Kallanish Energy l October 9, 2020
A new report by the U.S. Department of Energy cites the need for energy innovation while recognizing the benefits of oil and natural gas in the daily lives of Americans, Kallanish Energy reports.
The report, “U.S. Oil and Natural Gas: Providing Energy Security and Supporting Our Quality of Life,” acknowledges the critical role of advanced energy technology innovation in maintaining U.S. economic success and providing a sustainable domestic energy supply for the future.
DOE will work with the industry, academia, state agencies, the private sector, and non-government organizations “to drive innovation forward, to underpin U.S. economic growth and energy security,” said Assistant Secretary for Fossil Fuels Steve Winberg.
Such innovations are expanding resource development in the Bakken Shale, the Permian Basin, and the Eagle Ford Shale, while improving O&G safety and mitigating environmental problems, the report said.
“Oil and natural gas provide more than two-thirds of the energy Americans consume daily,” said DOE Deputy Secretary Mark Menezes in releasing the 37-page report earlier this week in New Mexico.
“In addition to meeting our energy needs, these fossil fuel resources are integral to our standard of living. This report delves into the importance of these resources, the five key technologies that have supported the industry’s advancement, the opportunities for future domestic energy growth, and more,” he said in a statement.
Over the next two decades, oil and gas are projected to account for 68% of energy consumption in the United States and will play a key role in the energy transition to a low carbon future, the report said.
Natural gas is increasingly powering power plants to produce electricity, but oil and natural gas are revitalizing the U.S. petrochemical industry, growing the liquefied natural gas industry, and boosting high-tech materials, it said.
Renewables have increased to 11% and coal has declined to 13%, it said.
But the report contends that natural gas is needed to support renewables when the wind is now blowing or when the sun is not shining.
Oil and natural gas will also play a key role in getting the U.S. economy to rebound in the wake of the coronavirus pandemic, said Energy in Depth, a pro-industry group.