The Economics of Opposition

Shell America's Marvin Odum and Alabama mine operator Ronnie Bryant would appear to have little in common. Odum oversees tens of thousands of employees, making decisions that are measurable in the billions of dollars. Bryant has permitting to open a new coal mine that would employ about 125 workers in Alabama.

No question, a galactic difference in scale. But there's at least one common point. Both run businesses that attract environmental attention.

Odum told a U.S. Chamber of Commerce audience last week that a recent lawsuit filed by environmental groups against the government, targeting the federal permitting process, could bring drilling in the Gulf of Mexico to a standstill:

"We are not named in the suit, but we have an interest in how it is resolved - as does every energy consumer in... more »

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Good News Friday: Refinery Expansion, Job Impact and a Brainstorm

Heading into another weekend, here's a look at some of the positive ways energy is affecting life in these United States:

Michigan Marathon - The Detroit Free Press reports that expansion work on Marathon's Detroit refinery is expected to peak this fall, employing 1,300 workers. The $2.2 billion project started three years ago and will let Marathon process more Canadian oil sands. Marathon promises to add 60 jobs and 75 contract positions after work is completed in the second half of next year, the paper reports. The expanded refinery is expected to generate $230 million in additional city tax revenues over the next 20 years, plus an estimated $85 million in state and local taxes.

(Oil) Boomer Sooner - You might have seen this earlier in the week, but a new study about the impact of oil an... more »

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Brazil’s Libra: Largest Oil Field in the Americas in Decades

Brazil says its deepwater Libra oil field could hold as much as 15 billion barrels of oil, making it the biggest crude oil discovery in the Americas since Mexico discovered the Cantarell field in 1976.

The Libra prospect lies in the Santos Basin about 500 miles off the coast and beneath a layer of salt about 9,800 feet below the ocean surface. ANP, Brazil's national petroleum regulatory agency says the government will retain control of Libra, and at least two Brazil-owned companies will own stakes in the field. Bloomberg/BusinessWeek reports that Petrobras, one of the companies, raised $70 billion last month in the world's largest share sale toward the $224 billion, five-year investment plan, which is said to be the oil industry's largest.

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Back in the U.S Gulf of M... more »

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Oil Companies Plan New Containment System

Four major oil companies are joining forces to build and deploy a rapid-response containment system that will be available to capture and collect oil from future blowouts in the Gulf.

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The new system will be suitable for use in depths of up to 10,000 feet--twice as deep as the Macondo well--and will have the capacity to contain 100,000 barrels of oil per day with expansion potential.

The four companies, which include Chevron, ConocoPhillips, ExxonMobil and Shell, have committed $1 billion to pay for the initial cost of the new system. They also will assemble a dedicated staff to maintain readiness under a new non-profit organization called the Marine Well Containment Company. Other companies will be invited to participate.

"[R]egardless of how unlikely it is that this situation will reoccu... more »

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Companies Respond to Oil Spill

While the response to the Deepwater Horizon accident has focused on BP, it's not the only energy company that is working 24/7 to plug the leaks and manage the spill.

As Chris John, president of the Louisiana Mid-Continent Oil & Gas Association observed in the podcast below, many other companies have volunteered to send equipment and personnel to help in the response activities.

The National Ocean Industries Association (NOIA) recently compiled a list of companies that have offered to help with response effort. Many API members are included:

  • Marathon - Two support vessels; deepwater drilling experts; and ROV hot stab equipment.
  • Chevron - Chevron's Venice, La., base for spill response activities; personnel from its Pascagoula refinery to assist the Coast Guard's... more »

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