Oil and natural gas global energy institute electricity ground explained

Technological advances have led to tremendous increases in oil and natural gas production, creating jobs and spurring economic development. In a short time, the narrative of U.S. energy production has changed from one of “energy scarcity” to one of “energy abundance.”

Despite this success, oil and gas production faces barriers that are holding back its full potential, costing America jobs and government revenue. While oil and gas production on state and private lands has increased dramatically, production on federal lands has actually fallen. Furthermore, the vast majority of federal offshore lands are closed to production, and the industry operates under the constant threat of punitive taxes and ill-conceived, heavy-handed federal regulations. Unleashing an Energy Revolution

America is in the midst of a true energy revolution. After decades of the national dialogue being dominated by energy scarcity, we are now facing an era of energy abundance. However, this is far from a foregone conclusion. The recent expansion of oil and gas production is a result of technological innovation and industry persistence. If we can develop smart policies that complement the private sector, we are on the verge of an energy revolution that has the potential to launch a manufacturing revival, effectively increase household spending power, and repower America’s economy.

American crude oil production is on the rise. The Energy Information Administration (EIA) projects that America’s crude production will be over 7.4 million barrels per day by the end of 2013—a nearly 50% increase since 2008. However, industry has been restricted from exploring much less producing energy on vast amounts of federal land. In fact, while production of oil and gas on private and state land has risen dramatically in the last few years, production on federal lands actually declined. Production has not only declined on federal lands, but industry is also locked out of most offshore federal lands – some 86% of the outer continental shelf is off-limits for production and exploration.

The natural gas story is even more astonishing. Natural gas from shale today represents about one-third of all U.S. production and is forecast to supply up to 60% of all U.S. natural gas production by 2030. In fact, EIA now expects the U.S. to become a net exporter of natural gas by 2020 (if not sooner).

Shale gas presents a significant opportunity to lower our nation’s energy security risk and increase the competitiveness of our manufacturing sector. The resulting reduction in costs for power generation and feedstocks has not only made U.S. manufacturing more competitive, it has also spurred new investments in chemical and steel manufacturing.

Unconventional oil and gas alone are expected to generate hundreds of billions of dollars in local, state and federal revenues, and create or support millions of American jobs. Continuing to optimize these valuable resources to help grow the U.S. economy will depend on smart energy policies that do not limit or restrict development.