GENERAL INTEREST — Quick Takes
API tries to increase advocacy with 'Energy Nation'
The American Petroleum Institute announced its second major campaign in as many days as it introduced Energy Nation, an advocacy program "to give the millions of members of America's oil and gas industry an easy tool to make our voices heard in Washington, DC," it said in a widely distributed Jan. 5 e-mail. The effort followed the introduction of API's "Vote 4 Energy" campaign to mobilize public support for political candidates favoring increased domestic energy production at the association's annual State of American Energy luncheon a day earlier.
"Every day, policymakers across the country debate issues that directly affect our industry, our jobs and our country's energy and economic security," Gerardio Ura, Energy Nation's general membership director, said in the e-mail message. "Therefore it is vital that decision-makers hear from us—the people who work every day to deliver safe, reliable, and affordable energy across the country."
It was not clear how Energy Nation would fit with other oil and gas associations' already extensive advocacy programs, such as the Independent Petroleum Association of America's Political Toolkit and Friday Fact Checks. OGJ has learned, however, that staff officials in these associations received an e-mail on Jan. 5 from API Pres. Jack N. Gerard about "Vote 4 Energy" encouraging them to join and support that campaign.
Energy Nation's web site includes a "Vote Energy in 2012" prompt for users to register to vote and to find their polling stations in line with "Vote 4 Energy". It also encourages those who join to sign a pledge supporting "a common-sense approach to energy in America"; to encourage coworkers, friends, and family members to join; and to attend upcoming industry events.
In addition to oil and gas industry employees, membership is open to retirees and those working for contractors and suppliers. "Together, we can fight the misperceptions and criticisms that get in the way of the work we do," Ura said in his e-mail.
Pennsylvania DEP fines Talisman for incident
The Pennsylvania Department of Environmental Protection fined Talisman Energy USA Inc. $51,478 for a January 2011 gas well-control incident during hydraulic fracturing in Ward Township, Tioga County.
"Equipment failure during fracing on Jan. 17 caused about 21,000 gal of hydraulic fracturing fluid and sand to be released for about 3 hr," DEP North-central Regional Director Nels Taber said.
Fluid discharged from the wellhead under high pressure. Vacuum trucks recovered the fluid on the well pad. No streams, wetlands, or private drinking water wells were touched by the spill.
Regulators said the incident was caused by a needle valve that had failed and could not be shut off. To regain control of the well, the hydraulic valve above the master valve was remotely closed. Fluid was allowed to flow back through the production test separator. A new pipe connector called a hammer union was also installed and closed.
Inspectors confirmed Talisman repaired a torn liner, replaced failed equipment, and removed contaminated soil beneath the liner within days of the incident.
Shell to buy Ivanhoe's stake in Zitong
Shell China Exploration & Production Co. Ltd. agreed to buy Ivanhoe Energy Inc.'s stake in a production-sharing contract for Zitong block in China's Sichuan basin for $160 million.
Ivanhoe's interest in the tight natural gas play is held by wholly owned subsidiary Sunwing Zitong Energy (OGJ Online, Jan. 17, 2011).
Shell China E&P signed a binding memorandum of understanding with Sunwing, and the transaction remains subject to government approvals. Closing is expected by yearend.
Ivanhoe said it decided to sell its Zitong assets to concentrate on its core business of international exploration, development, and its proprietary heavy-to-light (HTL) oil upgrading process. Sunwing has been active in China for more than 10 years.
Following closing, Shell will assume a $20 million performance bond that Ivanhoe was required to post as part of an agreement with the China National Petroleum Corp.
Ivanhoe Pres. and Chief Operating Officer David Dyck said, "We will focus our resources on our oil projects in Canada, Ecuador, Mongolia, and the Dagang project in China, as well as the commercialization of our proprietary HTL upgrading process."
Sunwing discovered gas at two wells on Zitong block, where it owns a 90% stake. Mitsubishi Gas Chemical Co. Inc. owns the remainder.
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