Territorial disputes hamper exploration and production of resources in the East China Sea

The East China Sea may have abundant hydrocarbon resources, especially natural gas, although the region is underexplored. China and Japan, the two largest energy consumers in Asia, are both interested in using natural gas from the East China Sea to meet rising domestic demand. However, unresolved territorial disputes make exploration and development of these resources difficult.

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Combined heat and power technology fills an important energy niche

Combined heat and power (CHP), also called cogeneration, is an efficient approach to generating electric power and useful thermal energy for heating or cooling from a single fuel source. Instead of purchasing electricity from the grid and producing heat in an on-site furnace or boiler, a CHP generator provides both energy services in one energy-efficient step.

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Key New England natural gas pipeline reflects seasonal flow changes

The Algonquin Gas Transmission (AGT) Company, a main source of natural gas supply into New England, has traditionally operated near capacity only during the high-demand winter season. But so far in 2012, it has operated at much higher levels year-round as rising natural gas demand from the power sector, coupled with reduced liquefied natural gas (LNG) imports, have increased flows on pipelines into the region.

From June-August 2012, AGT averaged a winter-like 83% load factor (the amount of pipeline capacity that is being used). This is up from a 62% load factor for June-August 2011 and well above the average load factor of only 32% from June-August in the years 2005-2010.

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Regulators approve first commercial hydrokinetic projects in the United States

New hydrokinetic energy technologies that generate electricity by harnessing the energy from ocean waves, tides, and river currents are advancing toward commercial development in the United States. They are not expected to add major power supplies anytime soon, but federal regulators this year approved licenses for two hydrokinetic energy projects to produce electricity from wave power buoys anchored off the Oregon coast and from underwater turbines driven by the current in New York City's East River.

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U.S. marketed natural gas production levels off in the first half of 2012

U.S. marketed natural gas production has flattened since late 2011, mainly in response to lower natural gas prices. Nevertheless, volumes remain at historically high levels. From January through July 2012, marketed natural gas production set a record high for the first seven months of any year, averaging 68.9 billion cubic feet per day (Bcf/d), up nearly 4 Bcf/d, or 5.9%, from the same period a year earlier.

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Increases in oil prices affect broader measures of inflation

While a barrel of light sweet crude oil may never make it onto the shopping list of the typical U.S. consumer, the effects of world oil price hikes on consumer prices have been highly correlated for some time. Over the past ten years, the Chained Consumer Price Index (C-CPI-U)—a measure of change in the cost of living—for energy (the blue line in the top chart) has approximately tracked the movements of the international Brent crude oil price (shown in the lower chart). Rising energy and food prices have led the "all items" cost of living index to modestly exceed "core" inflation, which excludes volatile food and energy costs.

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Iraqi crude oil production approaching highest level in decades

Estimated Iraqi oil production surpassed 3 million barrels per day (bbl/d) in July 2012, the highest level since the end of the Gulf War in 1990. Increased investment in Iraq's petroleum industry and export infrastructure underpin these production gains. However, many factors still constrain the Iraqi oil industry from reaching its full production potential.

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Attributes of crude oil at U.S. refineries vary by region

Crude oil has unique qualities and commands different prices depending on these qualities. In addition to quality considerations, location and local refining capability influence a crude's value. Two key characteristics of crude oil are density and sulfur content. Density ranges from light to heavy, while sulfur content is characterized as sweet or sour. The purchase costs of various crude oils depend mainly on density and sulfur content, and other factors such as location and transportation costs.

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Industries consumed more than 30% of U.S. energy in 2011

The U.S. industrial sector was responsible for more than 30% of total U.S. energy consumption in 2011. While the term "industrial sector" may sound remote to the general public, its impact on daily life is highlighted by the wide range of industrial activities represented by the products and equipment found at a local supermarket. The chart above shows energy consumption for individual industries in 2011: non-energy-intensive manufacturing, energy-intensive manufacturing, and non-manufacturing.

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EIA improves its monthly propane imports series

The U.S. Energy Information Administration (EIA) recently updated its Petroleum Supply Monthly data series for propane as part of a continual effort to improve the quality of its information. As a result, EIA's May 2012 Petroleum Supply Monthly data showed a sharp apparent increase (71 thousand barrels per day) in U.S. imports of propane compared to April 2012. More accurate reporting rather than market conditions explains this increase in reported imports. The United States remains a net exporter of propane.

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