Posted June 13, 2013
Wall Street Journal – U.S. Oil Notches Record Growth
In the latest sign that the shale revolution is remaking world energy markets, the WSJ cites BP’s 2012 Statistical Review showing crude production in the U.S. jumped 14 percent last year to 8.9 million barrels a day. (subscription publication).
Pittsburgh Post-Gazette – Pennsylvania to See $202.47 Million in Per-Well Fracking Impact Fees
A new Pennsylvania Public Utility Commission report notes that more than $200 million from hydraulic fracturing impact fees will be distributed to local governments across the state. Bradford County in the state's northeast will collect the most at $7.3 million while Washington is second at $4.7 million. Lycoming and Tioga counties follow with $4.4 million each.
Posted June 12, 2013
Fuel Fix Blog – U.S. Led World in Oil Growth in 2012
According to a new BP report, U.S. oil production growth, the largest in the country’s history, helped keep global crude prices from rising sharply. Shale development had the biggest impact on this increase in oil production.
Washington Times – U.S. Gains Global Competition as Shale Revolution Heats Up
While the U.S. has been “the dominant player in the shale revolution until now,” the newspaper cites new estimates showing that Russia and China have potential to rise in the global market by exploiting their own shale resources.
Posted June 12, 2013
BusinessInsider.com has an article disparaging oil and natural gas sector employment, as well as the industry’s ability to create new jobs:
… let's look at oil and gas mining. The industry really employs very few people. Less than 200K people are in the oil and gas extraction business. … And on a month over month basis, just 500 or so new jobs were created in May. … So while oil and gas is a big exciting story, it’s not directly a big source of new jobs.
Both points to the more than 6,000 people now working in direct industry jobs that were added from April to May of this year, according to the Bureau of Labor Statistics (BLS).
BusinessInsider.com’s piece is fairly shortsighted, failing to acknowledge what nearly every economist acknowledges – that a business sector’s real employment measure includes direct jobs but also supporting and associated jobs.
Posted June 11, 2013
Pittsburgh Business Times – Marcellus Royalties Rising
The newspaper reports on a study by the Allegheny Institute for Public Policy showing that royalty income paid to land and mineral rights owners in Marcellus Shale play has skyrocketed in recent years, from an estimated $10.9 million in 2008 to an estimated $731 million last year.
MSN Money – Meet the State with America’s Strongest Economy
Thanks to the surge in hydraulic fracturing and shale development in North Dakota, the state’s GDP rose 13.4 percent in 2012 over 2011 to lead the U.S. Per capita personal income also has soared, doubling since 2000.
Posted June 10, 2013
Wall Street Journal – Fracturing in California
In an editorial, WSJ comments on a bipartisan vote in the state assembly to defeat a ban on hydraulic fracturing: "...about one-third of the active wells now use this innovative drilling process... A moratorium would throw thousands of Californians out of work."
EIA Today in Energy – Shale Oil and Natural Gas Resources Are Globally Abundant
A new EIA report shows that shale resources in the United States and worldwide represent 10 percent of the world's crude oil and 32 percent of the world's technically recoverable natural gas resources.
Posted June 10, 2013
House legislation requiring a new federal offshore leasing plan that includes areas off South Carolina and Virginia is the best way to create new access to federal oil and natural gas resources sooner rather than later. Later – much later – is likely under the current federal plan, which would keep lease sales from happening until 2017 at the earliest. Because of the time it takes to develop offshore resources, that means actual production wouldn’t occur until 2024 or even 2027.
Creating access to areas that currently are off-limits is critical to U. S. energy security, job creation and economic growth. Access leads to exploration, which results in the oil and natural gas development that’s vital to President Obama’s pledge to increase domestic production under his all-of-the-above energy strategy.
Posted June 7, 2013
Propelled by a massive energy surge, North Dakota’s economy grew 13.4 percent in 2012, according to Bureau of Economic Analysis figures – nearly three times as fast as Texas, the No. 2 state. The oil and natural gas industry is a big economic driver, as well as manufacturing industries.
National Review Online – No More Energy Protectionism
In a guest post, the Heritage Foundation’s Nicolas Loris writes that, “In a free economy, goods and services go to their highest valued use. Natural gas is no different, and it should be treated the same as any other good the U.S. trades around the world.”
Posted June 5, 2013
Ernst & Young has a new study detailing $185.6 billion in total capital spending by oil and natural gas companies last year – the largest in the history of the firm’s oil and natural gas reserves study. Marcela Donadio of Ernst & Young:
The study of U.S. upstream (pre-refinery stage) capital spending by the 50 largest companies (based on 2012 end-of-year oil and natural gas reserve estimates) found a 20 percent increase compared to 2011. Ernst & Young said the increase was largely due to increased tight oil and liquids activity. That refers to development in tight-rock formations, made possible by hydraulic fracturing and horizontal drilling.
“The increased exploration and development spend we’re seeing in this year’s study speaks to the incredible opportunity unfolding in tight oil from shale formations and the high cost of developing these unconventional resources.”
Posted June 5, 2013
The Hill – Fueling the Future
Bill Cooper, president of the Center for Liquefied Natural Gas, talked with The Hill about the future of natural gas exports. “This is not the first time the country has argued protectionism versus exports and that kind of thing,” he said. “Historically, if we look back over it, protectionism tends to lead to economic stagnation.”
Dallas Morning News – U.S. Oil and Natural Gas Investment at 10-year High
An Ernst & Young study released Tuesday found that in 2012 the 50 largest U.S. oil and natural gas companies spent $185.6 billion on domestic exploration and new production. That represented a 20 percent increase over the previous year and the most in the past 10 years.
Posted June 4, 2013
Fox Business – Oil and Natural Gas Industry Readies for Hurricane Season
API’s Rayola Dougher stopped by Fox Business and outlined measures the industry takes to prepare its employees and facilities for the threats posed by hurricanes. “Worker safety is the industry’s top priority,” Dougher said.
CNN Money – U.S. Steps Up Natural Gas Exports
With the Energy Department granting a second liquefied natural gas export license last month, the U.S. might soon see the approval pace quicken on the remaining export applications, CNN reports.