Friday, October 5, 2012

API Concerned About Duplicative Fracking Regulations -- Cites "North Dakota Miracle"

Link here to Oil and Gas Journal.
Policymakers across all levels of US government must guard against unnecessary or duplicative regulations that could impede investments in unconventional oil and gas plays, which already created jobs and boosted revenues for some states, American Petroleum Institute Chief Economist John Felmy said. 
Speaking with reporters during a conference call from Washington, DC, Felmy affirmed API believes that strong state regulations and safety practices already are in place for shale development and hydraulic fracturing. “In recent years, the application of horizontal drilling has allowed hydraulic fracturing to access enormous, previously unreachable supplies of oil and natural gas—and to do so safely and responsibly,” Felmy said. 
“It was these technological achievements that led to what is known as the ‘North Dakota Miracle,’ which has transformed that state into our nation’s No. 2 oil producer, reduced unemployment there to 3%, and driven incomes up sharply,” he said. 
These same technologies were used to tap unconventional reserves, create jobs, and boost state revenues in Pennsylvania, Texas, Arkansas, Louisiana, Ohio, and other states, he added.
Also at the link regarding the New York state frack ban -- this quote says it all:
A New York Times article dated June 13 quoted sources close to Gov. Andrew Cuomo saying the state might pursue a plan “to limit the practice to several struggling counties along the Pennsylvania border, only in towns that approve the technology.” 
If accurate, it suggests that the governor considers....ah, why go on? I've got better things to do.

But back to that earlier quote:
“It was these technological achievements that led to what is known as the ‘North Dakota Miracle,’ which has transformed that state into our nation’s No. 2 oil producer, reduced unemployment there to 3%, and driven incomes up sharply,” he said. 
I've always maintained that there are two important things about the Bakken: a) what it has done for North Dakota; and, b) more broadly, as a laboratory, pretty much unfettered by federal regulation, what the Bakken has done for the nation.

My hunch: we will have duplicative federal and state regulations by 2016.

4 comments:

  1. Replies
    1. I agree. I hope I am wrong, also.

      But the "tea leaves" tell me states rights are a thing of the past. Sad.

      There are too many federal agencies that want to get in on the action: either power or money (or both) -- EPA, DOE, USACOE, Justice, USCG, BLM.

      And then there are the House and Senate committees and subcommittees on energy. When there is this much money and power at stake, the federal government is not going to stand idly by.

      With all those agencies, and all those states, we may need a czar for fracking.

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  2. It will depend one ONE thing: THE ELECTION!!!!

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    Replies
    1. I agree. You are 100% correct.

      I don't want to turn the blog into a political blog (I already have too much political stuff in it, which turns off a lot of readers) but I feel very, very comfortable going into this election. For me, it's been a long time since the decision should be very easy for everyone: if they feel the country is doing well and is headed in the right direction, the choice is obvious. If they feel the country could be doing better, or if they feel the country is not headed in the right direction, the choice is obvious.

      I don't look at where we were four years ago and where we are now. I look at where we are now and where we will be four years from now with whomever wins.

      And one little catty remark: if the election came dow to vice president, the choice is obvious.

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