All posts in Oil and Gas

Obama Administration to Pass New Laws to Limit Fracking …(Obama Kills More Jobs)

Barack Obama is the worst jobs president since the Great Depression and does not intend to change his position anytime soon…
The Obama Administration is set to pass new rules and regulations to limit the fracking industry, slow production, and kill jobs.
MyFOXNY reported, via Free Republic:

The Obama administration will soon issue sweeping new environmental safety rules for hydraulic fracturing on federal land, setting a new standard that natural gas wells on all lands eventually could follow.

The rules, which are likely to be unveiled by the Interior Department within days, are designed to address concerns that the method of extracting natural gas known as “fracking” can contaminate groundwater. Among other things, they create new guidelines for constructing wells and treating waste water, according to a draft of the proposed rules reviewed by The Wall Street Journal.

At the same time, the department loosened a proposed requirement for companies to disclose the chemicals they use to extract natural gas from the earth, after the industry complained an earlier version would slow drilling too much.

The change, which disappointed environmentalists, is a fresh sign that the administration is heeding industry concerns after Republican complaints of over-regulation.

Last month, the Environmental Protection Agency gave the industry two years to comply with new air quality standards for oil and natural gas wells after the industry complained it would be difficult to meet new standards. Initially, the department wanted energy companies to specify in advance which chemicals they put into fracking fluids.

Under the draft rules, they would instead have to identify the chemicals after they have already put them into the ground. In the weeks leading up to the proposal of the rules, several oil and natural gas companies, including Exxon Mobil and Apache Corp. met with top White House officials to weigh in on possible changes.

Apache declined to comment. ExxonMobil declined to comment.

The Natural Resources Defense Council praised the administration for reducing the potential for contamination under the new rules but said it was disappointed the department had loosened the chemical disclosure requirement.

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Obama Praises McRINO For Believing In Global Warming And Amnesty…

Every RINO’s dream come true.

BURLINGTON, Vt. — President Obama offered some qualified praise for his 2008 GOP rival John McCain, saying that the Arizona senator and onetime presidential rival understood how to work across the aisle and compromise — unlike this year’s Republican contenders.

“In 2008, I was running against a candidate who believed in climate change, believed in immigration reform, believed in reducing deficits in a balanced way,” Obama told about 100 supporters at a fundraiser in Burlington, Vt.

“We had some profound disagreements, but the Republican candidate for president understood that some of these challenges required compromise and bipartisanship.” Obama said.

“And what we’ve witnessed lately is a fundamentally different vision of American and who we are,” Obama said. “It’s a vision that says America is about looking out for yourself, not other people. It’s an America that denies something like climate change, rejects it.”

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World loses its collective mind over hydraulic fracturing

THE TRUTH ABOUT FRACKING

Is fracking safe? And what are the potential benefits that will be forfeited if the practice is ended? Reason’s Nick Gillespie sat down with science correspondent Ronald Bailey to learn the truth about fracking. Bailey reports that the cases of contaminated water supplies were the result of poorly designed wells that had nothing to do with fracking itself. As important, he notes that the gas generated by fracking would not only massively increase American energy supply, it would do so with a relatively clean and cheap fuel.

Wyoming Governor Reacts To EPA “Draft Finding” On Fracturing

People’s Press Collective

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While the rest of the world loses its collective mind over an Environmental Protection Agency “draft finding” that hydraulic fracturing may be the cause of groundwater contamination in Pavillion, Wyoming, Governor Matt Mead is a voice of reason. In a press release from his office, Mead stated, “the Environmental Protection Agency’s draft study on Pavillion wells is scientifically questionable and more testing is needed.”

Too much is at stake, according to Mead, including his state’s economic and environmental health and well being, to overreact to “draft findings”… “based on data from two test wells drilled in 2010 and tested once that year and once in April, 2011. Those test wells are deeper than drinking wells.”

Bottom line is that more information is needed before blaming hydraulic fracturing, but that won’t prevent hysteria in the anti-fossil fuel crowd. The full text of Governor Mead’s press release is below:

Governor Mead: Implications of EPA Data Require Best Science

CHEYENNE, Wyo. – Governor Matt Mead said today that the Environmental Protection Agency’s draft study on Pavillion wells is scientifically questionable and more testing is needed.

“We believe that the draft study could have a critical impact on the energy industry and on the country so it is imperative that we not make conclusions based on only four data points,” Governor Mead said. “Those familiar with the scientific method recognize that it would not be appropriate to make a judgment without verifying all of the testing that has been done.”

Residents near Pavillion have complained about their water wells for several years. They are entitled to answers and they need clean water. Therefore, Wyoming formed a working group to investigate the problem. That group included residents, state agencies, Tribes, EPA and the Bureau of Land Management. The study released today from EPA was based on data from two test wells drilled in 2010 and tested once that year and once in April, 2011. Those test wells are deeper than drinking wells. The data from the test wells was not available to the rest of the working group until a month ago.

Read more:

 

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Harper Tells Obama Canada Will Sell Oil to Asia Since His Administration Delayed Pipeline (Obama Loses Another 1 Million US Jobs)

Gateway Pundit
Posted by Jim Hoft on Monday, November 14, 2011, 11:54 AM

The Keystone Pipeline project was expected to create up to 1,000,000 high-paying US jobs in the oil manufacturing and associated industries. The project itself would create20,000 construction jobs

But it was just a big pipe dream.

(Bob McCarty)

Prime Minister Stephen Harper speaking at 2009...

Image via Wikipedia

Obama refused to sign the Keystone agreement last week. Today Canadian Prime Minister Harper told Obama that he would look to Asia to sell its oil.

The Republic reporteed, via Free Republic:

Canada’s prime minister says he made it clear in a meeting with U.S. President Barack Obama that Canada will step up its efforts to sell oil to Asia since the Obama administration delayed a decision on an oil pipeline.

Prime Minister Stephen Harper says Canada will continue to push the U.S. to approve the $7-billion Keystone XL project.
Prime Minister Stephen Harper says Canada will continue to push the U.S. to approve the $7-billion Keystone XL project. Last week the U.S. State Department ordered that the pipeline be rerouted and subject to further environmental review, delaying a decision until 2013.

Harper says the U.S. move highlights why Canada must increase its efforts to diversify its exports to Asia. He says he communicated that clearly to Obama.

Nice work, Barack.

Al Qaeda blows up Egyptian-Israeli gas pipeline after killing 7 in El Arish raid

DEBKAfile Special Report July 30, 2011, 5:09 PM (GMT+02:00)

Al Qaeda rides into Sinai capital, El Arish

The day after their El Arish rampage, Al Qaeda gunmen Saturday, July 30, blasted the al Shulaq terminal of the Egyptian-Israeli gas pipeline on the Mediterranean sea shore north of the Sinai town, halting supply for the fifth time since February and the third time this month.

This time was different. The saboteurs fired rockets at the terminal until it caught fire, the same tactics they used to raid the El Arish police station Friday. Egyptian forces confronted the assailants but could not save the terminal. This was al Qaeda’s first attack on a strategic Israeli installation.
Back to DEBKAfile’s main story.

In a Taliban-style raid, at least 150 masked, uniformed al Qaeda gunmen rode into the Sinai capital of El Arish on pickups and motorcycles Friday, July 29, shooting up the desert town with heavy machine guns, rocket-propelled grenades, mortars and automatic rifles. Before they rode out six hours later, at least seven people were killed, and upward of 30 injured.

Egyptian police and troops pulled back to their fortified station as terrified citizens of this desert town of 150,000 inhabitants fled the rampage. At least two of the dead were Egyptian civilians, a man of 70 and a 13-year old boy shot while take a cell phone picture.

DEBKAfile’s military sources report that round about 1800 hours, the assailants split into two groups, one keeping up the street attacks, the other heading for the police station.

Witnesses said the masked gunmen were not local because they lost their way several times and asked for directions to the police station. They then attacked the building with rockets and a battery of five mortars – the first time al Qaeda in Sinai is known have procured mortars, setting a police armored truck and other vehicles on fire. Rather than capturing the police station, the gunmen appeared concerned to keep the police pinned down in a shootout and to prevent from interfering with the deliberate occupation of the town.

The Egyptian news agency reported an Egyptian lieutenant colonel and captain died in the shootout . The number of dead and injured may be higher than reported. Two military planes were sent out from Cairo to evacuate the casualties.
After nightfall the gang withdrew to central Sinai.
El Arish townsmen are convinced that the black-uniformed jihadis, having demonstrated that they can’t be stopped, will be back and next time, stay to proclaim Sinai a Muslim caliphate.

DEBKAfile notes that El Gorah, 20 kilometers to the west, houses the international MFO established there nearly three decades ago to monitor the Sinai demilitarization provisions of the Israel-Egyptian peace treaty. Attached to the force are 1,000 troops, most of them American and Canadian marines.
This command center has been on supreme alert for an al Qaeda threat for seven months. Since President Hosni Mubarak was overthrown, Hamas, al Qaeda and Bedouin gunmen have been running riot through Sinai, while Egyptian security officers stay holed up in their bases.
Israeli forces deployed the length of the Egyptian border likewise stood aside while El Arish was occupied and terrorized by al Qaeda. According to DEBKAfile’s counter-terror sources, none of the Egyptian, Israeli or American intelligence agencies monitoring the desert peninsula were prepared for al Qaeda to raise a force of hundreds of men, oufit them with uniforms, heavy arms and vehicles and train them in the military skills and disciplines required for capturing a complete town two and-a-half hours drive from Tel Aviv and five hours from Cairo.

Until July 29, al Qaeda in Sinai was believed to be no more than a handful of cells mostly working with local Bedouin dope and arms smuggling rings. None suspected them of acquiring quasi-military competence.

This evaluation will have to be urgently revised now that the Egyptian authorities have lost their grip on Sinai. The lawlessness reigning today in this strategic territory, which abuts on Israel, the Red Sea and Suez Canal, is cause for Israeli and US alarm.

Can We Drill Now, Mr. President?

By Charlie Daniels | February 15, 2011 | 12:19

I am not a sage, a soothsayer or even a wise man but it has been as obvious as the nose on my face, every since this upheaval in Egypt started that the country is going to end up in radical Islamic hands.

It may be less obvious, but never the less inevitable, that the rest of the Middle Eastern Muslim countries are going to follow suit sooner or later.

The fact is that our president, the state department, homeland security and everybody else in this administration, with the exception of the military, is naive, inept and incapable of dealing with the situation and seems perfectly content to let Egypt become another al-Qaeda base of operations.

People can’t you see what’s happening here?

The only democracy and the only ally we have in the Middle East is Israel and the incompetency of the Obama administration is even more threatening to Israel’s security than it is to ours, and that’s saying something.

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A Brief Tour Of The 7 Oil Chokepoints That Are Crucial To The World Economy

#1 The Strait of Hormuz

“The most important oil chokepoint due to its daily oil flow of 15.5 million barrels…”
EIA: Located between Oman and Iran, the Strait of Hormuz connects the Persian Gulf with the Gulf of Oman and the Arabian Sea. Hormuz is the world’s most important oil chokepoint due to its daily oil flow of 15.5 million barrels in 2009, down from a peak of 17 million bbl/d in 2008. Flows through the Strait in 2009 are roughly 33 percent of all seaborne traded oil (40 percent in 2008), or 17 percent of oil traded worldwide.
On average, 13 crude oil tankers per day passed eastbound through the Strait in 2009 (compared with an average of 18 in 2007-2008), with a corresponding amount of empty tankers entering westbound to pick up new cargos. More than 75 percent of these crude oil exports went to Asian markets, with Japan, India, South Korea, and China representing the largest destinations.

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6000 Workers Sit In, As The First Suez Canal Strike Has Begun

The news out of Egypt has certainly gotten quieter, but the story isn’t over yet.
According to Ahram Online (via NYT), the first worker strike at the uber-important Suez canal have gone on strike. 6,000 workers are sitting in. Specifically they are opposing weak pay and bad conditions.
So far there’s been no disruptions. That doesn’t mean there won’t be.

Read more:

The Interior Department’s culture of contempt


By Michelle Malkin • February 4, 2011 09:55 AM
Eco-radical Carol Browner may no longer be on the Team Obama bus, but her departure has done little to change the culture of corruption — and contempt — at 1600 Pennsylvania.
As I reported yesterday, federal judge Martin Feldman kicked the administration’s ass yet again over its rogue drilling moratorium.
My column today zeroes in yet again on Interior Department control freak Ken Salazar. As I’ve said repeatedly over the last two years: The Obama War on the West is a War on Jobs that extends from land to sea based on politicized junk science by executive fiat and czar evasion.

While they pay lip service to “Startup America,” they are pulling out the stops to shut it down.
On a related note: Today’s jobless numbers released.

***
The Interior Department’s Culture of Contempt
by Michelle Malkin
Creators Syndicate
Copyright 2011
Oops, they did it again. President Obama’s grabby-handed environmental bureaucrats have earned yet another spanking from the federal judiciary over their “determined disregard” of the rule of law. Isn’t it time to give these misbehaving government hooligans a permanent timeout?

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Decrease in drilling leads to blame game

An attorney working for the oil and gas industry this week warned the Garfield County commissioners that over-regulation, not an economic recession, drove the industry out of Garfield County and the state of Colorado in 2008.

And, said attorney Scott Balcomb, the industry will not come back unless local and state governments stay out of the industry’s way.

Others, however, said the current slump in the gas industry is due to the larger economy and not related to regulation at the local or state level.

Balcomb, whose firm represents the gas-drilling company Antero Resources, told the Board of County Commissioners on Jan. 3, “We’re on the verge of a very bad time in Garfield County,” thanks to a decrease in drilling activities over the past year and a half or so.

The county, he said, should “not be involved in every aspect of everyday life in the business of this company,” referring to the county’s “intervention” in Antero’s efforts to intensify its drilling rights in the Silt Mesa/Peach Valley area.

Antero has requested that the Colorado Oil and Gas Conservation Commission permit the company to increase its drilling density to one well per 10 acres, rather than the current permissible level of one well per 40 acres.

The county, at the urging of residents of Silt Mesa concerned about the impacts of intensified drilling, has filed two “intervention” actions with the COGCC.

The county’s intervention asks the state agency to either deny the application for “10-acre spacing,” as it is known, or to require Antero to mitigate any negative impacts of their drilling activities.

“We’re getting more and more regulation and less and less business activity,” Balcomb proclaimed. “Now the county’s trying to push its way in to regulating the oil and gas industry.”

He expressed a belief that tighter regulations on the industry, adopted by the COGCC in 2007 and put into effect in 2008, were responsible for the current downturn in the industry locally.

Commissioner Trési Houpt, however, took exception with Balcomb’s premise, noting, “We had a huge recession at the same time [starting in mid-2008],” arguing that it was the recession, not the new regulations, that lead to the downturn.

She also noted that the county has had some involvement with regulating the industry for the past eight years, including the period when the industry was booming.

“We have a different goal than a private corporation does,” she continued. “We are charged with the protection of the public of Garfield County.”

Balcomb, conceding that not everybody agrees with his premise that regulations ruined the industry, nevertheless accused Houpt of being “not willing to step up and take part of the responsibility.” Houpt is a member of the COGCC, and was on the commission when the new rules were adopted.

Others at the commissioners’ meeting sided with Houpt, including Dave Pegg, a property owner and mineral rights holder on Silt Mesa.

He called it “disingenuous of industry to say they will go somewhere else” unless government restrictions are loosened.

“The oil and gas is here,” he declared, explaining that the industry’s local presence will revive itself when the economy is more favorable.

“It’s simple economics,” added another Silt Mesa resident, Carl McWilliams.

The price of natural gas is around $4 per million BTUs, more than a dollar lower than last year’s prices at this time and well below its profitable peaks of several years ago.

The result, McWilliams emphasized, is that “there’s no market demand right now.”

Given those circumstances, he continued, “it’s better for [the industry] to leave the gas in the well” until prices rise, and that is what has caused a slowdown of industry activity.

jcolson@postindependent.com