The People of America's Oil and Natural Gas Indusry

Energy Today - June 8, 2011

Rayola Dougher

Rayola Dougher
Posted June 8, 2011

WSJ: Washington Wire: Chamber's Donahue to Obama: Expand Oil Drilling: U.S. Chamber of Commerce President Thomas Donohue is putting new pressure on the Obama administration to expand domestic production of oil. In a letter Tuesday to President Barack Obama, Mr. Donohue called on the administration to speed up issuing new offshore drilling permits, offer more offshore areas for oil and gas exploration, open new areas for drilling in the Western U.S., and approve permits for the Keystone XL pipeline proposed to bring oil from Canadian tar sands to the U.S. That project has been held up in part by opposition from the Environmental Protection Agency. "You have appropriately called for our country to responsibly use more of our own resources but, thus far, the requisite actions from the responsible departments in your administration have not been forthcoming," Mr. Donohue wrote. Corpus Christi Caller Times: Blake Farenthold: Domestic Solutions for Lower Gas Prices: The White House and its supporters in Congress demand tax increases for oil and gas companies. This makes no sense. When gasoline is at the highest price in recent memory, why would we raise taxes? Adding new taxes will raise the cost of gasoline. Adding more oil and gas taxes would also eliminate good paying American jobs, slow domestic production and force American families to pay higher prices at the pump. Oil and gas companies should be encouraged to explore and produce as much oil and gas as possible. These companies pay a lot of taxes. According to a Government Oversight and Reform Committee report, for every $1 million of capital expenditure that an oil company invests, the federal government collects $1.1 million in tax revenue. The call to increase taxes on oil and gas companies is shortsighted and will hurt our economic recovery. Solving America's energy crisis requires an all-of-the-above energy policy...Unconventional shale reserves, and technologies like hydraulic fracking, are game changers that have immense potential for America.

E&P: Fracking Ban Costs New York Billions In Lost Economic Output, Tax Revenue: The natural gas boom that America is experiencing is due largely to advances in hydraulic fracturing and horizontal drilling techniques which free gas trapped in densely packed shale formations previously thought to be uneconomic. However, in many states, these techniques have become a major focus of environmental concern. This concern has led to a ban on the use of hydraulic fracturing in New York State--but is this moratorium on shale gas drilling beneficial for New Yorkers? A new Manhattan Institute Center for Energy Policy and the Environment report, authored by University of Wyoming professor Timothy Considine, analyzes the economic and environmental impacts of shale gas drilling in the Marcellus Shale formation in Pennsylvania (the formation spans several states including, New York). The report, "The Economic Opportunities of Shale Energy Development", which was released at an event in New York City on Wednesday, June 7, 2011, finds that the net economic benefits of shale drilling in the Marcellus are considerably positive while the environmental impact of the typical Marcellus well is relatively low. Pennsylvania's experience suggests that New York, through its ban, is needlessly stifling job growth, investment, and tax revenue in a part of the state that can scarcely afford it.

Additional Resources:

Yahoo Finance: ExxonMobil Announces Three Discoveries in Deepwater Gulf of Mexico

CNBC's Squawk on the Street: Capping Gas Prices a Good Idea?

The Globe and Mail: Facts Take a Hit in Debate Over Keystone Pipeline