In a recent op-ed in the Argus Leader, John Duff Erickson, professor emeritus at the South Dakota School of Mines and Technology, makes a strong case for continuing the development of Canadian oil sands. He notes that Canada is the largest supplier of oil to the United States, and Canadian oil is helping to bolster U.S. energy security.

Mr. Erickson also expresses his concern about a coalition's efforts to stop the use of oil sands-derived crude oil in the United States. He says the coalition is arguing that oil sands production is a leading cause of greenhouse gas emissions:

"It would be folly to halt oil sands production and the construction of pipelines that would carry Canadian oil to U.S. markets. Oil sands development accounts for less than 1 percent of global greenhouse-gas emissio... more »

The headline on the USA Today Web site reads, "ExxonMobil 2Q profit falls a surprising 66%." But in actuality, oil company second quarter earnings reports shouldn't be a surprise to anyone.

The oil and natural gas business is cyclical, meaning that it has its ups and downs, and some years are better than others. It's also important to note that oil and natural gas companies are "price-takers" not "price-makers," because the price of oil and natural gas is determined by the marketplace. Remember Economics 101? Prices are determined by the law of supply and demand.

Furthermore, quarterly earnings always are compared with earnings during the same quarter of the previous year, and market conditions have changed dramatically since 2008. This year the global recession has had a huge impact on de... more »

Thinking about a career in the oil and natural gas industry? The summer 2009 Salary Survey report from the National Association of Colleges and Employers (NACE) shows that petroleum engineers are pulling in the highest starting salaries.

Why? Increasing demand for energy and current employees nearing retirement has created unprecedented opportunity. One out of four current engineers, geoscientists, multi-skilled maintenance professionals, process and production operators, and health and safety professionals in the oil and natural gas industry are eligible for retirement this year.

The oil and natural gas industry needs these skilled professionals to meet America's demand for energy. In fact--according to NACE's report--"out of the more than 1,524,000 bachelor's degrees awarded in 2007, jus... more »

In a move that relieves some of the legal worries about offshore oil and natural gas development, the U.S. Court of Appeals for the District of Columbia has ruled that the 2007-2012 offshore leasing plan can move forward uninterrupted.

API hailed the decision saying, "The court made the right decision by allowing the continued production of oil and natural gas from Gulf of Mexico leases already issued in the Outer Continental Shelf and to future leases in the Gulf under the 2007-2012 Five-Year Program. Offshore oil and gas leasing under the program is responsible for thousands of well-paying jobs, over $10 billion in much-needed revenue for federal, state and local governments. The nation's energy security depends on these resources."

In a separate statement, Sen. Mary Landrieu (D-La.) sai... more »

In a recent Houston Chronicle op-ed, Richard Burleson, managing partner of Houston-based and energy-focused law firm Burleson Cooke L.L.P., cautions the administration and Congress against over-regulating hydraulic fracturing. As we've explained in this blog, hydraulic fracturing is a process where fluid is pumped under pressure down through the wellbore to make tiny fissures in the rock, allowing natural gas and oil to flow more easily up through the well.

According to Mr. Burleson, concerns about hydraulic fracturing on drinking water are misplaced:

"Hydraulic fracturing is safe, and there is no credible evidence to suggest otherwise...Fracing liquids are injected thousands of feet below the water table, and rock generally acts as a barrier to prevent any migration."

Mr. Burleson adds th... more »