International news for oil and gas professionals
About 35 years ago, 10 exploratory wells were drilled in the US portion of the Georges Bank basin 120 miles off Cape Cod, Mass. Environmentalists came out against drilling, and their arguments, including the claim that the fishing industry would be destroyed, were ultimately persuasive. Drilling ceased, yet to be restarted.
Environmental policy set by judges can thrill lawyers but confound everyone else. This, of course, explains the energetic litigiousness of environmental groups unable to work their will politically.
LNG exports quickly took center stage at a June 19 US Senate Energy and Natural Resources Committee hearing to examine "how to harness a game-changing resource for export, domestic consumption, and transportation fuel."
The Federal Energy Regulatory Commission authorized Cameron LNG LLC's plan to build and operate facilities to liquefy and export natural gas from its existing LNG import terminal in Hackberry, La.
The US Department of the Interior has proposed regulations for valuing crude oil produced on American Indian leases. The rules would offer greater simplicity, certainty, and clarity in Indian oil valuation and could boost Indian Country royalties by $20 million/year, DOI said on June 18.
As he announced his support for it, US Sen. John A. Barrasso (R-Wyo.) said the Energy and Natural Resources Committee's vote on Chairwoman Mary L. Landrieu's (D-La.) bill to bypass the White House and approve the Keystone XL crude oil pipeline "seems more like a cheerleading exercise than a meaningful effort to get Keystone built."
The American Petroleum Institute urged the US Environmental Protection Agency to quit dragging its feet and issue final 2014 ethanol blending quotas that are months overdue.
Despite continuing US production increases, global crude oil prices could climb as much as $40/bbl if instability in Iraq persists, Securing America's Future Energy (SAFE) warned in a recent report.
In production since 1965, the southern North Sea has long been perceived as a mature play with very few new opportunities. While the region's production has remained stable, operators focused in the region have been forced to look outside of the productive fairways and other areas to find additional reserves.
The US Supreme Court has asserted limits to the Environmental Protection Agency's authority to regulate greenhouse gases (GHGs) specifically but approved limitation of GHG emissions from plants subject to control of other pollutants covered by the Clean Air Act.
A slight decrease in capital spending by US oil and gas companies in 2013 gave way to a 9% increase in oil and gas reserves, strong oil prices, and improving natural gas prices, Ernst & Young reported June 24 in its annual US oil and gas reserves study.
US crude oil production in May increased 14.7% from May 2013 to 8.3 million b/d - the highest level for the month since 1987 - according to a report from the American Petroleum Institute.
Greater investment in infrastructure is needed to ensure that rising NGL production in the US can reach international markets. Without it, a glut will form, placing downward pressure on prices and eroding the economics of shale gas drilling.
Continuation of disruption to Iraq underscores how readily observers in the West underestimate factionalism, in its various dimensions, as a force in the Middle East.