Unused Leases? You’ve Got to be Joking!

The warmed-over claim that oil and natural gas companies aren’t using large numbers of leases on public lands is like a Mark Twain line: What’s the difference between a cat and a lie? A cat only has nine lives!

Seriously, here we go again, with the administration claiming (again) that leases in federal areas offshore and onshore aren’t being used. It made similar claims in 2009 and again last year. Politico Pro [subscription required] says this year’s report is basically last year’s with a few updated numbers. Here’s a statement from Interior Secretary Ken Salazar:

“These lands and waters belong to the American people, and they expect those energy supplies to be developed in a timely and responsible manner and with a fair return to taxpayers.”

Let’s be clear: It’s simply fal... more »

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Energy Policy Diversion

Suggesting that because gasoline prices have been rising, something sinister is afoot certainly will grab headlines in Washington. So it's not out of line to wonder if there's some grandstanding in two senators' letter to the Federal Trade Commission, asking for a review of refinery capacity and allegations of market manipulation. Yes, says API's chief economist.

"The notion that there's a conspiracy is absurd," says John Felmy of the request from Sens. Claire McCaskill, D-Mo., and Chuck Schumer, D-N.Y. "This is an attempt to distract attention from failed energy policy. The Federal Trade Commission was already closely monitoring gasoline prices, and no evidence has surfaced to suggest supply and demand aren't the primary forces driving them."

Here's the key issue in the senators' letter:... more »

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API, others ask Congress to boost BOEMRE funding

(Editor's Note: The American Petroleum Institute, together with the American Exploration & Production Council, the Independent Producers Association of America, the International Association of Drilling Contractors, the National Ocean Industries Association and the U.S. Oil & Gas Association sent a letter to the chairmen and ranking members of the House and Senate Appropriations Full and Subcommittee, asking Congress to provide additional resources to the Bureau of Ocean Energy Management, Regulation, and Enforcement (BOEMRE) to increase staff, training and inspectors. API President and CEO Jack Gerard issued the following comment today.)

We fully support Congress providing additional resources for the Bureau of Ocean Energy Management, Regulation, and Enforcement. This agency needs the a... more »

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A Walking Drilling Rig

Did you know that drilling rigs can walk? At least this one can. It's the ECO-Pad being used by Continental Resources Inc. to drill for oil in North Dakota. walking rig.jpg

The 800,000-pound rig walks on hydraulic feet between drill sites up to 100 feet apart. Rather than creating a four-acre drilling pad for each well, the rig's portability makes it possible to drill four wells from the same drill pad. That greatly reduces the amount of land that must be disturbed for drilling.

It also saves time. Usually it takes about one week to dismantle and move a rig to the next drill site. With the ECO-Pad, the rig can walk to the next drill site in about two hours.

A few years ago, many drilling companies began setting rigs on rails to slide them to the next hole. This practice ha... more »

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Voters Support Offshore Drilling, Government Creates Obstacles

A new Rasmussen poll shows that support for offshore oil and natural gas development is holding steady despite the Deepwater Horizon accident. In a survey conducted July 22-23 via telephone, 56 percent of U.S. voters think offshore drilling should be allowed, and 47 percent favor deepwater drilling.

Unfortunately, new offshore development has ground to a standstill, and shallow-water drilling operators have discovered that complying with the government's new requirements is quite difficult. Blogger Vladimir at RedState says, "Operators have encountered road blocks at every turn."

The recertification of blowout preventers (BOPs) is one of the major obstacles. Only a few firms are licensed to perform the certifications, creating a backlog of operators whose BOPs must be recertified before ge... more »

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