Results tagged “energy security”

An article in today's Shreveport Times discusses the initial production results of Bossier Shale formation, and the findings are encouraging enough that it is expected to become a major player in U.S. natural gas development. The first Bossier Shale well was drilled in August flowed at 9.4 million cubic feet per day.

"Remarkable" was the word used by Energy Information Administrator Richard Newell last week to describe the sharp rise in U.S. natural gas reserves. In a report issued by his agency last week, Newell noted that U.S. proven natural gas reserves rose 3 percent in 2008.

The report also showed that natural gas reserves in shale formations rose an astonishing 51 percent over 2007. "This year's report underscores for a second year the technological shift in domestic exploration and production from conventional reserves to unconventional shales," Newell said.

Yesterday, Interior Secretary Ken Salazar announced that a second round of oil shale research and development on leases with vastly diminished potential commercial acreage will resume.

Secretary Salazar's decision is a positive step in the process of developing the innovation and technology needed to bring production from the nation's vast oil shale resources to American consumers.

How do you define the expression "energy security?" To many people, it means having a secure supply of energy to support the American way of life--ample gasoline for the car, heat for the home, and chemicals to make products used in households and hospitals throughout the United States.

U.S. oil and natural gas drilling rose slightly in the third quarter of 2009, but it still was quite sluggish. "API's Quarterly Well Completion Report: Third Quarter" showed that total well completions rose 10.2 percent from the second quarter of this year, but the total number of wells and dry holes was down 46 percent from 2008's third quarter.

The U.S. Supreme Court today declined to consider an extremely important Fifth Circuit decision on royalty relief. This adds finality to the Fifth Circuit's unanimous decision that Congress, when it passed the Deepwater Royalty Relief Act, provided royalty relief based on volume, not price.

Today is your last chance to write to the government to support the Five-Year offshore drilling plan. At the close of business today, the Minerals Management Service (MMS) will end the public comment period, tally the emails and letters, write a report on its findings, and help the Secretary of the Interior decide whether to implement the government's offshore drilling plan.

Back in February, Secretary of the Interior Ken Salazar announced that he was extending the public comment period for the Draft Proposed Program on Outer Continental Shelf (OCS) energy development. The comment period ends right around the corner--September 21, 2009--and at this time the Minerals Management Service (MMS) will analyze comments and make recommendations.

In a move that relieves some of the legal worries about offshore oil and natural gas development, the U.S. Court of Appeals for the District of Columbia has ruled that the 2007-2012 offshore leasing plan can move forward uninterrupted.

California wisely has decided to use a portion of its abundant natural resources to pay for services to its citizens. An estimated $1.8 billion in state royalty payments are expected over the life of developing these resources, and the funds will help defray the state's budget shortfall as well as increase our nation's energy security.

Individuals who oppose U.S. oil and natural gas development often cite the following sentence: "The United States represents 5 percent of the world's population but uses 25 percent of the world's energy."

Ouch. That sentence makes all of us appear to be wasteful, slothful, and uncaring about the environment. But like a lot of other statements created to appeal to our sensitivities, it exaggerates the truth and leaves out some very important facts.

Here's an interesting factoid for you: America's reliance on imported oil has been falling. According to API's Monthly Statistical Report for June, imports fell 7.6 percent during the first half of 2009 as compared with the same period a year earlier. This drop was on top of two consecutive annual declines in crude oil and oil product imports in 2007 and 2008.

Yesterday's Richmond Times-Dispatch editorial, "Energy: Drill, Baby" discussed the nation's current and potential energy reserves and stressed the importance of increased access to oil and natural gas:

"...The country needs a broad spectrum of reliable and abundant energy sources. But fossil fuels will continue to make up a major part of the equation for years, if not decades. Start drilling--now."

Did you know that Congress is about to consider massive taxes and fees on the U.S. energy sector?

A new Institute for 21st Century Energy report argues that these taxes and fees, specifically on the oil and natural gas industry, could harm the U.S. economy at precisely the wrong time--during a deep recession. According to the report, the Obama administration's tax proposal and House Natural Resources Committee's proposed energy bill would jeopardize U.S. jobs, erode the nation's economic competitiveness, and do nothing to help U.S. energy security.

Today, the American Petroleum Institute (API) and labor unions announced the historic creation of the Oil and Natural Gas Industry Labor-Management Committee, which will work to preserve and create jobs by promoting domestic oil and natural gas production. Currently, the industry employs more than 1.8 million American workers and supports another 4 million workers.

As API President and CEO Jack Gerard noted a couple of days ago, the U.S. Senate Energy and Natural Resources Committee voted 13-10 on Tuesday to open the eastern Gulf of Mexico to oil and natural gas development.

This should be welcome news to American consumers. If this amendment is enacted as part of the Senate's proposed energy bill, the United States finally will be able to harness the power of the area's abundant energy resources that have been off-limits for many years. It's estimated that the eastern Gulf contains 3.7 billion barrels of oil and 21.5 trillion cubic feet of natural gas, which are huge deposits by any measure. Producing the energy will create jobs, generate revenues for government and make more domestic energy available to consumers.

Yesterday, the Senate Energy and Natural Resources Committee voted 13 to 10 in favor of opening the Eastern Gulf of Mexico for additional oil and natural gas leasing.

By allowing greater access to leasing in promising areas of the Eastern Gulf of Mexico, Senator Dorgan's amendment stands to strengthen our economy and help the American people by creating new jobs, adding new energy resources and providing new revenues to federal, state and local governments.

In this week's episode, I talk with Kevin Book, a principal at ClearView Energy Partners, LLC, about energy legislation being considered in Congress. We also briefly discuss energy security issues and the recent rise in oil and gasoline prices.

A new public opinion poll indicates that Americans living in mid-Atlantic coastal areas support offshore drilling. In the survey conducted in April, Monmouth University researchers found 46 percent of coastal residents from Virginia to New York favor offshore energy exploration; 37 percent were opposed and 12 percent offered no opinion.

A couple of days ago, the Sierra Club posted on The Hill's blog, questioning whether it's safe to bring more Canadian oil sands crude oil into the United States via pipeline. I posted a comment to this post last night, and today on this blog, I'm providing additional information to set the record straight. Simply put, the Sierra Club post grossly exaggerates the risks and ignores the benefits of transporting oil derived from Canada's abundant oil sands to the United States. And it mischaracterizes the pipelines that carry this much-needed oil to American consumers.