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 A new study out today from Wood Mackenzie shows what would happen if this cost recovery measure was repealed effective January 1, 2014.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:
Posted July 9, 2013
New York Post – Fracking Phobia Fails Yet Again
In a guest post, National Review Online’s Rich Lowry takes issue with a new film’s claims that the EPA is a “tool of the oil and natural gas industry.” It never occurs to anti-fracking crusaders that perhaps the evidence doesn’t back up the anti-fracking hysteria, he writes.
The news magazine highlights the debate over the Renewable Fuel Standard, which will be the subject of an upcoming House hearing. “There will be a push in our committee by some, Republicans and Democrats, to do away with the RFS, saying that it's just completely unnecessary today," said Rep. Lee Terry.
Posted July 8, 2013
Reason - The Top Five Lies About Fracking
Science writer Ronald Bailey highlights five falsehoods about hydraulic fracturing, from flaming faucets to water contamination. “Over 500,000 gas wells are currently operating in the United States,” Bailey writes. “Most of them manage to avoid blowing up houses, poisoning drinking water, making it hard to breathe, causing cancer...”
Fuel Fix Blog – Oil to Flow Through Keystone XL’s Southern Leg This Year
While the northern leg of the pipeline is going on five years waiting on approval from the Obama administration, the southern portion of the project is nearing completion. By the end of the year, the pipeline is expected to carry up to 700,000 barrels of oil per day from Cushing, Okla., to the coast of Texas.
Posted July 4, 2013
Petroleum products are everywhere – from the time your iPhone alarm rings in the morning to the time you turn off the lights at night, oil and natural gas impacts almost every aspect of life. And it’s not just electronics – from toothpaste to medicines, to clothing to the roof over your head, when you stop to think about it, the oil and natural gas industry is an integral part of the American way of life.
Oil and natural gas contribute to our health and well-being through a myriad of medicines, medical supplies and health and safety products. Aspirin is synthesized from petroleum byproducts, and advanced medical devices such as heart valves and artificial limbs are made of plastic. Kevlar®, a lightweight fiber that’s five times stronger than steel helps keep our armed forces safe and our police forces protected – and it all began with oil and natural gas.
Posted July 1, 2013
Energy Outlook - President's Climate Plan Hinges on Natural Gas
President Obama's plan for addressing U.S. greenhouse gas emissions depends heavily on expanded hydraulic fracturing of domestic shale gas resources, writes Geoffrey Styles.
News and Sentinel.com – Educational Program Focuses on Oil and Natural Gas Jobs
In an effort to train more workers for the surging shale industry, Ohio’s Washington State Community College hosted an informational session on opportunities for students and workers with an emphasis on filling new positions locally.
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 Today – Report: 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.”
Posted June 24, 2013
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 Chronicle – Energy 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.”
Posted June 21, 2013
Study: Tier 3 Sulfur Rule Would Do Little to Improve Air Quality - http://bit.ly/19YBiXp
Although the Environmental Protection Agency’s proposed Tier 3 gasoline sulfur rule could cost billions, a new study from ENVIRON International Corporation found that it would do very little to reduce fine particulates and improve air quality, API Director for Regulatory and Scientific Affairs Howard Feldman told reporters yesterday.
EPA Acknowledges Pavillion Study Deficiencies – http://bit.ly/14OceP1
After two years of study in Pavillion, Wyoming, the EPA has yet to demonstrate any evidence of hydraulic fracturing linked to groundwater contamination. This echoes former EPA Administrator Lisa Jackson’s comments from 2011 that “there is no proven case where the fracking process itself has affected water.”
Posted June 20, 2013
Fuel Fix Blog – IEA: U.S. Natural Gas Output to Accelerate Next Year
A new estimate from the International Energy Agency says that 2014-2018 domestic natural gas production will increase thanks to expanded hydraulic fracturing. U.S. shale production increased six-fold to 265 billion cubic meters last year from 45 billion in 2007.
CNBC’s top states for business ranking reflects a reordering because of a U.S. energy surge that “has literally transformed the financial landscape of the central corridor; creating jobs and rising incomes." According to CNBC, this points to the importance of policies that encourage more energy development. "The reality is, California could reap the same shale-oil and shale-gas bounties now benefiting North Dakota. Politicians simply choose not to."
Posted June 19, 2013
Free Enterprise – Energizing Manufacturing
Current North American energy abundance is the result of innovation and private-sector investment, writes FE. “Government policies that restrict development or prevent the market from working effectively may reduce the benefits this energy competitive advantage offers to Americans and to our manufacturing industries.”
Project Syndicate – Frack to the Future
Harvard professor and former Clinton administration economic advisor Jeffrey Frankel argues the environmental benefits of increased natural gas use, noting that “one can virtually prove that shale gas is the major factor behind the fall in US emissions.”