Category Archives: Economic

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Domestic Shale Production: Good for America/Bad for OPEC

There are lots of reasons to be happy about strong America’s shale resources, but here’s one more – it’s putting a hurting on OPEC!   According to U.S. Energy Information Administration (EIA) estimates, in 2016, “members of the Organization of the Petroleum Exporting Countries (OPEC) earned about $433 billion in net oil export revenues (unadjusted for … Continue Reading

EIA: Permian Basin Oil Production and Resource Assessments Continue to Increase

According to the U.S. Energy Information Administration, “Crude oil production in the Permian Basin is expected to increase to an estimated 2.4 million barrels per day (b/d) in May, based on estimates from EIA’s Drilling Productivity Report. Between January 2016 and March 2017, oil production in the Permian Basin increased in all but three months, … Continue Reading

Domestic Crude Oil Production Down in 2016

According to the U.S. Energy Information Administration, ““Despite increasing crude oil prices throughout most of 2016, total U.S. crude oil production in 2016 was below its 2015 level. However, monthly production began growing in the fourth quarter of the year after declining over the first three quarters. Total 2016 production remained above the five-year average. … Continue Reading

EIA – Energy Royalty and Rental Revenue on Federal Lands Declined Again in 2016

According to the U.S. Energy Information Administration (“EIA”) “In fiscal year (FY) 2016, the U.S. government collected almost $6 billion in revenues from royalties, rental costs, and other fees from activities related to energy production on federal and American Indian lands, according to the Department of Interior’s Office of Natural Resource Revenue. These activities include … Continue Reading

Study Shows Hydraulic Fracturing Benefits Local Communities

The benefits of hydraulic fracturing on a national scale are well-known: lower energy prices, greater energy security, and reduced greenhouse gas emissions.  Yet there have been concerns that adverse health and social impacts outweigh these benefits for communities where drilling occurs.   Now, a new study out of the University of Chicago indicates that the average … Continue Reading

Shocker from EIA – Lifting the Crude Export Ban Results in More Crude Exports

“Since the removal of restrictions on exporting U.S. crude oil in December 2015, the number of countries receiving exported U.S. crude has risen sharply. These exports have occurred despite a sustained narrow price premium of international crude oil prices over U.S. domestic crude oil prices, the many costs associated with arranging cargoes for export, and … Continue Reading

EIA: Renewables Will Grow and Fossil Fuels Will Remain

In an energy policy debate that is far too often dominated by ideological purists, here is a statistic for those who support renewable energy growth and continued reliance on fossil fuels: According to the Energy Information Administration (EIA), growth in renewables has reduced the percentage of energy consumption powered by fossil fuels to the lowest … Continue Reading

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

Shareholders Reject Activist Proposal on Shale Gas Risk Reporting

Shareholders at Exxon Mobil and Chevron Corp. voted down proposals from activist investors that would have required reporting on progress on efforts to minimize adverse effects from shale gas drilling and production. The efforts at Exxon Mobil came from a group led by the New York City Pension Funds and the Park Foundation, while the … 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