In a recent op-ed in the Argus Leader, John Duff Erickson, professor emeritus at the South Dakota School of Mines and Technology, makes a strong case for continuing the development of Canadian oil sands. He notes that Canada is the largest supplier of oil to the United States, and Canadian oil is helping to bolster U.S. energy security.

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.

In a recent Houston Chronicle op-ed, Richard Burleson, managing partner of Houston-based and energy-focused law firm Burleson Cooke L.L.P., cautions the administration and Congress against over-regulating hydraulic fracturing. As we've explained in this blog, hydraulic fracturing is a process where fluid is pumped under pressure down through the wellbore to make tiny fissures in the rock, allowing natural gas and oil to flow more easily up through the well.

Pennsylvanians are sitting on a buried treasure. It's called the Marcellus Shale formation, and a new study quantifies its potential impact on the state's economy and jobs. According to the study, the state's economy will receive an infusion of $14.17 billion in 2010 due to Marcellus Shale natural gas development, creating more than 98,000 jobs and generating $800 million in state and local tax revenue.

Two new independent studies commissioned by the Alberta Energy Research Institute (AERI) have found that emissions from producing, transporting and refining oil sands are not significantly higher than emissions from other forms of crude oil refined in the United States. The studies found that direct greenhouse gas emissions from oil-sands derived crude oils are generally 10 percent higher, but when cogeneration is taken into consideration, the difference disappears.

Put yourself in this situation. You decide to build your Dream Home. You buy the perfect lot, hire a general contractor and receive your first shipment of lumber. Then, just as the cement truck is preparing to pour the foundation, you learn that there's been a legal glitch--you might not own the lot after all. What would you do? You've already spent a sizable amount of money, and you don't know whether you'll ever be able to build your house.

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.

Ethanol, which in the United States is generally made from corn, has been an important part of the gasoline supply for several years. In many regions of the country and in certain seasons, it accounts for as much as 10 percent of the gasoline fuel supply.

Last Friday, the Richmond, Virginia, area was the scene of two rallies against the Waxman-Markey cap-and-trade bill and the administration's health care plan. One occurred in front of Sen. Mark Warner's office in Chesterfield County; the other was held in downtown Richmond on East Franklin Street where Sen. Jim Webb's office is located. Virginia Petroleum Council Executive Director Mike Ward shot video of the downtown demonstration and reported that approximately 200 people held signs and marched on both sides of the street between noon and 1:00 p.m.

In an op-ed from yesterday's Pittsburgh Post-Gazette, Robert W. Watson, emeritus associate professor at Penn State University, talks about the importance of increased energy development--specifically the shale gas that rests in the Marcellus Shale formation.

As we've noted several times on this blog, the costs and job losses that could be caused by the House-passed climate bill are quite large--almost too large to fully comprehend. Therefore, API has produced a series of brief papers that break down the bill's impact on a state-by-state basis. 

The House-passed climate bill is one of the most complicated and costly bills ever considered by Congress. At more than 1,400 pages, it's even longer than War and Peace. Yet, there's a portion of the U.S. economy that is being short-changed by the measure--transportation, one of the most vital sectors of the economy and the American way of life. Our transportation system of roads, trains, buses, cars, trucks and airplanes makes it possible to get to work, to school, to church, vacation, and perhaps most importantly, to attend the most important milestones in our family's lives--births, graduations, and weddings.

The U.S. Geological Survey calls the Bakken formation the largest continuous oil accumulation it has ever assessed--and nearby, there may be even more North Dakota oil than was previously thought.

Jimmie James has experienced life without the modern conveniences supplied by electricity. Growing up in small town in Texas, he says he and his family used wood for heat and kerosene in their lamps. "It's not something I saw on the History Channel," he says. "It was something I lived." Today he's grateful that his life, as well as the U.S. standard of living, is vastly improved due to oil and natural gas and their contributions to society. And he doesn't want to return to the past through a well-intended but ill-conceived energy policy.

"This issue affects every person on the planet," Jimmie says, adding that it is "important that all of us participate."

By today's estimates, there are about two trillion barrels of recoverable conventional oil resources worldwide, and as much as twice that in additional frontier resources like extra-heavy oil, oil sands, and oil shale and shale gas. The U.S. Department of Energy (DOE) conservatively estimates oil shale formations in Colorado, Utah and Wyoming contain 800 billion barrels of recoverable oil--more than three times the proven reserves of Saudi Arabia. 

There's a lot of energy-related news today. I thought I would share some of the headlines with you.

Recently, oil prices have traded in the $60 a barrel range. The global price of oil has fallen sharply over the past seven trading days after reaching $73 a barrel last week. Gasoline prices have tracked oil prices for decades. Read more about gasoline and crude oil prices.

API's weekly statistical report about oil demand and supply showed that while gasoline demand rose slightly just before the July 4^th holiday as Americans prepared for holiday travel, inventories of gasoline and diesel have remained at very high levels. According to external analysts, the unusually large inventories signal that the recession still has a firm grip on the economy.

Despite what you may have heard, the nation's air quality has improved markedly over the past several years. And part of the air quality improvement can be attributed to a major change in diesel fuel.

In June 2006, refiners began reducing the amount of sulfur in diesel fuel to make Ultra-Low Sulfur Diesel (ULSD), which is supplanting traditional diesel fuel formulations during a transition period determined by the U.S. Environmental Protection Agency.

On the surface, the companion bills introduced into the U.S. House and Senate seem quite benign. They propose to regulate hydraulic fracturing under the Safe Drinking Water Act, adding federal oversight to the oil and natural gas field process. In actuality, they could be an economic disaster waiting to happen.