The People of America's Oil and Natural Gas Indusry

Energy Today - February 25, 2011

Rayola Dougher

Rayola Dougher
Posted February 25, 2011

Oil & Gas Journal: Study lists Alaska Arctic OCS development's potential benefits: Development of resources in the Chukchi and Beaufort seas off Alaska's Arctic coast would create an average 54,700 jobs/year nationwide with a $145 billion total payroll and generate $193 billion in federal, state, and local revenue over 50 years, according to a study by Northern Economics Inc., Alaska's largest private economic consulting firm, and the University of Alaska at Anchorage's Institute of Social and Economic Research. Commercial production of Arctic Alaska offshore oil and gas resources would generate government revenue estimated at $97 billion (in 2010 dollars) in the Beaufort Sea and $96 billion in the Chukchi Sea over 50 years, said the Feb. 18 study, which was commissioned by Shell Exploration & Production Co. Of the $193 billion of total revenue, the federal government would receive $167 billion, Alaska's state government would get $15 billion, local governments in the state would get $4 billion, and other state governments would receive $6.5 billion, it said. It estimated about 30,100 jobs would be generated from Beaufort Sea Outer Continental Shelf development and 24,600 jobs would come from Chukchi Sea OCS development. Production could reach almost 10 billion bbl of oil and 15 tcf of natural gas, the study said. The Wall Street Journal: Pressures Mount to Resume Drilling: Interior Secretary Ken Salazar plans to meet with oil industry executives in Houston Friday to assess the industry's readiness to handle a major offshore oil spill, amid growing pressure from congressional Republicans and a federal judge to resume deep-water drilling in the Gulf of Mexico. Mr. Salazar is expected to meet with representatives of an industry-led consortium, Marine Well Containment Co., and Helix Energy Solutions Group Inc., a company that aided BP PLC with BP's response to last year's Gulf of Mexico oil spill. The Obama administration has said the oil industry must demonstrate it can quickly contain a large offshore spill before it will allow companies to resume drilling in waters deeper than 500 feet. The recent jump in world oil prices and U.S. gasoline prices following unrest in Libya has spurred renewed calls from many Republicans and Gulf Coast Democrats in Congress to allow more domestic production. One House committee is scheduled to hold hearings on drilling policy next month. Crude oil futures pulled back late Thursday after hitting the highest levels in more than 2 1/2 years on fears that the chaos in Libya would disrupt supplies.

Oil & Gas Journal: EPA revamps boiler rules to cut costs: The US Environmental Protection Agency issued revised Clean Air Act standards for boilers and certain incinerators, saying it cut estimated costs by about 50% from the rules that it proposed last year. EPA estimates its final rules lower the cost of pollution control installation and maintenance by about $1.8 billion/year less than its original proposal. The rules cover toxic emissions from some 13,800 large industrial boilers, including refineries and chemical plants. The new boiler rule, known as the maximum achievable control technology (MACT) rule, sets standards to reduce air emissions of mercury, organic air toxics, and dioxins (OGJ Online, Feb. 4, 2011). Howard Feldman, American Petroleum Institute director of science and regulatory policy, said he was reviewing the rule. "API understands that EPA has finalized work practices for most gas-fired boilers and process heaters," Feldman said. "We continue to believe that this is the appropriate control measure for all low-emitting gas-fired units. API is committed to work with the agency during its reconsideration period."

The Bellingham Herald: U.S. must build on its oil ties with Canada: Perhaps no two countries have a stronger - and more special - partnership than do the United States and Canada. It is the world's largest trading relationship, and Canada plays a tremendous role in our nation's economic and energy security. Canada is already our country's largest supplier of imported oil. As Americans watch the unsettling events unfolding in Egypt and elsewhere in the Middle East, it should be comforting to note that most of the oil we import comes from our friendly and reliable next-door neighbor. And that neighbor is poised to provide even more of the energy America needs as it develops its vast oil sands resources. Canadian oil sands can support significant U.S. economic growth and job creation, at a time when both are needed desperately. That can only happen, however, if we have adequate means to transport that oil to refineries in the United States.

Additional Resources:

Star Tribune: Report commissioned by Shell highlights benefits of Arctic offshore drilling: 54,700 new jobs

Ventura County Star: Murdock: We should be drilling for more oil in the U.S.

The Hill: OVERNIGHT ENERGY: Interior Secretary heads for hot seat