EPA Seeks Comments on Drilling Air Quality

- EPA Seeks Comments on Drilling Air Quality

Tuesday, August 30, 2011
The News Herald, Panama City, Fla.
by Ali Helgoth

The Environmental Protection Agency (EPA) is accepting public comment on an air quality permit sought by a company that plans to conduct exploratory oil drilling 200 miles off the coast of Panama Cit Beach.

http://www.epa.gov/region4/air/permits/OCSPermits/ShellOCS.html

Shell Offshore applied for an Outer Continental Shelf air permit for mobilization and operation of deepwater drilling vessels and support vessels in two area lease blocks in the Gulf of Mexico, DeSoto Canyon and Lloyd Ridge.

Drilling would last about 150 days per year for five to 10 years, according to a preliminary determination issued by the EPA, which has proposed approval of the permit. Shell does not have plans to establish permanent production platforms, and if the exploration project leads to resource discoveries, additional permits would be required, according to information from the EPA.

The project is southwest of Bay County, about 160 miles southeast of the mouth of the Mississippi River.

A representative from Shell, which initially filed the permit in April 2010, could not be reached Monday for comment.

Public comment is being accepted through Sept. 19 and is limited to air quality issues. Other concerns, like those with drilling safety, the leasing process or discharge, should be directed to the Bureau of Ocean Energy Management, Regulation and Enforcement, which is the lead permitting agency for the project.

Air pollution emissions generated from the project "are primarily released from the combustion of diesel fuel in the drillships' main engines, as well as in engines that supply power for operating drilling equipment and support vessels," according to the EPA's preliminary determination.

The document states "since the project is located well away from land, the project's emissions impacts will be dispersed over a wide area with no elevated concentration levels affecting any onshore populated area."

The project isn't expected to result in job growth. According to the EPA, "the potential growth of industrial, commercial and residential sources as a result of the proposed DeSoto Canyon and Lloyd Ridge drilling exploration activities in the area just west of the proposed drilling activities is well developed. It is expected that the current infrastructure is more than adequate to support the proposed drilling activities, and no additional growth is expected."

(c)2011 The News Herald (Panama City, Fla.). Distributed by MCT Information Services.

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Commodity Corner: Oil Down on Bernanke Comments

- Commodity Corner: Oil Down on Bernanke Comments

Thursday, July 14, 2011
Rigzone Staff
by Saaniya Bangee

Oil futures plummeted Thursday after Federal Reserve Chairman Ben Bernanke stifled expectations of the Federal Reserve providing additional monetary aid. During the Fed's semiannual policy report, Bernanke explained that as of now, the central bank would not be releasing further funds.

The news sent the dollar soaring. A stronger greenback pressures oil prices making the dollar-denominated commodities more expensive for foreign buyers.

Easing the drop in prices, the U.S. Labor Department reported that the number of claims for unemployment benefits decreased by 22,000—the lowest in three months. In spite the decrease, application levels remain above 400,000, representing a weak job market.

In early trading, crude futures rose as high as $98.88 a barrel, before settling at $95.69 on the New York Mercantile Exchange (NYMEX).

Front-month Brent ended the August contract at $118.32 a barrel on the ICE Futures exchange. The intraday range for Brent crude was $117.73 to $119.40 a barrel.

Meanwhile, natural gas for August delivery lost 2.9 cents to end Thursday's session at $4.36 per thousand cubic feet. According to the U.S. Energy Information Administration, natural gas inventory grew by 84 billion cubic feet. Prices peaked at $4.41 and bottomed out at $4.25 Thursday.

Reformulated August gasoline blendstock also traded lower, settling at $3.12 a gallon. Gasoline futures traded between $3.094 and $3.159 Thursday.

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Toreador Comments on France's Fracking-Ban

- Toreador Comments on France's Fracking-Ban

Wednesday, July 06, 2011
Toreador Resources Corp.

Toreador commented on the recent French law, voted on June 30, 2011, banning the use of hydraulic fracturing for oil and gas extraction.

Craig McKenzie, President and CEO of Toreador, said, "As a longstanding operator in France, we have demonstrated our expertise and ability to conduct our Paris Basin operations in full respect of the environment and local residents where we operate. Notwithstanding the new law, we believe the oil resource potential of the Paris Basin can create jobs, provide local economic development, generate substantial revenues for the State and benefit all stakeholders. We reaffirm our commitment to define and develop this basin to reach its potential for all stakeholders, in compliance with French legislation and through cooperation with French authorities."

Added McKenzie, "It is important to note that our plan to evaluate our exploration licenses does not call for hydraulic fracturing. We will not conduct hydraulic fracturing operations within any of our permit areas. We will make full disclosures and representations to the French regulatory authorities as may be required."

Concluded McKenzie, "As we recently outlined at our annual shareholder's meeting, the company has been able to significantly advance its assessment of traditional exploration and development opportunities across its entire Paris Basin portfolio. It is our goal to bring these plans forward and to take the operational and strategic steps to create long-term value for our shareholders."

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Commodity Corner: Crude Up on Bernanke Comments

Commodity Corner: Crude Up on Bernanke Comments

Wednesday, April 27, 2011
Rigzone Staff
by Saaniya Bangee

Crude oil climbed higher Wednesday after the U.S. Federal Reserve indicated there would be no change in its monetary policy.

Light, sweet crude settled at $112.76 a barrel, up 55 cents. After a two-day meeting, Federal Reserve chairman Ben Bernanke said Wednesday that the spike in inflation will be temporary, due to higher oil and gas prices, and that the economy will continue to recover at a moderate pace.

The Fed also said it will keep interest rates near zero. Lower interest rates have helped keep the dollar weak contributing to higher oil prices. Oil, which is priced in dollars, is more attractive to foreign buyers when the dollar is weak.

Crude futures for June delivery fluctuated between $110.71 and $113.40 Wednesday.

Meanwhile, crude futures were also pressured by strong gasoline prices. Front-month gasoline gained 6.22 cents, settling at $3.419 a gallon. Gasoline futures traded between $3.35 and $3.44 a gallon on Wednesday. RBOB gasoline futures ended the day's trading session at their highest in 33 months. The Energy Information Administration (EIA) reported that gasoline stockpiles fell last week for the 10th week in a row, the lowest level since Sept. 2009.

After trading between $4.37 and $4.43, May natural gas lost a penny to settle at $4.377 a gallon Wednesday.