For Those Hoping To See Less Flaring In The Bakken, Federal Help Is On The Way

Assuming more federal regulation will lead to less fracking, which will lead to less drilling, which will lead to less flaring, this is good news for those concerned with too much flaring in North Dakota. KOG and WPX should be concerned, and to some extent, Whiting, I suppose.  But all those folks who want to see less flaring should be out buying bottles of champagne tonight. Just don't open them yet.

Disclaimer: this is not an investment site, but I will be watching KOG share price to get an idea where analysts stand on this issue. But no one should make investment decisions based on what is posted at this blog or what they think has been posted at this blog. This is not an investment site. It is for entertainment and education, and not necessarily much of the latter.

Rigzone is reporting:

The Independent Petroleum Association of America (IPAA) and the Western Energy Alliance (WEA) say the second draft of the Department of the Interior’s (DOI) proposed draft rule to regulate hydraulic fracturing and well construction on federal lands would undercut U.S. state authority to regulate energy production.

The industry groups submitted comments on the second draft Thursday. The proposed rule would cost the energy industry $345 million a year and discourage independent producers from exploring for natural gas and oil on federal lands, IPAA President and CEO Barry Russell said.

“Our federal system has vested the states with the authority to ensure that development of energy sources is safe and responsible,” Russell said in an Aug. 22 statement, adding that DOI should not be in the business of undermining the progress made by state regulators and local environmental groups in developing shale resources.

It was very clear to me where the new Secretary of the Interior stood on this issue.