Energy

Fifty years ago, a secret deal among Arab governments triggered one of the most traumatic economic crises to afflict the United States and other big oil importers. Saudi King Faisal and other Arab leaders launched an oil embargo on Oct. 17, 1973, as payback for Washington siding with Israel in its war with neighboring Egypt and Syria. The oil market hostilities arose from a pact between Faisal and the leaders of Egypt and Syria, whose armies planned surprise drives to retake their territory under Israeli occupation. If the United States intervened to assist Israel, Faisal and other Arab producers agreed to retaliate with the “oil weapon.” When Washington airlifted in U.S. weapons that helped Israel thwart Arab gains, Faisal and OPEC’s Arab members retaliated. They increased oil prices, banned oil shipments to the United States and cut production by 5% per month. The ensuing economic and political carnage is legendary. The embargo catalyzed a long period of...

The United States is producing more oil and natural gas today than ever before, and far more than any other country. So, what roles did the Trump-Pence and Biden-Harris administrations play in this surge? The answer might surprise you, given the way each has talked publicly about fossil fuels: former President Donald Trump embracing them, and President Joe Biden and Vice President Kamala Harris focusing on reducing fossil fuel use to fight climate change. Under each of the three most recent presidencies, Republican and Democratic alike, U.S. oil and gas production was higher at the end of the administration’s term than at the beginning. That production has both pros and cons. Together, oil and gas account for nearly three-quarters of U.S. energy consumption. Producing oil and gas in the U.S. provides energy security, and high production generally keeps prices down. Burning oil and gas, however, releases carbon dioxide into the air, contributing to climate change. And nat...

On a recent visit to Rangely, a small town in northwest Colorado, my colleagues and I met with the administrators of a highly regarded community college to discuss the town’s economy. Leaving the scenic campus, we saw families driving into the mountains in off-road vehicles, a favorite activity for this outdoors-loving community. With a median household income above US$70,000 and a low cost of living, Rangely does not have the signs of a town in economic distress. But an existential risk looms over Rangely. The town is here because of an oil boom during World War II. Today, the oil and gas industry contributes over half of the county’s economic output. Rangely is not unique in the United States, which is the world’s largest producer of oil and natural gas. There are towns across the country that depend on the oil and gas industry for well-paying jobs and public revenues that fund their schools and other critical services. A heavy dependence on any single indus...

The U.S. is nearing the end of one of its hottest summers on record. Across the nation, heat waves have driven peak electricity demand on some days to levels far exceeding seasonal averages. Grid operators rely on so-called “peaker” plants to ensure they will have enough supply to meet these demand surges. Peaker units can start up quickly and at relatively low cost, but they typically burn more fuel per unit of electricity produced than other types of fossil fuel units. Because they are less efficient than other plants, peakers typically run only during high-demand periods. Historically, peakers have run for less than 10% of the year, often for just a few hours at a stretch. Nonetheless, their higher emissions per unit of electricity produced raise environmental and health concerns. As of 2021, there were 999 peaker plants across the U.S., in all 50 states. About 70% of these plants burned natural gas, and the rest were powered by oil and coal. To reduce air p...

Recent courtroom wins for advocates of a more competitive process for approving interstate electric transmission lines could help clear the way for greater access to clean energy for Americans in the long run. On Monday, the Supreme Court declined to hear Texas’ defense of its “right of first refusal,” or ROFR, law that gave preference for certain utilities to build new power lines across state borders. The law was struck down by a lower bench last year. The justices’ order, which keeps Texas’ law off the books, could serve as a check against adoption of similarly restrictive laws in other states, said Ari Peskoe, director of the Electricity Law Initiative at Harvard Law School. “If utilities had pushed that model across the country, that really would have solidified utility dominance over our transmission systems,” Peskoe said. “The Supreme Court’s decision … should at least prevent tha...