Crude Oil Price by oil-price.net

Oil and Gas Energy News Update

Showing posts with label Obama. Show all posts
Showing posts with label Obama. Show all posts

Friday, September 9, 2011

Commodity Corner: Oil Falls as Euro Weakens

- Commodity Corner: Oil Falls as Euro Weakens

Friday, September 09, 2011
Rigzone Staff
by Matthew V. Veazey

Light sweet crude oil for October delivery fell below $86.00 a barrel Friday as the U.S. dollar strengthened against the euro.

The WTI bottomed out at $85.64 a barrel before settling at $87.24, still reflecting a day-on-day loss. It peaked at $89.50. The Brent contract price also ended the day lower, settling at $112.77 after trading within a range from $111.09 to $113.89.

A weaker greenback is bullish for crude oil—priced in dollars—because it becomes a better buy for investors holding other currencies. In the case of the euro Friday, the currency weakened amid mounting fears that Greece will default on its debt. The departure of a high-level German official from the European Central Bank Friday contributed to speculation that euro-zone countries will fail to resolve lingering policy disputes that have hindered efforts to resolve debt crises throughout the region.

Equities fell as the euro-zone uncertainty grew, chilling expectations about global demand for oil. The Dow Jones Industrial Average and S&P 500 each lost approximately 2.7 percent while the Nasdaq lost a relatively modest 2.4 percent. President Obama's latest plan to spur job creation in the U.S., presented Thursday night to a joint session of Congress, failed to brighten the demand outlook.

October natural gas also ended the day lower, falling to $3.915 per thousand cubic feet. Gas futures fluctuated from $3.885 to $3.99 during Friday's floor trading.

Front-month gasoline settled at $2.77 a gallon, slightly higher than the $2.76 intraday low. October gasoline peaked at $2.89 Friday.

Oil & Gas Post

Promote Your Page Too
LINK

API: Obama's Jobs Plan a 'Missed Opportunity'

- API: Obama's Jobs Plan a 'Missed Opportunity'

Friday, September 09, 2011
American Petroleum Institute

API President and CEO Jack Gerard called the president's jobs plan a 'missed opportunity' and said the oil and natural gas industry could create more than a million new jobs for Americans and more revenue for our government with a few sensible changes in national energy policy.

"The president missed an opportunity to pick the low hanging fruit of job creation," said Gerard. "Allowing the responsible development of more of America's vast domestic oil and natural gas resources could generate more than one million new jobs in just seven years, with thousands of shovel-ready jobs that could be created almost immediately."

Gerard cited a study released this week by Wood Mackenzie (PDF file), sponsored by API, that shows the oil and natural gas industry can create 1.4 million additional jobs and more than $800 billion in additional government revenue by 2030.

"Raising taxes on an industry that already contributes more than $86 million every day to the federal government takes us in the wrong direction," Gerard said. "It could put American jobs at risk, decrease oil and natural gas production, harm millions of retirees who rely on income from energy companies, and actually reduce revenue to the government over time."

The oil and natural gas industry actually created jobs in August, a month when there were zero net jobs created in the overall economy, according to the Bureau of Labor Statistics.

Oil & Gas Post

Promote Your Page Too
LINK

Tuesday, September 6, 2011

Commodity Corner: Oil Edges Lower on Econ Woes

- Commodity Corner: Oil Edges Lower on Econ Woes

Tuesday, September 06, 2011
Rigzone Staff
by Saaniya Bangee

Light, sweet oil edged lower Tuesday on lingering concerns about the global economy.

Oil futures traded 43 cents lower at $86.02 a barrel on the New York Mercantile Exchange.

Concerns that the European debt crisis might worsen pushed prices and equities lower Tuesday. Traders worry that the economic plague could spread to neighboring countries.

Prices fell as low as $83.20 a barrel in intraday trading as U.S. stock indexes plummeted for a third consecutive session. They peaked at $86.50. Earlier today, the Dow Jones Industrial Average fell 308 points but rebounded after the Greek government indicated swifter economic reforms.

Traders are waiting to take cues from President Obama and the Federal Reserve's speech later this week.

Brent crude, which is used to price many international oil varieties, gained $2.81 Tuesday to settle at $112.89 a barrel. Brent took its cues from production problems in the North Sea and a continued absence of Libyan oil in the market.

Likewise, natural gas for October delivery added 6.6 cents to settle at $3.94 per thousand cubic feet. Prices fluctuated between $3.85 and $3.95 Tuesday.

The U.S. National Hurricane Center reported that a new weather system west-southwest of the Cape Verde Islands had a 90 percent chance of becoming a cyclone in the next 48 hours.

After trading between $2.77 and $2.84, front-month gasoline lost 1.7 cents to settle down at $2.82 a gallon.

Oil & Gas Post

Promote Your Page Too
LINK

Tuesday, August 9, 2011

White House announces oil savings standards for heavy duty trucks, buses

- White House announces oil savings standards for heavy duty trucks, buses



Aug 9, 2011

The Obama administration announced new fuel efficiency and greenhouse gas pollution standards for work trucks, buses, and other heavy duty vehicles that it said will save American businesses who operate and own these commercial vehicles approximately $50B in fuel costs over the life of the program. Under the guidelines, trucks and buses built in 2014 through 2018 will reduce oil consumption by a projected 530M barrels and greenhouse gas pollution by approximately 270M metric tons.

Oil & Gas Post

Promote Your Page Too
LINK

Obama Backs Additional Oil Drilling in Alaska, Salazar Says

- Obama Backs Additional Oil Drilling in Alaska, Salazar Says

Tuesday, August 09, 2011
Knight Ridder/Tribune Business News

Interior Secretary Ken Salazar came to Anchorage on Monday and said the Obama administration supports more oil drilling in Alaska, potentially including offshore Arctic development.

Salazar joined Alaska Sen. Mark Begich and Rhode Island Sen. Jack Reed, both Democrats, for a meeting with Alaska businesspeople and said the president's feeling toward Arctic offshore drilling is "Let's take a look at what's up there and see what it is we can develop." But any Arctic oil development must be done carefully, he said. Salazar said the Arctic lacks needed infrastructure for responding to potential offshore oil spills and cited painful lessons from the Deepwater Horizon spill in the Gulf of Mexico last year.

"Not the mightiest companies with multibillion-dollar pockets were able to do what needed to be done in a timely basis, and the representations of preparation simply turned out not to be true from the oil companies that had a legal obligation to shut down that kind of an oil spill. ...

When you look at the Arctic itself, we recognize that there are different realities - the ocean is a much shallower ocean, conditions are very different than we had in the Gulf of Mexico. (But) there are challenges that are unique to the Arctic," Salazar told Alaska reporters.

Salazar said a step toward a solution is "having an agency within the United States government and Interior, the Bureau of Ocean Energy Management and Regulation, that can in fact do its job." The agency is the successor to the Minerals Management Service, which was discredited after the Gulf spill.

"Secondly, there will be conditions that will be imposed on whatever drilling that does occur in either the Beaufort or the Chukchi on down the road that will incorporate the lessons that have been learned (from the Gulf spill)," he said. "And thirdly, there is also a recognition we have that there is additional work that needs to be done with respect to the understanding of the Arctic, the science and the need for having effective oil spill response," Salazar said.

Begich, said he was encouraged the administration is taking steps toward Arctic development while working out what Coast Guard and other resources would be needed in the area.

Last week the Interior Department's Bureau of Ocean Energy Management, Regulation and Enforcement gave Shell a conditional exploration permit that covers a program that would drill four wells over two years in Camden Bay of the Beaufort Sea, due north of the coastal plain of the Arctic National Wildlife Refuge. But the permit is contingent on many other federal permits and approvals, including oil-spill response plans and marine mammal protection.

Shell is also seeking authorization to drill in the Chukchi Sea.

Shell's Alaska government affairs manager, Cam Toohey, was at Monday's meeting with Salazar and Begich at the Cook Inlet Regional Inc. building in Midtown Anchorage. Toohey said the oil company has seen what it considers an improved attitude among the Interior Department toward providing the certainty needed to invest in projects.

Obama in July signed an executive order to create a new federal working group tasked with having agencies better coordinate Alaska oil and gas permitting and other regulatory oversight. The White House said the working group, which is overseen by Deputy Interior Secretary David Hayes, is designed to simplify oil and gas decision-making in Alaska by bringing together federal agencies to collaborate as they evaluate permits and environmental reviews. Hayes joined Salazar in traveling to Alaska this week.

Salazar said he hoped it would help with instances like the dispute among agencies over a permit for a bridge crossing of the Colville River, which would let companies develop the onshore CD-5 drill site within the National Petroleum Reserve-Alaska.

Salazar on Monday reiterated Obama's support for drilling in the NPR-A.

He said the president wants to increase the domestic energy supply, reduce consumption through measures like greater fuel efficiency, and develop alternative fuels.

Obama does not support drilling in the Arctic National Wildlife Refuge.

Salazar said there are places like NPR-A to focus on drilling "where we don't have to deal with that particular controversy." The Alaskan business people that Salazar, Begich and Reed met with in Anchorage on Monday morning were particularly concerned about what CIRI President Margie Brown described as the "regulatory morass that we find ourselves in." Deputy Interior Secretary Hayes after the meeting went to have a discussion with the governor's office, which has loudly and repeatedly complained about such regulations.

Begich and Salazar also met with the Alaska Federation of Natives on Monday before Salazar, his deputy, Hayes, and Sen. Reed went on to Fairbanks to tour the Bureau of Land Management wildfire-fighting facilities along with Sen. Lisa Murkowski, R-Alaska. Reed is chairman of the Appropriations Subcommittee with jurisdiction over the Interior Department.

The agenda for Salazar's Alaska trip also includes a visit to the Alpine oil field on the North Slope, a flyover of the NPR-A and a meeting with Shell officials in Barrow on offshore exploration. Murkowski, a Republican, will accompany him.

Salazar was in Kodiak over the weekend and will conclude his trip Wednesday with a visit to the Eielson Visitors Center in Denali National Park and Preserve.

(c) 2011, Anchorage Daily News (Anchorage, Alaska). Distributed by Mclatchy-Tribune News Service.

Oil & Gas Post

Promote Your Page Too
LINK

Friday, July 29, 2011

President Obama Announces 54.5 MPG Fuel Efficiency Standard

- President Obama Announces 54.5 MPG Fuel Efficiency Standard



Jul 29, 2011

President Obama announced an agreement with thirteen major automakers to track the next phase in the Administration's national vehicle program, increasing fuel economy to 54.5 miles per gallon for cars and light-duty trucks by Model Year 2025.

The President was joined by Ford (F), GM (GM), Chrysler, BMW, Honda (HMC), Hyundai, Jaguar/Land Rover, Kia, Mazda, Mitsubishi, Nissan (NSANY), Toyota (TM) and Volvo, which together account for over 90% of all vehicles sold in the United States, as well as the United Auto Workers, and the State of California.

Building on earlier agreements for Model Years 2012-2016 vehicles, which will raise fuel efficiency to 35.5 mpg, the next round of standards will require performance equivalent to 54.5 mpg or 163 grams/ mile of CO2 for cars and light-duty trucks by Model Year 2025.

Oil & Gas Post

Promote Your Page Too

Monday, July 25, 2011

Commodity Corner: Default Fears Push Oil Lower

- Commodity Corner: Default Fears Push Oil Lower

Monday, July 25, 2011
Rigzone Staff
by Matthew V. Veazey

With investors nervous about whether Congress and the White House can agree on a plan by August 2 to raise the U.S. debt ceiling and possibly avert default, crude oil settled lower Monday.

Light sweet crude oil for September delivery lost 67 cents to end the day at $99.20 a barrel. The September Brent contract price fell 73 cents to settle at $117.94 a barrel. Recent debt ceiling negotiations between congressional leaders and the Obama Administration have proven both fruitless and contentious. Key areas of disagreement have been how high to raise the federal government's current $14.3 trillion borrowing limit and how deeply to cut spending to offset the increase. Subsequent negotiations between Democrat and GOP congressional leaders did yield a bipartisan framework proposal, but the White House has increased the specter of default by opposing this potential deal.

The WTI peaked at $99.87 and bottomed out at $98.52 and the Brent fluctuated from $117.00 to $118.31.

The August natural gas contract price ended the day at $4.39 per thousand cubic feet, a penny lower than Friday's settlement price. Natural gas traded within a range from $4.34 to $4.46 Monday.

Front-month gasoline remained flat Monday, again settling at $3.13 a gallon. The August contract price fluctuated from $3.09 to $3.13 during the first session of the week.

Oil & Gas Post

Promote Your Page Too
LINK

Friday, July 22, 2011

Commodity Corner: Oil Crosses Century Mark

- Commodity Corner: Oil Crosses Century Mark

Friday, July 22, 2011
Rigzone Staff
by Matthew V. Veazey

Light sweet crude oil for September delivery peaked at $100.19 a barrel Friday, buoyed by news of a draft bailout plan for Greece and other debt-laden EU countries as well as optimism that the U.S. will raise its debt ceiling by August 2.

The WTI ultimately settled at $99.87, representing a 74-cent gain from Thursday. The Brent futures contract, meanwhile, gained $1.16 to end the day at $118.67 a barrel.

On Thursday, eurozone leaders emerged from a meeting in Brussels to unveil a preliminary debt restructuring plan for Greece, Portugal, Ireland, and perhaps other EU countries facing crushing sovereign debts—namely, Spain and Italy. Under the new plan, the countries will have access to European Financial Stability Facility loans at lower interest rates and will have more time—15 years or more—to repay them.

Also boosting crude oil Friday was optimism that the Obama Administration and lawmakers in the Democrat-controlled Senate and GOP-controlled House will be able to reach a deal on raising the U.S. debt ceiling from its current $14.3 trillion level. The U.S. Department of the Treasury has warned that the government could default on its debt obligations beginning August 2 if it does not obtain authority to take on more debt above the current borrowing limit. The Senate did vote Friday to table a House-passed "Cut, Cap, Balance" bill. The bill, which President Obama opposes, would require actual spending cuts in the Fiscal 2012 federal budget, implement a statutory spending cap, and advance a Balanced Budget Amendment to the U.S. Constitution.

The WTI bottomed out at $98.43 during Friday's session while Brent futures fluctuated from $117.59 to $118.78.

The eastern half of the U.S. has been under a so-called heat dome of sizzling temperatures for much of the past week, stoking demand for gas-fired electricity to power air conditioners and fans. The dome is expected to "deflate" somewhat this weekend, and the relatively mild forecast help natural gas futures remain largely unchanged Friday. Natural gas for August delivery gained 0.4 cent to end the day at $4.40 per thousand cubic feet Friday.

Also keeping gas futures in check was a U.S. Energy Information Administration report Thursday showing that working natural gas in storage rose to 2.67 trillion cubic feet as of July 15. The latest figures represents a 60-Bcf net build from the previous week, which fell within analysts' expectations. A Platts survey of analysts had projected a build for the period ranging from 58 to 62 Bcf.

Front-month natural gas traded within a range from $4.37 to $4.47 Friday.

Gasoline for August delivery gained three cents to settle at $3.13 a gallon. The futures price fluctuated from $3.10 to $3.14.

Oil & Gas Post

Promote Your Page Too
LINK

Thursday, June 9, 2011

O&G Companies Fear Higher Royalty Payments under Obama Effort

- O&G Companies Fear Higher Royalty Payments under Obama Effort

Thursday, June 09, 2011
Dow Jones Newswires
WASHINGTON (Dow Jones Newswires)
by Tennille Tracy

Energy companies are concerned they could be forced to pay higher oil and gas royalties under a new Obama administration effort to revamp royalty calculations for energy extracted from federal lands and waters.

The Interior Department, which launched the effort last month, insists the proposed changes will simplify how oil and gas is valued and should not increase or decrease the royalty payments themselves.

Oil and gas companies are not so sure. They say changes could create an unfair calculation that leads to higher royalty payments, which would dampen the industry's profits and hurt smaller producers particularly hard.

"It makes us nervous when we hear of the government trying to simplify things," said Kathleen Sgamma, director of government affairs for the Western Energy Alliance, a group representing oil and gas producers in western U.S. states.

This debate comes as the energy industry has battled the Obama administration on other matters, such as a bid to eliminate billions of dollars of tax incentives for oil and gas companies.

The new royalty formula also comes as the Obama administration looks for ways to trim the widening deficit. Generating nearly $9 billion in reported revenue last year, oil and gas royalties represent one of the largest sources of non-tax revenue for the federal government.

The Interior Department is also considering, through a separate effort, an increase to onshore production royalty rates, now at 12.5%. The royalty rate for offshore production is 18.75%.

Government watchdogs have said the Interior Department's royalty program fails to collect the government's fair share of revenue from the industry. Earlier this year, the Government Accountability Office identified the program as being at a "high risk" of fraud, waste, abuse or mismanagement.

When calculating royalty rates, the Interior Department can often rely on the sale price between the buyer and seller to determine the value of the oil or gas. But in many cases--such as when affiliated companies sell to each another--the Interior Department questions whether this sale price reflects the true market value and conducts its own review. This creates a burden for government officials and leads to disputes with the industry.

Hoping to simplify the process, the Interior Department is considering a process where it relies on standardized prices to calculate royalty payments. These could be published prices from trade publications or prices at which the products are traded on exchanges.

But the industry is concerned standardized prices could lead the Interior Department to assign a higher value to oil and gas than what producers receive from a sale. And that would lead to bigger payments to the federal government.

Such a system could hurt smaller producers particularly hard because they often receive less money for their production than large multinational companies, said L. Poe Leggette, partner-in-charge at Fulbright & Jaworski's Denver office.

Interior Department spokesman Patrick Etchart said they welcome the industry's comments. Interior wants a system "that provides fair certainty to us that we get paid the proper amount," he said.

Copyright (c) 2011 Dow Jones & Company, Inc.

Oil & Gas Post

Promote Your Page Too

Monday, May 16, 2011

Obama Orders Expansion of Oil Drilling

- Obama Orders Expansion of Oil Drilling

Monday, May 16, 2011
The Washington Post
by Steven Mufson

Nine months after the end of the nation's worst oil spill, President Obama is ordering the Interior Department to expand drilling in the Gulf of Mexico, hold annual lease sales in Alaska's National Petroleum Reserve and speed up geological research of exploration prospects off the south and mid-Atlantic coasts.

The moves, announced in the president's Saturday radio address, are not so much a reversal as a return to the policy stance Obama adopted in March 2010, shortly before the Deepwater Horizon drilling rig exploded in flames and BP's Macondo well began gushing millions of barrels of oil into the Gulf of Mexico.

In his four-minute address, Obama touched on the hardship caused by $4-a-gallon gasoline, but made no mention of last year's spill, an environmental disaster that temporarily derailed new wells and set off political sparring over drilling permits that Republicans and oil executives say have been needlessly delayed.

Instead, the president said he would increase access to the Alaskan reserve, an area four times the size of New Jersey. He said that he was also ordering Interior to hold a Gulf of Mexico lease sale this year and two in 2012, thus completing the department's five-year plan for the area. And he said that seismic work off the Atlantic coast would map out new areas for future lease sales.

The only indirect reference to the spill was when Obama said that companies needed to "meet higher safety standards when it comes to exploration and drilling."

Obama said he would also extend oil company leases in the Gulf of Mexico and Alaska where work was delayed by the drilling moratorium he imposed last year. The Bureau of Ocean Energy Management, Regulation and Enforcement has issued 14 deep-water drilling permits since the moratorium.

Last year, the gulf oil spill seemed certain to doom efforts to open up new lands or coastlines for drilling, but congressional Republicans and oil industry executives have taken advantage of high gasoline prices to charge that Obama isn't doing enough to increase domestic supply. Just last week, the Republican-controlled House passed three bills that would compel the government to sell leases for exploration in new coastal and onshore areas, while limiting the ability of drilling foes to mount legal challenges on environmental grounds.

The president's actions could help defuse the drilling and oil supply issue, though Obama acknowledged that "there are no quick fixes to the problem" of expensive gasoline, which Washington Post-ABC News polls indicate is a liability for the president.

Obama's address drew praise from Republicans, criticism from Democrats, and more complaints from the American Petroleum Institute.

"I've been strongly critical of this administration's policies on domestic production, but today I want to give credit to the president," said Sen. Lisa Murkowski (R-Alaska).

By contrast, Sen. Robert Menendez (D-N.J.) said that opening the East and West Coasts to drilling would, according to government estimates, only lower gas prices by 3 cents a gallon by 2030.

"That's not about relief now, that's not really even about consequential relief in the future, and it puts at risk significant coastal economies like New Jersey has - its commercial fishermen, recreational fishermen, and tourism industry," he said.

Menendez is an author of a Senate bill that would curtail oil industry tax benefits amounting to $21 billion over 10 years. Obama gave that measure a plug in his address.

"The American people shouldn't be subsidizing oil companies at a time when they're making near-record profits," Obama said. He said Congress should "end these oil company giveaways once and for all."

"This announcement is carefully timed ahead of the oil tax vote in the Senate next week to counter the charge that the administration is against new domestic supply," said Paul Bledsoe, a senior adviser at the Bipartisan Policy Center who worked on energy issues in the Clinton administration. "In the face of consumer complaints about high prices, the White House is determined to occupy the populist position on both oil company tax breaks and oil production at the same time."

The president has also set a goal of reducing oil imports by 30 percent by the next decade.

A senior administration official said the Obama administration was not reacting to the House measures, but that it had been "on track" to complete its Gulf of Mexico drilling plans "regardless of legislation." Another senior official said the administration believed it could move ahead in Alaska in "attractive areas" for drilling while remaining "consistent with environmental values."

Still, the announcement of new lease sales in Alaska's National Petroleum Reserve provoked concern among environmental groups.

The 23-million acre reserve is located west of the big but declining Prudhoe Bay oil field on the North Slope of Alaska. Set aside by President Warren G. Harding as a strategic naval petroleum reserve in 1923, it was renamed and transferred to Interior in 1976.

It was opened up to some limited drilling in 1980 as a result of a provision inserted into an appropriations bill by the late Sen. Ted Stevens (R-Alaska). A later provision diverted half the royalties to the state of Alaska, even though the reserve is federal land. Six lease sales were held between 1999 and 2010.

Environmental groups say that the reserve provides critical habitat for the peregrine falcon, two caribou herds, moose, rough-legged hawks, gray wolves and other wildlife.

On Oct. 1, 30 environmental and conservation groups submitted a letter urging a "balanced development and strong protection of the extraordinary biological resources in the Reserve."

A senior administration official said that some areas, such as Teshekpuk Lake, would not be open to drilling.

Obama also said he would expedite other Alaska permits. That could help Shell Oil, which has poured $2.2 billion into buying leases and $1.5 billion into preparations for drilling in Alaska, while fending off legal challenges by environmental groups.

In a recent interview, Shell president Marvin Odum said, "Certainly my view is that when the government puts leases out there for sale, it's a statement that they're ready to go." But, he added, Shell has been waiting five years for one air permit for drilling in the remote Chukchi Sea.

"To wait five years before drilling is a pretty frustrating process," he said.

Obama administration officials also said that they would scrutinize existing leases, asserting that half of leased areas onshore and 70 percent of those offshore were "inactive," despite oil industry complaints about limited lease sales.

Oil companies have argued that the administration is counting areas where companies are still making preparations to explore.

Obama said he would seek to "create new incentives" that a senior administration official said could include lower royalty rates for early development.

Copyright washingtonpost.com

Oil & Gas Post

Promote Your Page Too

Wednesday, April 13, 2011

Va. Dem Bucks Administration on Offshore Leasing

Va. Dem Bucks Administration on Offshore Leasing

Wednesday, April 13, 2011
Daily Press, Newport News, Va.
by Cory Nealon

There's nothing like a politician not seeking re-election.

Case in point: U.S. Sen. Jim Webb, D-Va.

Since announcing in February he would not seek re-election, Webb has bucked President Barack Obama, a fellow Democrat, on a handful of issues.

First, he criticized Obama's handling of the turmoil in Libya. Next, he backed a bill that would've halted the U.S. Environmental Protection Agency from regulating greenhouse gases, which Obama favors because the Senate didn't pass energy legislation in 2009.

Now he's calling on Obama to open Virginia's coast to oil and natural gas exploration.

"As gas prices rise, in part due to America's dependence on foreign oil, we must pursue robust energy policies that include the expansion of our domestic energy resources in a safe and secure manner, as well as conservation and clean energy measures," Webb said in a statement issued by his office last week.

He also asked Obama to expand the 2.9-million acre tract -- slightly larger than Delaware -- located 50 miles off Virginia's shore that was previously considered for drilling.

The request comes a little more than a year after Obama announced he would open much of the East Coast, including Virginia, to drilling. Obama scrapped the plan, however, after last year's Gulf of Mexico oil spill, which killed 11 and caused untold damage to the gulf's ecosystem.

For those of you keeping tabs at home, the offshore drilling bill that Webb supports comes from Rep. Bob Goodlatte, R-Roanoke -- the same lawmaker trying to curtail the EPA's aggressive Chesapeake Bay Restoration plan.

Who says the House and Senate can't work together?

Global warming

I got a fair amount of feedback -- most of it critical -- about an article last week concerning global warming skeptic Roy W. Spencer.

Spencer spoke at the Environment Virginia Symposium at the request of Gov. Bob McDonnell's administration.

Spencer said that he agrees with most of what the Intergovernmental Panel on Climate Change -- the body of scientists that shared the 2007 Nobel Peace Prize with former Vice President Al Gore -- has to say about global warming.

However, he highlighted gaps in the panel's data and questioned whether mankind is causing the Earth to warm through its use of fossil fuels.

The view is not popular among environmental activists and scientists, both of whom have criticized the media for giving Spencer and similar-minded scientists a platform to expound their views.

What I haven't heard is anyone complaining that Spencer said something false or inaccurate. Instead, the gripes centered on his conservative and evangelical affiliations, which were pointed out in the article.

If you still feel he doesn't deserve a seat at the table, my phone number and email are below. As always, comments are welcomed.

Wednesday, March 30, 2011

Obama to call for more use of natural gas, biofuels

Obama to call for more use of natural gas, biofuels



President Obama will set a goal today of reducing the nation's oil imports by one-third by 2020, according to The Washington Post. The president will call on Congress and Americans to accomplish the goal by conserving energy, using more natural gas and biofuels, setting higher fuel standards for heavy trucks, and drilling for oil in more areas.

Monday, March 28, 2011

Editorial: Oil NIMBY-ism

Editorial: Oil NIMBY-ism

Monday, March 28, 2011
The Washington Post
When was the last time an American president stood before an audience in a foreign country and announced that he looked forward to importing more of its oil? Answer: Just over a week ago, when President Obama joined political and business leaders in Brasilia in hailing the fact that their newly discovered offshore petroleum reserves might be twice as large as those in the United States. Americans "want to help with technology and support to develop these oil reserves safely, and when you're ready to start selling, we want to be one of your best customers," Mr. Obama said.

Brazil is probably a more stable, secure supplier than, say, Libya. Still, the president's words were ironic. Brazil already produces vast quantities of a fuel - ethanol - that the U.S. government, under a policy long supported by presidents and farm-state members of Congress from both parties, has promoted as a green alternative to gasoline. But the United States, protecting its own heavily subsidized ethanol industry by means of a 2.5 percent tariff and a 54-cent-per-gallon duty, prevents Americans from importing all but trivial amounts of the stuff from Brazil. Therefore, we need more oil - much of it imported. In Brasilia, Mr. Obama spoke of strengthening U.S.-Brazilian technical cooperation on ethanol but did not propose allowing U.S. protectionist measures to lapse after their scheduled expiration on Dec. 31.

As for offshore drilling, Mr. Obama's enthusiasm for punching holes in the ocean floor off Brazil is hard to reconcile with his decision, announced Dec. 1, to keep the waters off the East and West coasts and the eastern Gulf of Mexico off-limits to exploration indefinitely. His policy was a reversal of an earlier decision he had made to open some of those areas. We can understand that reversal, after the massive oil spill in the western Gulf last year. And, demonstrating a measure of flexibility even after the disaster, the administration has announced five deep-water drilling permits in the western Gulf since the spill.

The vast majority of U.S. shores, however, have remained off-limits for decades. This, too, is a policy made by two parties, with Republicans opposing drilling when it suited them; President George W. Bush prevented drilling off the Florida Gulf Coast in part to boost his brother Jeb's 2002 run for a second term as governor. But it is tough to reconcile with U.S. eagerness to "help" Brazil pump oil off its coasts and ship it here. U.S. companies, enticed by government loan guarantees, are already lined up to sell Brazil drilling equipment and services. Forget the implications for U.S. dependency on foreign sources. What does this posture say about American regard for the natural environment outside U.S. territory?

Privileged residents of scenic landscapes in America have long cried "NIMBY" - "Not In My Back Yard" - to stave off unwanted but necessary projects, from railway tracks to wind farms to power lines. Now NIMBY-ism, it seems, has become U.S. policy on offshore oil production. But the Nigerias, Angolas and Brazils of the world do not have that luxury. This makes no sense, economically or environmentally, and, sooner or later, a more balanced view must prevail. 

Friday, March 25, 2011

Top Ten Ways Govt is Preventing Federal Onshore U.S. Production

Top Ten Ways Govt is Preventing Federal Onshore U.S. Production

Friday, March 25, 2011
by  Karen Boman
Rigzone Staff
Western Energy Alliance, formerly IPAMS, reported that at least half of the non-producing onshore U.S. acreage is the direct result of bureaucratic delays imposed by the Obama administration, not oil and gas companies are refusing to develop lands currently under lease.

The organization has published a top ten list to show how bureaucratic delays are not only preventing more production of domestic oil and natural gas today, but putting at risk tomorrow's production as well, said Kathleen Sgamma, the organization's director of government and public affairs.

While companies are in the long process of satisfying all the requirements necessary to begin production, new federal policies and deliberate bureaucratic delays are preventing American production in the West. Western Energy Alliance estimates that about one-third of leased acreage will not be developed by the current leaseholder with today's technology because exploratory work determines there are insufficient resources and other factors.

Sgamma said that the Obama administration continues to deflect blame for leases that are not producing onto the industry, yet their rhetoric displays a misrepresentation of how oil and natural gas development on federal lands works.

"The truth is that companies are doing all they can to develop federal energy resources, but a lease is not a green light to produce—it's the first step in a long, expensive process that is fraught with bureaucratic red tape and lawsuits by environmental groups determined to stop domestic energy development," noted Sgamma.

"Since development on federal lands takes close to ten years, we know that production today is the result of policies and actions from several years ago," said Sgamma. "Symbolic, punitive measures will do nothing to increase domestic energy supply. What's needed is legislation that provides certainty, clears obstacles, and encourages production."

The top ten ways that the government is preventing production on federal onshore leases includes:

Project Approvals: Whether a small project under fifty wells or a large one with thousands, the Department of the Interior (DOI) is simply not approving oil and natural gas projects. Environmental analysis and project approval must occur before companies can even apply for drilling permits. Normally, this process can take over seven years, but companies are currently experiencing indefinite delays.

EPA Overreach: Recent EPA [Environmental Protection Agency] expansion imposes excessive, redundant regulatory burdens on oil and natural gas production and introduces high levels of uncertainty. EPA has directly prevented project approvals in the West. EPA overreach is having a chilling effect on energy production, diverting precious time and resources away from energy development and into non-productive regulatory activities.

Permitting: Companies are not getting permits to drill in a timely fashion. The Bureau of Land Management (BLM) conservatively estimates a 206 day average processing time for permits. Depending on the field office, permits can take over 500 days. Companies cannot start to produce without a permit.

Reduced Leasing: Often producers conduct exploratory work on leases and determine that nearby areas have the right geology for energy production. DOI frequently defers and delays these offset leases needed to develop the existing leasehold. New policies in 2010 added three additional layers of analysis and regulation, on top of the existing five. These bureaucratic delays have led to anemic lease sales, canceled sales, and indefinite deferrals. Delays in obtaining offset leases prevent production on existing leaseholds.

Unissued Leases: DOI continues to hold millions of dollars in unissued leases, despite statutory requirements to issue leases within sixty days of receipt of payment from successful bidders. Unissued leases can hold up production on adjacent existing leasehold.

Stipulations: DOI has cleared much of the backlog of unissued leases in Wyoming, but in many cases has added more restrictions that were not specified at the time of sale. These new restrictions, such as even preventing development from the surface, reduce the value of leases and may render them uneconomic to develop.

Withdrawal of Leases: One of the first things Secretary Salazar did after taking office was to withdraw 77 leases in Utah. That has been followed by the intent to cancel existing leases in the Wyoming Range, after the government had already completed the leasing contracts. Existing, adjacent leases are affected.

Wild Lands: New policies for wild lands mean that DOI can unilaterally determine that an area is suitable for wilderness protection, and delay for years any development while they reinventory the lands and update land use plans. In the meantime, DOI treats these areas as de facto wilderness, despite lacking legal authority, which prevents production on many existing leases.

Climate Change Challenge: Environmental lawsuits have caused DOI to delay leases in Montana while additional environmental analysis and climate change study is done. Rather than settling these lawsuits as in the past, DOI should stand by its analysis that showed no significant impact to climate change from leasing in Montana.

Ad Hoc Requirements: BLM field offices are arbitrarily adding new requirements to permits, and requiring producers to conduct new and redundant analysis without a basis in law. These arbitrary delays in the field are another means of “death by a thousand cuts” that prevent energy production, job creation, and economic development.