Biden administration orders US government agencies to stop financing “carbon intensive” projects abroad. Will be interesting to see what this means. So if an African village wants to switch from burning wood or cow dung for cooking, we cannot finance a natural gas pipeline to the village?
Thanks for posting Dept/Interior report on federal leasing … quick read, only 14 pages plus footnotes. Described as “high level blueprint” for modernizing and reforming federal O&G leasing. Not very impressive, relative to the fanfare and President Biden’s overturned executive order.
Not surprisingly, not one single word acknowledging that made-in-America oil & gas is beneficial for America. Troubling that the Dept of the Interior relies so heavily on GAO and OIG, both agencies employ the worst kind of bureaucrats. Ideally, a “best practices” plan would be devised by a leading consulting firm, not by bureaucrats & politicians. The stockpiling of federal permits is deemed speculation (p5), with no recognition that operators investing billions in federal acreage needed to stockpile permits before the Biden administration could shut down future permits.
The writers paint “speculators” as villains, seems to smear many honest, hardworking landmen & others who package leases and sell them to operators.
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There is a hearing January 14 to discuss how to allocate the money for plugging abandoned wells in the infrastructure bill. Apparently it is federal lands only? Should be of help in New Mexico.
Biden administration scrapping plans to expand Alaska drilling, meaning further declines in Alaskan production, most likely. Someone needs to tell them that supply side constraints are not the answer.
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Since Build Back Better is not going anywhere soon, expect the administration to focus on more regulatory roadblocks to oil and gas development this year. Most of those in 2021 were focused on reversing things Trump had done and reinstating things Obama had done. To summarize (partially) last year’s regulatory moves which had impacts on oil and gas development:
- Expansion of National Monuments acreage, especially in Utah;
- Reversing Trump changes to revise oil and gas royalty royalty payment rules;
- Reversed Trump changes to migratory bird act, which was being used to go after operators if birds died in open pits;
- New EPA plan to emphasize climate and environmental justice;
- Reinstating Obama’s controversial changes to the Waters of the United States (WOTUS) definition;
- Rescinding changes by Trump to the Endangered Species Act.
While there may be merit to some rollback of Trump’s changes, just blindly rolling back all Trump changes without any consideration of the overall chilling effect on oil and gas investment, sends signals that are contributing to the slow and cautious rebound in production here in the U.S. As a result, we get high prices and the opportunity to go and grovel before OPEC to increase production. While there are other, larger, factors, such as markets asking for no repeat of the poor returns for oil and gas investments from 2010-2020, and the ESG/Divestment movement redlining operators and reducing their options for finding capital, reinstating the Obama regulatory regime in all respects is not a path to growing oil and gas production in the U.S.
Wayne: There are those people that drool over themselves when they hear the name Obama/Biden that they don’t THINK. For those of us that own hydrocarbons, our time frame is shortening to own them as a financial tool. Time to let those that think hydrocarbons hold a place in the future to let them go to those that believe in the future. No different than any other financial opportunity.
Todd, not sure what you mean here.
Wade
Some research suggests the planet is not warming at all.
Even though this article is dated it sure points out some flaws in predicting climate.
Dated? This article is 30 years old!
The definition of chutzpah? Ten Senators from the Northeast are urging the DOE to “review” LNG exports because of high gas prices in the northeast. I am sure it has nothing to do with their state’s policies in making new pipelines almost impossible, outright drilling bans, and otherwise shooting themselves in the foot when a gas resource as massive as the Marcellus is next door.
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Here is the link posted by another member on this site to file public comments about the proposed SEC and FERC regulations that would layer difficult greenhouse gas requirements on public companies (read oil and gas producers) and in getting pipeline permits. If you are so inclined, please post comments.
https://www.mineralrightsforum.com/t/your-public-comment-is-desperately-needed/65629
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Today is the last day for people to comment so please don’t be shy and voice your opinion!
Here is the latest Ted Talk video from Scott Tinker. It is terrific and should be required viewing for any policymaker before they do something else senseless on energy policy.
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Biden administration wants to to give more authority back to states and tribes to be able to block pipelines and other energy projects under the Clean Water Act.
Example 47 of how not to increase production and lower prices
Hart Energy opinion piece about Pres. Biden’s tough talk with the Saudis and OPEC +. I’m not sure why the administration is surprised that OPEC retaliated against the releases from the Strategic Petroleum Reserve. So we can try to manipulate prices but they cannot?
The bigger concern is whether the long effects will be to drive the Saudis into Russia’s camp or whether some event happens that creates a sudden supply disruption and we lack the reserves to stabilize supply. The SPR has already been depleted by nearly 50% while the administration tilts at price windmills here.
Mr Caldwell, Do you have any intel on why Nat Gas prices have fallen significantly recently? Now below $5. Are domestic inventories reaching full levels as winter approaches? Any insight appreciated.
- Shoulder season on gas.
- The fire at the Freeport LNG export plant has caused decreased exports and a faster storage build.
- Projections for mild La Niña winter.
- Growth in Permian associated gas production and possibility of takeaway restraints rearing their head again.
The export issue should resolve soon. The price differential with gas in Europe is just too great to prevent export growth from being stopped.
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This almost sounds like something you would read in The Onion, but the US Product Safety Commission is considering banning gas stoves citing health hazards. Apparently, they were unaware for 100+ years that there are some risks in using improperly vented gas stoves.
Unbelievable.
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Sickening stuff. Frankly, this just makes my blood boil.
Thanks for the heads-up. God help our country.
Biden administration attempting to walk back the furor created over the gas stove ban articles. Now says they won’t confiscate existing stoves, but leaving door open to “review” further restrictions on new ones. So no “stovetroopers” knocking on your door anytime soon.
“Review” is regulatory speak for keeping it off the front pages until the furor dies down. Expect some significant restrictions or bans on new gas stoves eventually. Some studies have shown there is more indoor pollution from cooking grease than burning gas. Plus, every city has building codes that do not allow a gas stove to be installed without a proper vent hood. I am sure there are low income homes who do not have proper ventilation, but to leverage this into an excuse to ban new sales is another self-destructive step of imposing greater cost and expense on all households and achieving little or no carbon reduction. How much carbon is created in manufacturing, shipping, installing, and generating the electricity for an electric stove? And who pays for it the most? The poor who cannot afford new stoves or higher bills in having to switch to electricity.
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