Posted June 4, 2015
After five years and millions of taxpayer dollars, EPA says what we in industry and others have said for some time: Safe hydraulic fracturing doesn’t threaten our drinking water. The salient quote from EPA’s draft report about fracking and associated operational components:
“We did not find evidence that these mechanisms have led to widespread, systemic impacts on drinking water resources in the United States.”
EPA’s findings discredit scaremongering used by fracking opponents and should help focus attention where industry is and has been focused – on continuous improvements in operational skill, guided by a set of rigorous best practices, and on technological advances.
EPA’s findings also effectively endorse the strong environmental stewardship that is being exercised by state regulators, who have been busy while EPA studied.
Posted June 4, 2015
CNBC – The U.S. Environmental Protection Agency said in a Thursday report that it found no evidence fracking has a “widespread” impact on drinking water.
The EPA report concluded that there are above and below ground mechanisms by which fracking have the potential to impact drinking water resources, but that the number of identified cases were “small” compared to the number of fracking wells.
“We did not find evidence that these mechanisms [of potentially affecting water] have led to widespread, systemic impacts on drinking water resources in the United States,” the report said.
Posted June 3, 2015
The Hill: House Republicans have found reasons to agree with some parts of the Obama administration’s energy infrastructure proposal.
GOP leaders in the House Energy and Commerce Committee told Energy Secretary Ernest Moniz that they are largely in agreement on the need to improve pipelines, electric transmission lines, energy storage and other pieces of infrastructure.
Moniz testified at the hearing to promote the Quadrennial Energy Review, which the administration released in April to call for comprehensive infrastructure improvements worth billions of dollars.
“Many people are even asking — not surprisingly — is there enough common ground between our efforts and the Obama administration to enact meaningful energy legislation,” Rep. Ed Whitfield (R-Ky.), chairman of the energy and power subcommittee, said at the Tuesday hearing.
Posted June 2, 2015
With EPA last week proposing ethanol-use requirements for 2014, 2015 and 2016 under the Renewable Fuel Standard (RFS), the ethanol industry no doubt will keep lobbying to foist increasing amounts of higher-ethanol blend fuels like E15 and E85 on the motoring public. This, despite studies that have shown E15 can harm engines and fuel systems in vehicles that weren’t designed to use it – potentially voiding manufacturers’ warranties – and historically small consumer demand for E85.
A subset of the argument for increased use of higher-ethanol blend fuels is the dismissing of concern that E15 also could damage existing service station infrastructure, including storage tanks, fuel lines and dispensers. Though service station owners and operators indicate otherwise, ethanol supporters say that a new National Renewable Energy Laborary (NREL) report – commissioned by the Renewable Fuels Association (RFA), a big ethanol advocate – found that E15 is compatible with existing equipment. It’s simply not true, and the report has some challenges. Let’s look at a few.
Posted May 29, 2015
With EPA already embarrassingly late in setting requirements for ethanol in the fuel supply for 2014 (due 18 months ago) and 2015 (due six months ago), the agency finally has proposals for those years and 2016 that would continue to drive ethanol use – though not at levels dictated by the Renewable Fuel Standard (RFS).
Top EPA official Janet McCabe called the proposals “ambitious, but responsible.” We’ll agree on the ambitious part – in that it takes a whole lot of something to thread the needle between marketplace realities and the flawed RFS – difficult for the nimblest of bureaucracies, much less a regulatory colossus like EPA.
Unfortunately, EPA comes up short, particularly for 2016. An RFS program that long ago went awry remains lost in the tall weeds of process over substance.
Posted May 28, 2015
If implemented, the stricter ozone standards could be the costliest regulation ever, potentially reducing U.S. GDP by $270 billion per year and $3.4 trillion from 2017 to 2040, according to a study by NERA Economic Consulting for the National Association of Manufacturers. The U.S. could see 2.9 million fewer jobs or job equivalents per year on average through 2040.
Yeah, that’s big.
Certainly, for those kinds of impacts Americans would expect them to be justified. But EPA’s proposal is starkly lacking in terms of the science and public health.
Posted May 27, 2015
With national ozone levels falling, some activists argue for stricter federal standards the best way they can – by pointing to the relatively few areas in the United States where ozone levels remain above the current standard of 75 parts per billion (ppb).
Yet, think about that. If an urban area like Los Angeles or Houston currently is out of attainment with the standard set at 75 ppb, how will lowering the national standard to 65 or 60 ppb – which EPA is considering – make a difference in those and other non-compliant areas? Good question.
The fact remains that the current standards are working. EPA data shows ozone levels declined 18 percent between 2008 and 2013.
Posted May 27, 2015
Wall Street Journal commentary (Engler and McGarvey): America’s business and labor leaders agree: President Obama and Congress can do more to modernize the permitting process for infrastructure projects—airports, factories, power plants and pipelines—which at the moment is burdensome, slow and inconsistent.
Gaining approval to build a new bridge or factory typically involves review by multiple federal agencies—such as the Environmental Protection Agency, the U.S. Forest Service, the Interior Department, the U.S. Army Corps of Engineers and the Bureau of Land Management—with overlapping jurisdictions and no real deadlines. Often, no single federal entity is responsible for managing the process. Even after a project is granted permits, lawsuits can hold things up for years—or, worse, halt a half-completed construction project.
Posted May 21, 2015
Fort Worth Star-Telegram (Weinstein): Thanks to what’s sometimes called the “shale revolution,” America has re-emerged as an energy superpower.
Even with prices 40 percent lower than a year ago, we remain the world’s No. 1 producer of crude oil and other liquid hydrocarbons. Imports of oil have dropped from 60 percent of consumption to about 35 percent just in the past five years. We’re also the world’s largest producer of natural gas.
Both our oil and natural gas output would be even higher if not for regulatory and infrastructure constraints.
Posted April 29, 2015
Rigzone: For every $1 that public pension funds allocated to oil and gas assets in 2005, investors saw a return of 130 percent in 2013, about double their returns on other investments, according to a new study from the American Petroleum Institute and Sonecon LLC.
“The lesson, frankly, from this analysis is that pension plans would be in better shape if they increased the share they invest in oil and gas,” said Robert Shapiro, a co-author of the report, said during a conference call with reporters.
Shapiro found that the funds invested an average of 4 percent of their assets in oil and gas, which yielded 8 percent of the returns. The study reviewed the returns of the two largest funds — those owned by public school employees and state workers in every case — for each of 17 states, which included California, Florida, New Mexico and West Virginia for the eight-year period from 2005 to 2013.
“All of these pension plans have been under serious economic stress since 2008. Thirty-five states have enacted changes that will change benefits,” Shaipro said, adding that when the plans’ returns are higher, there is less pressure on them to reduce benefits.