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Energy Is Everything

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Energy Is Everything 2017 ENERGY IS EVERYTHING STATE OF AMERICAN ENERGY AMERICAN PETROLEUM INSTITUTE INTRODUCTION MESSAGE FROM JACK GERARD The 2017 State of American Energy report through lower home energy costs2 as well API PRESIDENT AND CEO looks at today’s energy reality: how energy as lower costs of goods and services as intersects with our daily lives, and how we a result of the abundant supply of North can reach our nation’s bright energy future American natural gas. None of this happened if we make the right policy choices today. by chance. America’s ability to become a This year’s report coincides with the global energy leader in less than a decade is beginning of a new chapter in American the result of market-driven innovations and history, the start of a new administration private sector entrepreneurial forces. These and Congress. Last year, polls consistently gains and tangible benefits to consumers said voters from both parties wanted our underscore what’s at stake when it comes to nation’s leaders to address economic growth our nation’s energy future. and accelerate job creation. And all voters want an energy future that respects and This year’s State of American Energy report protects our air, land and water, and that provides a close look at the state of modern provides reliable, affordable energy for American energy: the benefits of the our daily lives. The right energy policies are American energy revolution to consumers critical to accomplishing all of these goals. through lower costs and to the environment, thanks to abundant, cleaner-burning, The very ubiquity of oil and natural gas as domestically produced natural gas; and the a source of electricity, fuel and manufacturing need to improve and expand our nation’s feedstock for everyday products makes energy infrastructure and maintain our place our nation’s energy discussion more than a as a global energy leader. collection of abstract policy positions or partisan talking points. Ultimately, energy The report examines how, in ways large policy is about the direction, quality and and small, energy touches every part of our prosperity of our lives and the economic daily lives. And it provides a broad vision for opportunity of future generations. President what our nation’s energy future should be Trump and the incoming Congress will in order to take full advantage of our energy inherit a country with a growing population resources, maintain our position as the and economy at a time of historic domestic world’s leading producer of oil and natural energy production. All while, according to gas, and continue to provide American the Energy Information Administration (EIA), consumers with abundant, affordable and greenhouse gas emissions from electricity reliable energy. Energy is fundamental to our society. generation are at their lowest point in 25 years Our ability to responsibly produce, safely thanks to increased use of North American The 2017 State of American Energy report distribute, store and efficiently consume natural gas. makes clear that the policies our elected the energy we need to maintain our representatives choose and the actions standard of living while lessening the For the American consumer, the nation’s they take today will determine whether this impact on the environment is crucial energy renaissance has meant lower energy nation’s 21st century energy renaissance to our shared goal of a better future costs, an average of more than $550 saved endures and delivers the energy, economic for the next generation. on gasoline costs, according to the American opportunities and national security through Automobile Association (AAA).1 And American global energy leadership that Americans families saved, on average, $1,337 in 2015 today and in the future deserve. 3 ENERGY TODAY TABLE OF ENERGY IS ALL CONTENTS AROUND US. INTRODUCTION Message from Jack Gerard .........................................................3 ENERGY IS ... ENERGY TODAY Energy Revolution ..........................................................................8 Lowered Consumer Costs ..........................................................8 EVERYTHING. ENERGY BRIEF: American Energy Drives American Competitiveness ...........................................................................11 Fueling America’s Economy ......................................................12 ENERGY BRIEF: Renewable Fuel Standard ............................13 Fueling Our Future .....................................................................14 Emissions Reductions ................................................................16 ENERGY BRIEF: Ozone Standards .............................................17 Industry Leadership Through Responsible Development ...20 Safety Standards ........................................................................20 ENERGY BRIEF: API Publication 1509 Protecting Consumers .....................................................................................21 Energy Security .............................................................................22 Reliable Power ............................................................................22 CASE STUDY: Alaska’s Restricted Access to Energy Resources .......................................................................................24 Infrastructure ..............................................................................26 ENERGY IS ... EVERYTHING Pull-Out Infographic: Our Day of Energy ...............................28 ENERGY TOMORROW Growing Our Economy ................................................................31 Hydraulic Fracturing: The Engine of America’s Energy Resurgence ..................................................................................31 ENERGY BRIEF: Good Standards Make Good Neighbors and the Natural Gas Solution ...................................................33 CASE STUDY: Building the Workforce of the Future ..................................................................................34 Energy Exports: Expanding U.S. Global Energy Leadership ..........................................................................36 Infrastructure Opportunities....................................................40 Securing Our Energy ....................................................................42 Accessing Our Resources ..........................................................42 Pro-growth Tax Policy ................................................................46 Keeping Fuel Choices Affordable ............................................48 CONCLUSION 4 Resources ....................................................................................54 5 ENERGY TODAY …IS WHAT MOVES US. ENERGY TODAY ENERGY REVOLUTION Lowered Consumer Costs Energy is the foundation upon which and cleaner-burning fuel to heat our modern society rests. Today, our their homes and cook their meals. nation is the world’s leading producer The International Energy Agency of oil and natural gas. estimates that more than 1.2 billion people, or 14 percent of the world’s The 21st century energy revolution population, lack access to electricity, – brought about by advances in the and twice that many, 2.6 billion, live decades-old technology of hydraulic without clean cooking facilities.5 fracturing and innovations in horizontal 1.2 BILLION drilling – has positively touched In fact, according to a 2013 study in PEOPLE IN DEVELOPING NATIONS the lives of all Americans. Whether The Lancet, roughly 3.5 million people, through increased economic opportunity, mostly women and children, die every Without Access to Electricity enhanced national security or the year from respiratory illness as a result abundance of affordable North American of indoor air pollution created by wood oil and natural gas, this revolution is the and other biomass stoves.6 American driving factor in a cleaner environment global energy leadership could help Electricity Access in 2014 - Regional Aggregates source: International Energy Agency, “World Energy Outlook 2016” and lower energy costs for the average significantly increase the number American consumer. of families with access to the clean, affordable energy they need to live For example, according to a 2016 estimate healthier and more productive lives. AFRICA INDIA from AAA, America’s drivers, on average, 244 MILLION saved more than $550 on gasoline in None of this progress or the potential 634 MILLION Without Electricity 3 Without Electricity 2015 due to increased production from of America’s enormous energy Electrification rate: Electrification rate: 81% hydraulic fracturing and horizontal drilling. resources are guaranteed to continue. 45% Urban electrification And an analysis by EIA shows that since If lawmakers pursue energy policies that Urban electrification rate: 96% rate: 71% 2008, roughly the start of the energy constrain domestic oil and natural gas Rural electrification Rural electrification rate: 74% renaissance, average annual energy costs production, particularly from hydraulic rate: 28% per household in the United States have fracturing and horizontal drilling, they dropped by more than 14 percent.4 could consign future generations of Americans and millions of people It is important to remember around the world to a less prosperous that American energy policy has and productive future, because those consequences beyond our borders. energy production technologies account American energy leadership could help for the bulk of our nation’s increased improve the lives of millions
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