The People of America's Oil and Natural Gas Indusry

Energy Tomorrow Blog

energy-101  jobs  jobs-and-economy  security-and-access  access  taxes 

Mary Leshper

Mary Schaper
Posted July 11, 2013

From time to time, a few politicians get the not-so-bright idea to try to repeal the tax deduction for intangible drilling cost (IDCs). A new study out today from Wood Mackenzie shows what would happen if this cost recovery measure was repealed effective January 1, 2014.

During a conference call with reporters, API’s director of tax and accounting policy Stephen Comstock noted that IDC expenses including wages, fuel, and hauling costs typically represent 70 to 90 percent of the cost of a completed well. Comstock:

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energy-101  shale  keystone-xl  hydraulic-fracturing  oil34  oil-sands  pipeline  jobs-and-economy  bakken  security-and-access  eagle-ford 

Mary Leshper

Mary Schaper
Posted June 25, 2013

Wall Street Journal - Texas' Next Big Oil Rush

Refineries in Texas are seeing a much-needed boost as pipelines begin to carry landlocked crude oil from U.S. shale plays to the Gulf Coast. This increase in domestic crude oil is due to increased hydraulic fracturing and shale development across the country. (Subscription publication)

USA TodayReport: Oil Sands  No More Corrosive Than Average Crude

A new report from the National Research Council found “no evidence … that Alberta’s pipeline contents are more corrosive than average crude oil.” 

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energy-101  security-and-access  eia34  natural-gas 

Mark Green

Mark Green
Posted June 24, 2013

More from last week’s energy conference hosted by the U.S. Energy Information Administration ...

The Big Takeaway: Analysts, statisticians, academics, producers – the U.S. Energy secretary – all acknowledge the unfolding of a significant, American revolution in oil and natural gas production, which is reflected in EIA’s chart showing decreasing U.S. dependence on imported liquids:

US Energy Dependence

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e1534  economy  gasoline  ethanol  hydraulic-fracturing  marcellus-shale  security-and-access  renewable-fuel-standard  revenue  utica 

Mary Leshper

Mary Schaper
Posted June 24, 2013

AP - Boost For Cars or Bust? 

AP reports on the debate surrounding the Renewable Fuel Standard and E15 gasoline after a recent ruling by the Supreme Court. "The ever increasing ethanol mandate has become unsustainable, causing a looming crisis for gasoline consumers," API's Bob Greco said. "We're at the point where refiners are being pressured to put unsafe levels of ethanol in gasoline, which could damage vehicles, harm consumers and wreak havoc on our economy."

Houston ChronicleEnergy Surge Spreads Its Wealth Around City

Houston is arguably the center of American energy. With the surge in domestic energy, the city’s business sector – and revenues – has grown over the last few years. The Chronicle highlights the “vibrant metropolitan area.”

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energy-101  security-and-access  jobs  keystone-xl  oil34  oil-sands 

Mark Green

Mark Green
Posted June 21, 2013

U.S. Sen. Tim Kaine of Virginia, explaining in a Washington Post op-ed why a self-identified “pro-pipeline senator” opposes the Keystone XL pipeline:

As a former mayor of Richmond, a city with a gas utility, I think it makes no sense to be anti-pipeline. But I oppose the Keystone XL project. Although the president’s decision is technically over whether to allow a pipeline to deliver oil from Alberta to the coast of the Gulf of Mexico, the real issue isn’t the pipeline. It’s the wisdom of using tar sands oil. … By most accounts, oil from tar sands is 15 to 20 percent dirtier than conventional petroleum, and the process of extracting and refining it is more difficult and resource-intensive. With so many cleaner alternatives, there is no reason to embrace the use of a dirtier fuel source. Approving the pipeline would send a clear signal to the markets to expand the development of tar sands oil. Such an expansion would hurt our nation’s work to reduce carbon emissions. We have to make energy cleaner tomorrow than it is today. That’s why the president should block Keystone. … Tar sands oil is the opposite of an innovative, make-it-cleaner approach. It represents a major backslide.

Sen. Kaine is right on a number of energy issues – supporting more offshore drilling for oil and natural gas as well as more natural gas development from hydraulic fracturing – but on the Keystone XL he’s just wrong. Let’s take a closer look.

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energy-101  security-and-access  access  energy-information-administration 

Mark Green

Mark Green
Posted June 18, 2013

Great question during the U.S. Energy Information Administration’s annual energy conference this week – paraphrasing: Given the technologies, the innovation and risk-taking that mark today’s oil and natural gas industry, what‘s the ceiling for oil and gas development over the next few decades? The U.S. Geological Survey’s Donald Gautier took a crack at it:

“Every time I look at world oil or gas resources, I start adding things up, and I end up with enormous numbers. It just seems like an unavoidable fact, and the issue is about human activities and the contraptions they’re using for getting this out. There is certainly no shortage of molecules out there.”

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