Phil Zaccaria is a Petroleum Engineer and entrepreneur in San Antonio, Texas who is a regular contributor to energy news publications. In the article below, Phil Zaccaria discusses some of the pertinent happenings related to energy and domestic production of oil and gas.
There seems to be a light at the end of the tunnel for more oil and gas development on American soil.
Phil Zaccaria reports domestic oil and gas production has been booming until the spread of COVID 19 slowed demand and then the subsequent COVID based employment subsidies kept oil field workers on the sidelines. Phil Zaccaria explains that it is interesting that most people do not understand that the oil demand is more than just gasoline and diesel for cars and trucks. Only about 40% of oil production goes to the refining into fuel the rest is used in making over 6000 everyday products, such as plastics, rubber, dishwasher liquid, children’s toys, blow dryers and material for road building.
The Biden administration makes a good point that there are over 9000 drilling permits that are not being used on Federal Lands but fails to discuss other reasons such as labor shortages for drilling rigs, work-over rigs and stimulation companies.
Phil Zaccaria explains the Biden administration’s announcement of the latest oil and gas federal leasing program news reverses an earlier pledge to stop such federal drilling auctions.
Is American Energy Independent?
The answer is yes, according to Axios.
According to a recent report, the United States produced more petroleum in 2020 than it consumed, and, according to the Energy Information Administration, those numbers were balanced in 2021.
Phil Zaccaria says that’s important in the wake of surging oil prices in 2022 and a maintain focus on American relationships with Canada and Mexico, our close neighbors with oil-rich areas. Axios says that while in the past high oil prices made America “poorer” as it relied heavily on imported energy, the previous two decades of shale gas development make the impact of high oil prices much more subtle.
Phil Zaccaria also notes that while in 2021, America production was fairly flat the consumption was down, overall 2021 production was in balance. We will always have imports due to the fact that some of our refineries were designed to take crude from the Middle East and heavy crude from Canada and Venezuela.
America’s future?
Phil Zaccaria explains that in his view an all-inclusive plan needs to be supported. As we see, today, being energy independent is a nation security issue. American’s need to fully support this concept and reach out to our elected officials. We need electric power to continue to come from natural gas, wind, solar, nuclear, hydro and coal. Yes, Coal. We have the ability to scrub coal fired power plant emissions down to levels that are far less that what other countries in the world are emitting. We can all do our part as far as reducing carbon emissions but not at the expense of increasing, disproportionately the cost of living for the lower income people living in America.
