Energy Tomorrow Blog
Posted November 22, 2013
Today we offer three charts – all associated with the latest congressional bid to raise revenue for the federal government by hiking taxes on oil and natural gas companies.
U.S. Sen. Max Baucus has proposed delaying industry’s ability to write off intangible drilling costs (IDCs) and doing away with the “last-in, last-out” accounting method (LIFO) used by a number of energy companies. More on LIFO below. Here are three charts from Wood Mackenzie’s recent study on the impacts of delaying IDC deductions.
Posted November 15, 2013
Huffington Post (Andrew Browning): In the past few years, the use of the technology of hydraulic fracturing to produce oil and natural gas has dominated national energy policy discussions. Much of the discourse has been fraught with fear, misunderstanding and, in some cases, misinformation. However, in some cases, dispute is slowly being replaced by reasoned debate, acceptance and increasingly responsible regulation and use of this technology.
The reason for the change of tone is rather simple, the increased use of this technology has allowed our nation to produce tremendous amounts of natural gas that is cleaning our environment and reinvigorating our communities and our national economy. At the same time, as more individuals gain experience with the process they are seeing that the worst case scenario's outlined by the most polarizing voices in this discussion have largely failed to materialize.
Of course as with any political discussion, some groups will continue to advance discussion points that fit their view or brings more donations to their particular cause. However as more credible voices and scientific data are unveiled, it's becoming easier to understand that the benefits of this technology far are significant and that the choice that is currently being offered to the public - economic development vs. maintaining a healthy environment - is a false one.
Posted November 13, 2013
Bloomberg: U.S. crude oil production exceeded imports in October for the first month since February 1995, the U.S. Energy Information Administration said.
Output averaged 7.74 million barrels a day, the Energy Department’s statistical unit said in its monthly Short-Term Energy Outlook. Crude oil net imports were 7.57 million, down from 7.92 million the previous month.
Horizontal drilling and hydraulic fracturing, or fracking, have unlocked supplies in shale formations in North Dakota, Texas and other states. West Texas Intermediate, the U.S. crude benchmark, has dropped to below $95 from above $110 in September as domestic output reached a 24-year high.
Posted October 29, 2013
Here’s what Americans are thinking about tax reform discussions that potentially could include hiking taxes on U.S. oil and natural gas companies, according to a new Harris Interactive poll
Posted October 28, 2013
This summer we posted on Anadarko’s Lucius spar, the 605-foot-long steel tube that would support the company’s newest Gulf of Mexico production platform. Now Anadarko has released three videos of operations to tow the 23,000-ton spar 340 miles southeast of Corpus Christi, Texas, where it was erected in more than 7,000 feet of water and will be fitted with its topsides – the platform the company expects will begin producing oil the second half of next year. This is must-see video.
Posted August 29, 2013
With the proviso that we’re still evaluating proposed new federal standards for offshore oil and natural gas production systems announced last week, the incorporation of a number of industry standards in the proposal is encouraging.
The 149-page proposal from the Bureau of Safety and Environmental Enforcement (BSEE) would update standards that haven’t been changed much since they were first published in 1988.
Posted August 12, 2013
EIA Today in Energy – Production of Fossil Fuels from Federal, Indian Lands Fell in 2012
Sales of fossil fuels from production on federal and Indian lands in 2012 dropped 4 percent from 2011, according to Department of the Interior data. This decline is largely due to declines in offshore oil and natural gas production.
National Journal – My Week in Oil Boom Country
NJ’s Amy Harder got a first-hand look at the surging shale development in North Dakota’s Bakken shale play. Sens. John Hoeven and Heidi Heitkamp, both representing N.D., and Interior Secretary Sally Jewell also toured facilities around Williston.
Posted July 22, 2013
Think of Anadarko Petroleum’s Lucius spar, the steel tube that will support the company’s newest Gulf of Mexico production platform, as a soda can floating in the ocean. A 23,000-ton soda can.
Company officials showed off the spar earlier this month at Kiewit Offshore Service’s fabrication yard in Ingleside, Texas, across the bay from Corpus Christi.
Posted July 18, 2013
The newspaper reports land on the air force base located on the central California coast could be leased for offshore “slant drilling.” An Air Force spokesman tells the Times: “Initial information obtained by the Air Force indicates there may be potential for new technology slant drilling capable of targeting oil deposits off Vandenberg Air Force Base’s coastline from locations with minimal or mitigable mission/environmental impacts.”
Posted July 16, 2013
Carpe Diem – North Dakota Sets Another Oil Production Record
Blogger Mark Perry comments on the latest oil production figures from North Dakota: 810,314 barrels per day in May – the 10th month in a row the state as pumped more than 700,000 bpd. Production increased almost 26 percent over May 2012, thanks to booming production from the Bakken shale.