Posted June 9, 2011
The Wall Street Journal: Exxon Find Rekindles Domestic Oil Hunt: Exxon Mobil Corp.'s massive new discovery of oil and natural gas in the Gulf of Mexico, which demonstrates there are still enormous amounts of untapped energy sources in the U.S., is rekindling enthusiasm for offshore exploration after months of delays and permitting difficulties... Pro-development advocates in Washington, including Republicans and the oil lobby, seized on Wednesday's announcement to press the federal government to reduce regulatory requirements in exploring for oil in the Gulf of Mexico, the source of about 28% of all U.S. oil produced. "We have vast oil and natural-gas reserves in this country. If given the opportunity, we will find those as an industry and be able to bring those to the marketplace," said Jack Gerard, president of the American Petroleum Institute, the oil industry main lobby group... Exxon said what it had found contained the oil and gas equivalent of an estimated 700 million barrels. A company spokesman said Exxon would build the necessary infrastructure to pump the oil "as rapidly as possible." Still, it usually takes years for an oil discovery to be converted into new oil for refineries to turn into gasoline. Exxon's new discovery won't impact gas prices, still at historically high levels, for years. My San Antonio: Oil Firms Spend to Get at Gulf Discoveries: Major oil discoveries and a multibillion-dollar production investment in the Gulf of Mexico, announced by two oil giants Wednesday, are breathing life into the region after a months-long moratorium stalled offshore drilling..."We have vast oil and natural gas reserves in this country, and to our very point, if given the opportunity, we will find those as an industry and be able to bring those to the marketplace," said Jack Gerard, president of the American Petroleum Institute. "The industry is anxious to get back to work. We just need the government to let us get back to work." The projects announced Wednesday signal that major oil companies see a future in the Gulf despite regulatory uncertainty still hovering over the region...Doc Hastings, R-Wash., chairman of the House Natural Resources Committee, said the discoveries should encourage federal regulators to approve more permits for offshore drilling. "Today's oil and natural gas discovery in the Gulf of Mexico is a significant step forward for American job creation and energy production," Hastings said in a release. "America has abundant oil and natural gas reserves, we simply need to allow the hardworking men and women in the energy industry to do their job."
Des Moines Register: Oil Industry Means Tax Revenue and Jobs: Claiming that developing more of our resources would provide only "a handful" of jobs demonstrates a profound ignorance of our industry, which supports some 9.2 million jobs across the country, including almost 59,000 in Iowa, as reported in a recent analysis by PricewaterhouseCoopers. Increased production would also increase revenue to the federal government, more than would have recent legislation to deny a few of the major oil companies provisions available to other industries. Our industry contributes an average of $87 million a day to the federal government.
Victoria Advocate: Eagle Ford Shale Drilling to Have Impact on Crossroads for Years to Come: The Crossroads' Eagle Ford Shale drilling projects have already had an impact on the region, but the effects will continue far into the future, said an oil company representative. "Over the last several years, shale gas really hit the U.S. markets by storm," said J.D. "Joey" Hall, vice president of Pioneer Natural Resources' Eagle Ford Asset Team. "We, and other operators, have literally drilled hundreds of wells in Eagle Ford Shale."... Although Victoria County sits outside the Eagle Ford Shale region, it, too, will feel the impacts. Victoria already has seen 124 new Pioneer Natural Resources jobs spring up in areas such as pumping services, maintenance and support, and that number should grow to 205 positions by the year's end. Pawnee, Cuero and Yoakum have seen 117 new jobs with Pioneer open since drilling began, he said. Hall quoted a study by the University of Texas at San Antonio that showed Eagle Ford Shale production tripled between 2009 and 2010. He went on to say that, by 2020, the drilling will have created 68,000 full-time jobs, ringing in at about $3.2 billion in salaries. "This is definitely a needle-mover in South Texas," he said.
ABOUT THE AUTHOR
Rayola Dougher is senior economist at The American Petroleum Institute (API), where she analyzes information, manages projects and develops briefing materials on energy markets and oil industry policy issues. She is the author or co-author of economic research studies covering a diverse range of topics including crude oil and petroleum product markets, gasoline taxes, energy conservation and competition in retail markets. In addition to testifying before federal and state legislators, she has participated in numerous newspaper, radio and television interviews on a wide range of issues affecting the oil industry, including crude oil and gasoline prices, industry taxes and earnings, exploration and production, and refining and marketing topics.
Prior to joining API, Rayola worked at the Institute for Energy Analysis where her research focused on carbon dioxide related issues and international energy demand and supply forecasts. Rayola holds a Masters degree in Economic Development and East Asian studies from the American University and a degree in History and Political Science from the State University of New York at Brockport.