Marcellus & Utica Shale Story Links: Thu, Nov 21, 2013
The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading:
Twenty-Three States Are Fracking, New York Dawdles
Natural Gas Now
Twenty-three states are developing their shale gas resources and one, New York State, is sitting on the sidelines, afraid to make on fracking for fear of being politically incorrect. Governor Cuomo, it has become clear you are the reason New York’s natural gas is stalled. After nearly six years of delay, the contrast between New York and other states is appalling. Twenty-four states have shale gas or oil. Twenty-three states are developing it. Which state is not? New York. Twenty-four states have oil and gas regulations. Twenty-three states think that regulation is effective to insure that industry develops natural gas without harming the environment. Which state does not? New York
Royalty disputes fuel anger over state’s oversight of gas production data
The Marcellus Shale is one of the most productive natural gas formations in the world. But when it comes to measuring precisely how productive it is, Pennsylvania doesn’t audit the numbers. Natural gas production data is submitted to the state Department of Environmental Protection directly from drillers and published online before it’s verified. As allegations of underpaid gas royalties continue, some landowners are frustrated there is nowhere for them to go to check how much gas is produced and what they’re supposed to be paid.
California Congresswoman Seeks Offshore Fracking Moratorium
Rep. Lois Capps (D-Calif.) called for a moratorium on offshore fracking in federal waters on Tuesday, requesting a comprehensive study of its environmental and public health impacts. “I have been seriously concerned about offshore fracking since recent reports first brought it to light,” Capps said in a statement. In a related letter to the Department of the Interior and the Environmental Protection Agency calling for the moratorium and study, Capps cited records detailing at least 15 incidents of fracking in federal waters off California over the last two decades. She wrote that the activities had been approved with “overly broad and outdated plans” that did not adequately account for the risks.
California Proposes New Regulations on Hydraulic Fracturing Operations
California has recently issued proposed regulations that will significantly impact oil and gas extraction in the State. Oil and gas producers that use well stimulation techniques, including hydraulic fracturing (HF), should be aware of these extremely important developments and determine how the proposed regulations will affect their operations. The California Department of Conservation will accept public comments on the proposed regulations until January 15, 2014, and affected parties should consider submitting comments to the agency. On November 15, 2013, the Department of Conservation issued its highly anticipated proposed regulations for HF, commonly known as “fracking.” The proposed regulations would enhance existing rules and implement the requirements of SB 4, which was passed by the California Legislature and signed by Governor Jerry Brown in September. Although the focus of attention has been on HF, the proposed regulations apply more generally to the use of well stimulation in oil and gas production throughout the state.
Chesapeake Energy’s Recipe For Profitability Is Working
I have followed Chesapeake Energy for a number of years and have written a number of articles on the company. I can honestly say that I am more optimistic about the company today than I have been in the last 3 or 4 years. As I follow the company and watch to see if it’s maintaining its plan to bring itself back to profitability, I’m very excited about what I have been observing. What I am summarizing here, I will expound on later in this article. I am excited to see Chesapeake increasing revenue, decreasing capital expenditures and increasing productivity all at the same time. This is a winning combination. Let’s take a look at the company’s numbers.
Fracking Is Quickly Becoming the Apple of the Public’s Eye
The Motley Fool
Despite recent losses at the polls, fracking is slowly starting to garner more public support. A recent poll of 1,001 adults by Robert Morris University Polling Institute showed that 56% supported hydraulic fracturing. Further, those with an opinion on fracking strongly believed that it has the potential to fuel economic growth, and move the country toward energy independence. The big sticking point for many are the environmental concerns. Of those polled, 60% said that the environmental impact of gas drilling outweighs energy independence and reduction in energy bills. That said, the public does appear to be softening its stance against fracking. According to Robert Morris, a similar poll three years ago would have only found a third of those polled in support of fracking. This is an important shift for the industry, which has struggled with image problems.