California needs new approach to OCS leasing, too

Bob Tippee

Are Californians serious? When they kicked Gray Davis out of the governor's office on Oct. 7, did they truly intend to repair their state's economy?

The rest of the US has a large stake in answers to these questions.

California has a $38 billion public deficit, an economy weakened by companies fleeing excessive regulation and social mandates, and a highly taxed population understandably reluctant to surrender more of their wealth to the state.

It soon will have Republican actor Arnold Schwarzenegger as governor.

Media attention focuses on what the political-party shift might mean to next year's presidential election.

Some of it should go to how origins of California's budget problems already affect non-Californians.

A political orientation responsible for much of the state's fiscal mess costs the nation plenty.

Because influential Californians don't like the sight of offshore oil and gas equipment, they've managed to shut down not only leasing of federal acreage off their state but also activity on existing but undeveloped leases.

The state and federal governments therefore have far less lease-bonus, royalty, and income-tax revenue to share than they would have otherwise. And a promising resource makes only a fraction of its potential contribution to US energy supply.

East Coast states mimic California's ridiculous aversion to wealth from hydrocarbon resources.

And while oil and gas potential goes untested and underdeveloped off the East and West coasts and in the eastern Gulf of Mexico, the federal government touts wildly expensive hydrogen as preferable to imported oil.

The federal government needs to get serious, too.

"Hallelujah!" declared Davis last April when the Bush administration relinquished a legal challenge to his plan to buy back 36 undeveloped federal leases.

"Californians are adamantly opposed to offshore oil drilling. I will not rest until we have written 'closed' to every undeveloped lease."

The costs of that attitude are coming due—and not just in California.

Californians were serious enough about their state's economic future to unseat a governor.

They should be serious enough about it to allow resource development, the foreclosure of which no economy—not even California's—can afford.

(Author's e-mail: bobt@ogjonline.com)

Related Articles

Study looks at gas transmission, storage sites’ methane releases

07/21/2015 A comprehensive study of US natural gas transmission and storage operations found total methane emissions from 2,292 on-site measurements, addition...

Well completed at Vostochno-Messoyakhskoye oil field onshore Russian Arctic

07/21/2015 JSC Gazprom Neft reported completion of construction of the first production well at Vostochno-Messoyakhskoye oil field on the Gydan Peninsula in n...

Total starts oil flow from Dalia Phase 1A on Block 17 off Angola

07/21/2015

Total SA has started production from Dalia Phase 1A, a development on the company’s deep offshore operated Block 17, 135 km offshore Angola.

CNOOC starts oil production from Luda 10-1 adjustment project

07/21/2015 CNOOC Ltd. said its comprehensive adjustment project at Luda 10-1 oil field has started production in the Liaodong Bay area of Bohai Gulf (OGJ Onli...

Last key structure sails for Cygnus off UK

07/21/2015 The last of four main structures for Cygnus natural gas field has departed the Heerema Hartlepool yard in the UK en route to installation on North ...

EPA needs to improve oversight of fracing with diesel, OIG report says

07/20/2015 The US Environmental Protection Agency needs to improve its oversight of hydraulic fracturing using diesel fuels and address any compliance issues,...

URTeC: Shell’s Hackbarth says unconventional innovation begins with data

07/20/2015 Operators should resist the impulse to pull back on investments in technology despite a down oil market, said Claudia J. Hackbarth, manager, unconv...

BPTT relocates Juniper project fabrication work to Texas

07/20/2015 BP Trinidad & Tobago LLC (BPTT) reported that it has agreed to relocate fabrication of its Juniper platform’s jacket and piles from Trinidad Of...

URTeC: Panel sees resiliency in unconventional space

07/20/2015 Panelists commented on future recovery of oil prices and the growth of unconventional drilling, then took questions from an overflow audience durin...
White Papers

UAS Integration for Infrastructure: More than Just Flying

Oil and gas companies recognize the benefits that the use of drones or unmanned aerial systems (UAS) c...

Solutions to Financial Distress Resulting from a Weak Oil and Gas Price Environment

The oil and gas industry is in the midst of a prolonged worldwide downturn in commodity prices. While ...
Sponsored by

2015 Global Engineering Information Management Solutions Competitive Strategy Innovation and Leadership Award

The Frost & Sullivan Best Practices Awards recognise companies in a variety of regional and global...
Sponsored by

Three Tips to Improve Safety in the Oil Field

Working oil fields will always be tough work with inherent risks. There’s no getting around that. Ther...
Sponsored by

Pipeline Integrity: Best Practices to Prevent, Detect, and Mitigate Commodity Releases

Commodity releases can have catastrophic consequences, so ensuring pipeline integrity is crucial for p...
Sponsored by

AVEVA’s Digital Asset Approach - Defining a new era of collaboration in capital projects and asset operations

There is constant, intensive change in the capital projects and asset life cycle management. New chall...
Sponsored by

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by

Asset Decommissioning in Oil & Gas: Transforming Business

Asset intensive organizations like Oil and Gas have their own industry specific challenges when it com...
Sponsored by
Available Webcasts


The Resilient Oilfield in the Internet of Things World

When Tue, Sep 22, 2015

As we hear about the hype surrounding the Internet of Things, the oil and gas industry is questioning what is different than what is already being done. What is new?  Using sensors and connecting devices is nothing new to our mode of business and in many ways the industry exemplifies many principles of an industrial internet of things. How does the Internet of Things impact the oil and gas industry?

Prolific instrumentation and automation digitized the industry and has changed the approach to business models calling for a systems led approach.  Resilient Systems have the ability to adapt to changing circumstances while maintaining their central purpose.  A resilient system, such as Maximo, allows an asset intensive organization to leverage connected devices by merging real-time asset information with other critical asset information and using that information to create a more agile organization.  

Join this webcast, sponsored by IBM, to learn how about Internet of Things capabilities and resilient systems are impacting the landscape of the oil and gas industry.

register:WEBCAST



On Demand

Taking the Headache out of Fuel License and Exemption Certificates: How to Ensure Compliance

Tue, Aug 25, 2015

This webinar, brought to you by Avalara, will detail the challenges of tax document management, as well as recommend solutions for fuel suppliers. You will learn:

-    Why it’s critical to track business partner licenses and exemption documents
-    The four key business challenges of ensuring tax compliance through document management
-    Best practice business processes to minimize exposure to tax errors

register:WEBCAST


Driving Growth and Efficiency with Deep Insights into Operational Data

Wed, Aug 19, 2015

Capitalizing on today’s momentum in Oil & Gas requires operational excellence based on a clear view of what your business data is telling you. Which is why nearly half* of oil and gas companies have deployed SAP HANA or have it on their roadmap.

Join SAP and Red Hat to learn more about using data to drive process improvements and identify new opportunities with the SAP HANA platform running on Red Hat Enterprise Linux. This webinar will also show how your choice of infrastructure impacts the performance of core business applications and your ability to achieve data-driven insights quickly and reliably.

*48% use SAP, http://go.sap.com/solution/industry/oil-gas.html

register:WEBCAST


OGJ's Midyear Forecast 2015

Fri, Jul 10, 2015

This webcast is to be presented by OGJ Editor Bob Tippee and Senior Economic Editor Conglin Xu.  They will summarize the Midyear Forecast projections in key categories, note important changes from January’s forecasts, and examine reasons for the adjustments.

register:WEBCAST


Emerson Micro Motion Videos

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected