Category Archives: Economic

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New Natural Gas-Fired Power Plants Located Near Shale Plays

“Growth in natural gas-fired generation capacity is expected to continue over the next several years, as 18.7 gigawatts (GW) of new capacity comes online between 2016 and 2018. Many of the new natural gas-fired capacity additions in development are near major shale gas plays. The Mid-Atlantic states and Texas have the most natural gas-fired capacity additions … Continue Reading

Increased Natural Gas Supply from Hydraulic Fracturing Largely Responsible for Changes in Power Sector

“After increasing in 2013 and 2014, energy-related carbon dioxide (CO2) emissions fell in 2015. In 2015, U.S. energy-related carbon dioxide emissions were 12% below the 2005 levels, mostly because of changes in the electric power sector . . . . Overall, the fuel-use changes in the power sector have accounted for 68% of the total … Continue Reading

Energy Information Administration: Natural Gas from Hydraulically Fractured Wells Accounts for Two-Thirds of Total U.S. Production

“Based on the most recent data from states, EIA estimates that natural gas production from hydraulically fractured wells now makes up about two-thirds of total U.S. marketed gas production. This share of production is even greater than the share of crude oil produced using that method, where hydraulic fracturing accounts for about half of current … Continue Reading

Ruling on Pipeline Agreements in Sabine Chapter 11 Case Indicates Battles That Lie Ahead in Energy Company Bankruptcy Cases

This post is co-authored by Kelley Drye Bankruptcy attorney Ben Feder. U.S. Bankruptcy Judge Shelley Chapman ruled last week in the chapter 11 case of Sabine Oil & Gas that Sabine could utilize the U.S. Bankruptcy Code to “reject” certain agreements with pipeline operators.  This decision will permit Sabine to walk away from its obligations … Continue Reading

EPA’s Estimate of the “Social Cost of Methane” Used to Justify New Source Performance Standards for the Oil and Natural Gas Industry

On Tuesday, August 18, 2015, the U.S. Environmental Protection Agency (“EPA”) issued proposed New Source Performance Standards (“NSPS”) under the Clean Air Act covering methane and volatile organic compound (“VOC”) emissions for certain equipment, processes, and activities in the oil and natural gas source category—including hydraulic fracturing and refractured oil wells that can contain natural … Continue Reading

Senate Committee Staff Release Report Espousing Benefits of Hydraulic Fracturing

In the final days before the November election, the  Republican (then minority) staff of the Senate Environment and Public Works Committee released a report outlining the domestic economic benefits of hydraulic fracturing, entitled Setting the Record Straight: Hydraulic Fracturing and America’s Energy Revolution. The report espouses the benefits of hydraulic fracturing and horizontal drilling, and … Continue Reading

Coast Guard Proposes to Allow Bulk Transport of Hydraulic Fracturing Wastewater

The U.S. Coast Guard issued a proposed policy letter on October 30th that puts forward a process to issue endorsements to barge owners to transport shale gas extraction wastewater in bulk. The letter creates specific conditions that barge owners would have to meet to obtain a certificate of inspection endorsement allowing wastewater transport. Barge owners … Continue Reading

DOE’s Study of Economic Impacts of U.S. LNG Exports Creates Fodder for Both Sides

On December 5, 2012, the U.S. Department of Energy, Office of Fossil Energy (DOE) posted the long awaited results of a third-party study on the potential macroeconomic impacts of liquefied natural gas (LNG) exports. Although the study’s aggregate macroeconomic results suggest that LNG export has net benefits to the U.S. economy, whether the study will … Continue Reading

Hydraulic Fracturing, Natural Gas and the U.S. Manufacturing Renaissance Conference Assembles Over 60 Industry Leaders to Discuss Emerging Issues in Natural Gas Development

On October 23, 2012, Kelley Drye & Warren, LLP convened a conference of key members of the oil and gas industry and energy-intensive manufacturing industries.   The seminar, entitled Hydraulic Fracturing, Natural Gas and the U.S. Manufacturing Renaissance, took place at the Ronald Reagan Building and drew over 60 companies and trade associations involved in the … Continue Reading

SEMINAR INVITATION: Hydraulic Fracturing, Natural Gas and the US Manufacturing Renaissance

Please join us on Tuesday, October 23rd as Kelley Drye’s Environmental & Energy and Government Relations practice groups gather government and industry leaders at the Ronald Reagan Building and International Trade Center, in Washington, DC, to discuss important issues surrounding the increased production of natural gas in the U.S. and its implications for US manufacturers and … Continue Reading

BLM Propose Rule on Fracking on Public and Indian Lands: Small Point About Small Businesses

In our prior post on the BLM fracking rule, we discussed confidential information and trade secrets which the agency is proposing to collect and, in some cases, disclose.  That issue concerns all businesses in the hydraulic fracturing industry.  The issue here is of particular interest to “small entities” impacted by the proposal, which for legal … Continue Reading

White House Executive Order Supporting Development of Unconventional Natural Resources

Today the President issued an Executive Order (insert) establishing an inter-agency working group to "facilitate coordinated Administration policy efforts to support safe and responsible unconventional domestic natural gas development." This is a welcomed respite from a series of otherwise misguided federal efforts to over-regulate hydrologic fracturing. By coordinating under the direction of the White House Domestic Policy Council the efforts of 13 federal agencies seeking to study, review or regulate unconventional gas development, and fracking in particular, the White House appears to be backing up the President's promise in his State of the Union speech to support domestic energy production and particularly development of unconventional natural gas resources.… Continue Reading

Fracking – Four Key “D.C.” Issues Every Company Should be Watching

The controversy over hydraulic fracturing has ushered in an unprecedented wave of scrutiny over the oil and gas industry from nearly every angle—new lawsuits, more state regulations, constant press (often misleading as captured well in this recent Forbes article), local protests, and city council moratoriums. At the same time the President has reeled off a … Continue Reading

Influential Leaders Cite Fracking’s Critical Role in America’s National Security

This week a bipartisan group of some of the most influential government and national security leaders of the past thirty years announced the formation of the United States Energy Security Council—and they see a major role for shale gas in America’s future. The Council (whose members include former Secretary of State George P. Shultz, former … Continue Reading

USGS Dramatically Increases Estimated Natural Gas Resources in the Marcellus

The United States Geological Survey (USGS) issued a report this week indicating that the Devonian Marcellus Shale formation holds an estimated 84 trillion cubic feet (Tcf) of technically recoverable undiscovered natural gas (with an additional 3.3 Tcf of undiscovered natural gas liquids). As The New York Times’s Ian Urbina notes, the USGS’s estimate is much … Continue Reading

Fracking – An Indisputable Economic Engine

The events surrounding the regulation and enforcement of hydraulic fracturing (fracking) in natural gas (and oil) operations have been rapidly evolving over the last year. While this blog has focused primarily on covering those issues, it is worth noting that much also has been happening in the economic and market arena during the same time. … Continue Reading

Can Calm and Reason Prevail in the Fracking Debate?

Andrew Revkin, of the New York Times, has written a short, but very reasonable and worthwhile piece on the ongoing public debate/controversy/vitriol/rhetoric surrounding the shale-gas boom, and the use of hydraulic fracturing (fracking) (which as many do, and should, point out, is a process used to drill for natural gas and oil in certain geologic formations, … Continue Reading

What is the Future Role of Natural Gas?

The recent and significant discoveries of abundant unconventional natural gas resources across the United States has sparked a debate about what role natural gas will play in America’s future energy portfolio. The United States Energy Information Agency estimates that while shale gas accounted for 14 percent of U.S. Natural Gas production in 2009, it is … Continue Reading