Energy Tomorrow Blog
Posted October 24, 2019
As the New York Times launches another attack on congressionally mandated support for U.S. offshore development in the Gulf of Mexico, some facts are in order:
The Deep Water Royalty Relief Act enacted by Congress in 1995 was designed to help spur deep water offshore production as the U.S. faced increasing dependence on imported oil – and the courts found that its intent is clear. Background on the act here and here.
The false claim that there is a royalty relief “loophole,” asserted by the Times and others, omits the fact that between 2000 and 2018 natural gas and oil companies paid more than $122 billion to the government in high bids, royalties and rents. Add to that tens of billions the industry spent to develop those leases, creating jobs and boosting local and regional economies – an integral part of industry’s $1.3 trillion overall support for the U.S. economy.
Today, U.S. Gulf production is setting records, averaging 1.8 million barrels per day (b/d) in 2018 and expected by the government to reach 1.9 million b/d this year and 2 million b/d in 2020. This production generates millions in revenue-sharing dollars for coastal states, as well as the Land and Water Conservation Fund, which supports state conservation and outdoor recreation projects all across the country.
Posted December 2, 2014
Maryland Gov. Martin O’Malley’s recent announcement – that he plans to lift the state’s three-year moratorium on hydraulic fracturing, possibly clearing the way for future natural gas development – is potentially good news for the state, its citizens and America’s broader energy picture.
A new report by the state’s Department of the Environment and the Department of Natural Resources details some of the possible benefits:Garrett County in western Maryland could gain as many as 2,425 new jobs while realizing $3.6 million in tax revenues and $13.5 million in severance tax revenues.Neighboring Allegany County could see as many as 908 new jobs, $1.8 million in tax revenues and $2.3 million in severance tax revenues over 10 years. “Royalty payments to the owners and lessors of mineral rights could provide significant income,” the report says.
Significantly, the department concludes what a number of other states have found and are demonstrating – that advanced hydraulic fracturing and horizontal drilling to develop natural gas and oil from shale and other tight-rock formations can be conducted safely and efficiently.
Posted August 25, 2014
Because she relies so much on her lease checks from Greka Energy, she's concerned about Measure P and how it could affect her income. The voter-driven initiative to ban oil extraction methods of hydraulic fracturing, better known as fracking, cyclic steaming and well acidization in Santa Barbara County is on the November ballot.
Jane Van Ryan
Posted April 13, 2010
Jane Van Ryan
Posted October 5, 2009