The People of America's Oil and Natural Gas Indusry

Energy Today - January 26, 2011

Rayola Dougher

Rayola Dougher
Posted January 26, 2011

Industry Week: Process Industries Hope for Change in Obama's Regulatory Strategy: President Obama's executive order last week to review regulations that could place unnecessary burdens on businesses struck a chord with manufacturers, particularly those in energy-intensive industries. Manufacturers in many process industries have criticized the regulatory environment in the United States as a competitive disadvantage when compared with the less-stringent requirements in developing nations, such as China. "We're hoping this will be a look at all regulations that are negatively affecting our competitiveness, including regulations that have been finalized or initiated on this administration's watch," says American Iron and Steel Institute President Thomas Gibson. API Analysis: Offshore Permitting Delays Threaten U.S. Jobs: The American Petroleum Institute (API) released a study this morning on the negative impact the delays in offshore drilling in the Gulf will continue to have on the US economy and energy security. The analysis by Wood Mackanezie supports what the National Association of Manufacturers has pointed out in the past -- delays in permitting have had and will continue to have detrimental impact on the U.S. economy and domestic energy. According to the study, an estimated 125,000 jobs can be lost by 2015 and approximately 680,000 barrels of oil a day could be at risk by 2019. The delay on permitting continues even though the moratorium on offshore drilling was lifted in November of last year. This stems from the fact that companies are now faced with new procedures and guidelines in order to secure permits to resume their activities in the Gulf. These requirements mean companies can no longer rely on the old applications which they submitted for a permit. They now have to go back to the drawing board, re-start their application process and go through the steps of applying for a permit all over again.

Fox News: Obama Says Clean Energy Comes at a the Oil Industry: Creating a cleaner environment has its costs and President Obama said in his State of the Union speech Tuesday that he hopes oil companies can help foot the bill. In advancing his recurring theme of the need for American innovation, the president will push for the expansion of the use of biofuels. "We need to get behind this innovation," the president said. "And to help pay for it, I'm asking Congress to eliminate the billions in taxpayer dollars we currently give to oil companies. I don't know if you've noticed, but they're doing just fine on their own," he quipped. American Petroleum Institute President and CEO Jack Gerard has already weighed in on the State of the Union speech, saying the president's remarks were a missed opportunity. "The president focused on job growth through federal spending, but was silent on one of the best ways to create jobs: allow more energy development. Natural gas and renewables are important components of our energy mix, but we will need our nation's vast oil resources for decades to come."

MSNBC: WVU study: Marcellus drilling a boon to economy: MORGANTOWN, W.Va. -- A new West Virginia University study for the gas industry says economic activity linked to drilling in the Marcellus shale field created 7,600 jobs and almost $298 million in wages and benefits in the state in 2009. The report by WVU's Bureau of Business and Economic Research, done for the West Virginia Oil and Natural Gas Association, was released Tuesday in Charleston. It says gas industry employment jumped 34 percent between 2001 and 2009, mainly because of Marcellus drilling, but notes those 7,600 jobs accounted for only 1.5 of the state's total employment. Marcellus drilling also contributed some $2.3 billion in business volume to the overall economy in 2009, the report said, and some $14.5 million in sales, income and business franchise taxes.

Additional Resources:

Knowledge Problem: The US As a Natural Gas Exporter?

Say Anything Blog: Obama's State of the Union Call for Oil Tax Hikes Ought to Send a Chill Down the Spines of North Dakotans

Bloomberg: Century Exploration Sues US Over Drilling Ban Changes

Marine Log: Offshore permitting delays threaten 125,000 Gulf jobs