Released January 10, 2018 | SUGAR LAND
en
Written by John Egan for Industrial Info Resources (Sugar Land, Texas)--Is Oil & Gas a high-tech industry? Jack Gerard, president and chief executive at the American Petroleum Institute (API) (Washington, D.C.), says yes. In his annual "State of American Energy 2018" address in Washington on Tuesday, Gerard highlighted the industry's increased reliance on advanced technology to safely and cost-effectively discover, extract, process and transport oil and natural gas, for the benefit of consumers and businesses.
"We are a high-tech industry, analyzing a tremendous amount of data in real time to head off impacts and incidents," the API chief told attendees at a lunchtime address. "We are identifying trends and constantly improving our accuracy and efficiency. We develop and deploy the most advanced systems, infrared devices, fiber optics and drones to ensure safety around the clock. And we've deployed technological advances throughout the supply chain, from 3D mapping and petrophysics to machine learning and sensor technology. We are powering positive change in reliability, safety and environmental performance every day through technology and innovation."
Gerard repeatedly touted the industry's innovation and entrepreneurial activity as being critical to keeping the American energy revolution moving forward. "Here in 2018, we continue to push the limits as high-tech innovators and power past the world's greatest challenges. This innovation-centered mindset pushes boundaries that lead to breakthroughs. It is essential to the cleaner, safer and more secure energy future we all seek."
"Consider what was previously thought impossible," he continued. "We've taken the nation from energy scarcity to energy abundance. From making products abroad to a rebirth of U.S. manufacturing. From energy as a major pocketbook issue to lower gasoline, diesel, electricity and home-heating costs. And today we are increasing energy development as we're contributing to lower greenhouse gas emissions--a reality many believed was implausible, if not impossible."
Advanced technologies and improved operating efficiencies are allowing the industry produce higher levels of oil and natural gas with far fewer rigs than was the case five years ago. They helped the industry weather the storm of perennial low gas prices and a dramatic fall in oil prices that started in mid-2014. Producers today are able to more profitably extract hydrocarbons at lower price points because of advanced technologies and efficiency gains.
So yes, the Oil & Gas industry has become a high-tech industry. It won't be confused with Google, Apple or Amazon any time soon, but it meets critical consumer needs using advanced technology.
A video preceding Gerard's address emphasized the cutting-edge aspect of work in the industry. API is set to release a study predicting Millennials will account for nearly 41% of the U.S. workforce by 2025, a 20% increase over their current representation. "By harnessing this generation's unshakable confidence in a better future and use of technology, the industry is positioned well to address tomorrow's greatest challenges," he predicted.
Gerard also listed the "unforeseen manufacturing revival, lower consumer costs, and greatly reduced carbon and other air emissions" brought about through expanded oil and gas development. "We are in the midst of transformational progress. And it is happening quicker, cleaner and safer than ever before because of natural gas and oil."
"Today, U.S. economy-wide [carbon dioxide] emissions are at near 25-year lows. For the past 10 years, energy-related carbon dioxide emissions have fallen in 43 states. Health and environmental improvements have been dramatic, with the nation's key air pollutants declining 73% since 1970."
The API head noted that "America's manufacturing resurgence is also fueled by abundant, affordable and reliable natural gas and oil. U.S. manufacturers of steel, chemicals, refined fuels, plastics, fertilizers and other products enjoy an advantage over foreign competitors." Last year, he noted, manufacturers added more than 170,000 new jobs.
The current pro-business political climate in Washington suggests this revolution is nowhere near an end. Gerard praised the Trump administration's proposal, unveiled last week, to open nearly all of the Outer Continental Shelf to leasing and potential drilling. This is a 180-degree turn from policies enacted by the Obama administration, which placed nearly all of the OCS off-limits to leasing and drilling. For more on Gerard's address last year, see January 6, 2017, article - API Chief Touts Geology, Not Ideology, as the Foundation of Smart Energy Policy.
Gerard also supported plans to strengthen, expand and repair infrastructure in the U.S. He urged lawmakers and the White House not to think of infrastructure solely in terms of highways, bridges and roads. "In addition to that traditional (definition of) infrastructure, consider the potential for energy infrastructure investment. According to a recent study, private investment in U.S. energy infrastructure is a more than $1 trillion proposition and could support more than 1 million jobs per year through 2035. By expanding our focus beyond traditional infrastructure and considering the great opportunity of energy infrastructure investments, we could potentially double the economic benefits of infrastructure in this country."
He hinted that most of this energy infrastructure would be funded by private companies, in contrast to the government paying for some portion of traditional infrastructure like bridges, highways and roads through public-private partnerships, which is the rebuttable presumption in Washington these days.
What could happen if the oil and gas revolution doesn't continue? Higher prices and supply disruptions, at a minimum, in Gerard's view. He sketched contrasting portraits of energy abundance and energy scarcity, pointing to New England and Ohio, both of which endured a brutal cold snap last week. "New Englanders have been subject to some of the highest electricity costs in the nation--well above the national average--because of resistance to (energy) infrastructure development," he said. "This is despite the fact that they are living adjacent to abundant, affordable, reliable and clean natural gas in the Marcellus Shale region. In contrast, in Ohio, electricity prices held steady or even declined even during peak demand."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
"We are a high-tech industry, analyzing a tremendous amount of data in real time to head off impacts and incidents," the API chief told attendees at a lunchtime address. "We are identifying trends and constantly improving our accuracy and efficiency. We develop and deploy the most advanced systems, infrared devices, fiber optics and drones to ensure safety around the clock. And we've deployed technological advances throughout the supply chain, from 3D mapping and petrophysics to machine learning and sensor technology. We are powering positive change in reliability, safety and environmental performance every day through technology and innovation."
Gerard repeatedly touted the industry's innovation and entrepreneurial activity as being critical to keeping the American energy revolution moving forward. "Here in 2018, we continue to push the limits as high-tech innovators and power past the world's greatest challenges. This innovation-centered mindset pushes boundaries that lead to breakthroughs. It is essential to the cleaner, safer and more secure energy future we all seek."
"Consider what was previously thought impossible," he continued. "We've taken the nation from energy scarcity to energy abundance. From making products abroad to a rebirth of U.S. manufacturing. From energy as a major pocketbook issue to lower gasoline, diesel, electricity and home-heating costs. And today we are increasing energy development as we're contributing to lower greenhouse gas emissions--a reality many believed was implausible, if not impossible."
Advanced technologies and improved operating efficiencies are allowing the industry produce higher levels of oil and natural gas with far fewer rigs than was the case five years ago. They helped the industry weather the storm of perennial low gas prices and a dramatic fall in oil prices that started in mid-2014. Producers today are able to more profitably extract hydrocarbons at lower price points because of advanced technologies and efficiency gains.
So yes, the Oil & Gas industry has become a high-tech industry. It won't be confused with Google, Apple or Amazon any time soon, but it meets critical consumer needs using advanced technology.
A video preceding Gerard's address emphasized the cutting-edge aspect of work in the industry. API is set to release a study predicting Millennials will account for nearly 41% of the U.S. workforce by 2025, a 20% increase over their current representation. "By harnessing this generation's unshakable confidence in a better future and use of technology, the industry is positioned well to address tomorrow's greatest challenges," he predicted.
Gerard also listed the "unforeseen manufacturing revival, lower consumer costs, and greatly reduced carbon and other air emissions" brought about through expanded oil and gas development. "We are in the midst of transformational progress. And it is happening quicker, cleaner and safer than ever before because of natural gas and oil."
"Today, U.S. economy-wide [carbon dioxide] emissions are at near 25-year lows. For the past 10 years, energy-related carbon dioxide emissions have fallen in 43 states. Health and environmental improvements have been dramatic, with the nation's key air pollutants declining 73% since 1970."
The API head noted that "America's manufacturing resurgence is also fueled by abundant, affordable and reliable natural gas and oil. U.S. manufacturers of steel, chemicals, refined fuels, plastics, fertilizers and other products enjoy an advantage over foreign competitors." Last year, he noted, manufacturers added more than 170,000 new jobs.
The current pro-business political climate in Washington suggests this revolution is nowhere near an end. Gerard praised the Trump administration's proposal, unveiled last week, to open nearly all of the Outer Continental Shelf to leasing and potential drilling. This is a 180-degree turn from policies enacted by the Obama administration, which placed nearly all of the OCS off-limits to leasing and drilling. For more on Gerard's address last year, see January 6, 2017, article - API Chief Touts Geology, Not Ideology, as the Foundation of Smart Energy Policy.
Gerard also supported plans to strengthen, expand and repair infrastructure in the U.S. He urged lawmakers and the White House not to think of infrastructure solely in terms of highways, bridges and roads. "In addition to that traditional (definition of) infrastructure, consider the potential for energy infrastructure investment. According to a recent study, private investment in U.S. energy infrastructure is a more than $1 trillion proposition and could support more than 1 million jobs per year through 2035. By expanding our focus beyond traditional infrastructure and considering the great opportunity of energy infrastructure investments, we could potentially double the economic benefits of infrastructure in this country."
He hinted that most of this energy infrastructure would be funded by private companies, in contrast to the government paying for some portion of traditional infrastructure like bridges, highways and roads through public-private partnerships, which is the rebuttable presumption in Washington these days.
What could happen if the oil and gas revolution doesn't continue? Higher prices and supply disruptions, at a minimum, in Gerard's view. He sketched contrasting portraits of energy abundance and energy scarcity, pointing to New England and Ohio, both of which endured a brutal cold snap last week. "New Englanders have been subject to some of the highest electricity costs in the nation--well above the national average--because of resistance to (energy) infrastructure development," he said. "This is despite the fact that they are living adjacent to abundant, affordable, reliable and clean natural gas in the Marcellus Shale region. In contrast, in Ohio, electricity prices held steady or even declined even during peak demand."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
