill!” as Trump frequently proclaims on the campaign trail.

Brendan Gibbons

August 15, 2024

Texas program that subsidizes fossil-fuel electricity turbo-charges 72 power plant applications

The state’s Public Utility Commission (PUC) received the applications for loans under the Texas Energy Fund Program, the agency announced in late July. Following widespread power outages during a winter storm in 2021, Texas voters in November 2023 approved the low-interest loan program proposed by the Texas Legislature in an effort to increase generation capacity and avoid blackouts. However, many environmentalists question whether new gas generators are the right answer because they contribute to climate change, and some consumer advocates and energy analysts say it will not address the need to modernize the Texas grid to prevent more outages.

Brendan Gibbons

August 1, 2024

Environmental Integrity Project launches updated Oil & Gas Watch database and news site

The Oil & Gas Watch database and news site are being re-launched today (Aug. 1) with new features to make it easier for users to track oil and gas developments in local areas and gather national data on the growing industry. The database features a new “alerts” function to highlight new projects, updates, and public hearings. It also has new search tools; the projected greenhouse gas and related health impacts of projects; new maps; and sharable summary pages for industries. We also redesigned the Oil & Gas Watch News site and email newsletter. We are hosting a free virtual webinar at 1 p.m. Eastern time on Aug. 21 to explain how to use the new database.

Brendan Gibbons

February 6, 2024

Biden’s LNG pause won’t slow the flow of U.S. natural gas abroad

The Biden Administration's decision to temporarily halt a review of new liquified natural gas (LNG) export permits will do little in the short term to stop the U.S.'s export boom. It will not block exports from the seven LNG terminals currently exporting from the U.S., nor the 16 projects that have already been authorized or are under construction—including 12 new terminals and four major expansions at existing plants.

Brendan Gibbons

January 18, 2024

The U.S. dominated the global oil and gas industry in 2023 despite pledges about clean energy

Overall, 2023 was a year of opposing trends in the U.S. oil and gas industry under a Biden Administration that both launched unprecedented policies to speed the transition to cleaner energy and also opened the door for record-setting fossil fuel production. Last year, the country became the world’s largest producer of oil and maintained its status as the top producer of natural gas, while also becoming the world’s largest gas exporter.

Brendan Gibbons

November 1, 2023

Texas voters to decide whether to funnel $10 billion in taxpayer money to natural gas power plants

Next week, Texas voters will decide whether to amend the state’s constitution to provide $10 billion in taxpayer money to build more natural gas-fired power plants – a new subsidy for fossil fuels in a state that already gets most of its electricity from natural gas. The measure on the ballot on Tuesday, known as Proposition 7, would create a “Texas energy fund” that would be used to provide grants and low-interest loans to companies building natural gas plants. Critics say the program would create a never-ending flow of taxpayer money to the natural gas industry.

Brendan Gibbons

October 12, 2023

Oil & gas companies and investors placing big bets on federally-subsidized carbon capture projects

The world’s largest energy financiers – including oil and gas majors like ExxonMobil and Chevron – are investing billions of dollars in technology intended to capture carbon dioxide. Many supporters of carbon capture and storage see the technology as a path to lessen the climate impact of major industries and to offset the carbon dioxide emissions from major companies whose shareholders are pushing them towards carbon neutrality. But it remains unclear how many of these projects will become a reality or work.

Ari Phillips

September 27, 2023

Chinese ammonia plant in Louisiana could receive U.S. taxpayer subsidies

Louisiana's Ascension Parish, located along the Mississippi River between Baton Rouge and New Orleans, is becoming a focal point of the fast-growing, federally-subsidized carbon capture industry. One proposed plant that would manufacture ammonia from natural gas and inject its waste underground is being developed by a partnership majority owned by the Chinese government.

Lottie Mitchell

August 29, 2023

Despite Biden climate promises, oil production on federal lands is rising

After a campaign pledge of "no more drilling on federal lands," the Biden Administration approved 8,072 drilling permits on public lands from the month after the president’s inauguration through July 2023, nearly as many as the 8,293 under former President Donald Trump for a comparable period. The total amount of oil produced with these permits is higher so far under President Biden than Trump.

Alexandra Shaykevich

August 22, 2023

What causes long-delayed 'zombie' projects? The market, not government permit reviews

At least seven oil and gas mega-projects across the U.S. have delayed construction as a result of bankruptcy, financing delays, or market forces. All of these projects -- including an LNG terminal and two fertilizer plants -- were issued permits to allow construction more than seven years ago but have failed to move forward. The reality that often it's economics -- not slow government reviews of environmental permits -- that creates long-stalled "zombie" projects undercuts arguments that Congress needs permitting reform to fast track permit approvals.

Brendan Gibbons

July 12, 2023

The U.S. LNG export boom is spreading to Mexico, creating new environmental threats

Developers are planning six LNG terminals capable of liquefying and exporting natural gas from Mexico, including three planned for highly sensitive areas of the Gulf of California in the country’s northwest. The LNG terminals would rely on U.S. natural gas, mostly from West Texas, and would export most of their gas to Asian countries. The Mexican terminals could compete for customers with 30 new or expanding U.S. LNG terminals either under construction or proposed but not yet built, mostly in the Gulf of Mexico.

Alexandra Shaykevich

April 5, 2023

American households could be left in the cold as gas exports skyrocket

The liquefied natural gas (LNG) industry is growing faster than ever. Three new projects to build or expand liquefaction capacity were announced during the first three months of 2023 alone, along with major financial milestones reached in March on another two projects. That’s on top of the 27 new or expanding LNG terminals already in the pipeline. If all these projects materialize, they would triple the sector’s liquefaction capacity to more than four times the amount that Americans used in 2022 to run gas stoves, heat and cool their homes, warm their water, and run other gas-fueled appliances.

Brendan Gibbons

January 17, 2023

What House Republicans have planned for the oil and gas industry

After a messy confirmation process for House Speaker Kevin McCarthy, Republican leadership signaled a plan to introduce bills that would boost oil and gas production and speed the permitting process for pipelines and other large facilities. In an event last week with the American Petroleum Institute, House Energy and Commerce Chair Cathy McMorris Rodgers said legislators are working on a “package of bills” that would “secure American energy.”

Brendan Gibbons

January 11, 2023

Stalemate at FERC could stall Biden clean energy plan, landowner rights reform

Willie Phillips, who’s served on the Federal Energy Regulatory Commission since December 2021, will become the new acting chair of the commission, or FERC, an independent agency that regulates the interstate transmission of gas and electricity. Advocates say FERC need reforms to strengthen landowner rights and accelerate a shift away from fossil fuels. However, Phillips' nomination and the departure of former chair Richard Glick mean the commission is split 2-2 among Republicans and Democrats.

Courtney Bernhardt

October 25, 2022

Is hydrogen fuel worse for the climate than coal? It all depends on how it’s made

Hydrogen fuel can be produced by using only water as a basic ingredient and energy from wind and solar. In theory, when it is made this way, hydrogen is a clean fuel -- although a very expensive one -- that emits no carbon dioxide when burned, only water. But most hydrogen fuel today is not so clean, because it is produced using natural gas or coal. Companies are planning to build or expand at least 29 of these kinds of fossil-fuel hydrogen plants across the U.S., and one recent study concluded this kind of fuel is worse for the climate than coal or oil.

Brendan Gibbons

August 3, 2022

In East Texas, organizers fight massive oil export pipeline planned for popular fishing grounds

Energy Transfer Partners, one of the nation’s largest pipeline companies, plans to build a pipeline to carry oil from the northern U.S. and Canada to a terminal near Port Arthur, TX, where ships could carry that oil abroad. The project is part of an explosive growth in U.S. oil exports, which rose from an average of 42,000 barrels per day in 2010 to 3.3 million barrels per day in 2022.

Alexandra Shaykevich

July 26, 2022

The market can't handle fast-tracking LNG. Neither can the climate.

In response to Russia’s war on Ukraine and soaring fuel prices, some U.S. politicians have been advocating for faster environmental review and approval of permits for liquefied natural gas (LNG) export terminals. But there is no need to rush. Neither the market nor the climate can handle a glut of LNG. And building all 20 LNG projects already authorized in the U.S. would consume 37 percent of U.S. natural gas, worsening gas prices and inflation for Americans.

Tom Pelton

July 14, 2022

Welcome to Oil & Gas Watch News

Greenhouse gases are driving profound changes to the Earth’s climate, contributing to record-breaking heat waves and millions of acres of wildfires, among many other problems. Some industry advocates have tried to position natural gas as a “bridge fuel” to a green future. Oil & Gas Watch News examines the data and public records and sets the record straight.