Jack Gerard, the CEO of the American Petroleum Institute, or API, spoke at a lunch for business leaders in New Orleans on Thursday, July 17. In his speech, Gerard called for policy changes on the part of the Obama administration in regard to its approach to energy policy.
Gerard called the Obama administration’s current approach to energy policy irrational and stated that the nation needs the White House to take on a more significant and proactive leadership role to help it to make necessary adjustments for the era of energy abundance and security.
Gerard feels that the country is currently standing at an energy crossroads, but that government policy will play a key role in deciding how the United States continues in the industry in the future. It is currently the world’s largest producer of both oil and natural gas, but, according to Gerard, the energy policy of the Obama administration has not done much to help fuel that growth and is not doing anything to maintain it.
For more on Jack Gerard’s speech and opinions, read the full article at http://www.nola.com/business/index.ssf/2014/07/american_petroleum_institute_h.html
No one could have imagined that Israel would ever be in a position to sell gas to Egypt. This is because the country was purchasing gas from Egypt just two years ago. However, the trade was ended because of repeated bombing of the pipeline. Political pressures also played a role in influencing the country’s decision to cut off Israel’s supply of the commodity.
Two years later, both countries have signed a deal for Egypt to get gas from Israel’s gas field. The deal is being facilitated by Israel’s Noble Energy of Housto and Egypt’s Union Fenosa. It is believed that this latest agreement may trigger a much larger reserve. Tamar is only one of Israel’s offshore gas fields. The other one is Leviathan which is twice as large as Tamar.
Tamar is estimated to have approximately 10 trillion cubic feet of gas. This is enough gas to sustain Israel and provide them with the option of exporting the excess. Of the 10 trillion cubic feet of gas that Tamar is estimated to contain, Egypt is set to get 2.5 trillion of that amount.
Governor of Texas, Rick Perry sent a fiery letter to President Obama attacking the president’s policies, and lack of action particularly on energy issues. The letter was sent on Friday May 16 and made public on Monday, May 19. In his letter, Governor Perry criticized the president’s failure to grant approval for the Keystone XL Pipeline, as well as his current approach towards energy. He added that President Obama’s stance on energy is suffocating the industry and encouraged him to replicate Texas’ energy approach on a nationwide scale.
Perry also hurled a string of criticisms in his letter regarding the regulations implemented by the Environmental Planning Agency (EPA). The EPA has implemented new rules relative to coal fired plants which Texas has since challenged. One of the rules is that states will be held accountable for pollution that drifted into other states. Despite the challenges to the new rules, they were upheld by both the Supreme Court and the federal appeals court.
In a recently released report, Gulfport Energy Corp. said that the company’s output is in line with guidance. The company is estimating that its production will be at an average of 27,100 boe/d. This estimation does not include the company’s latest acquisition of the Utica Shale from Rhino Resources Partners LP which produced approximately 900 boe/d during the quarter.
Gulfport is optimistic about the future of production despite the harsh winter conditions experienced. This is because downtime was factored in the guidance. The company will begin hydraulic fracturing shortly in the Darla pad in Utica. However, reports into its performance wont be made available until September. An update will be provided about the dry-type gas curve by June the latest.
Gulfport already owns 165,430 acres within the Utica but has further plans to increase its assets. Plans are afoot to acquire at least 8,000 additional acres in the Utica formation.
Energy reforms in Mexico have allowed for Texas companies to begin investment in the Eagle Ford Shale zone which runs along the Texas-Mexico border. With new investments in the area, the Eagle Ford Shale play could see up to $1.2 trillion in investments.
Now that the Mexican government has opened up the oil and gas industry to private investment, ventures will able to take hold on both sides of the border. The Mexican government does not have the money or the resources to tap into the shale deposits that is has on its own soil. However, it believes that it can partner with big money and get into those deposits.
This change means that millions of jobs and billions of dollars will be created through the exploration of the shale zone along the border. Texas companies will win the biggest, but the entire state will be able to tap into greater energy resources as a result of this change in Mexican policy.
Despite the current shattering low prices of natural gas nationwide, Blackstone Group is making a giant leap of faith by purchasing three gas fired plants in Texas. The plants are being sold by retail electricity provider, Direct Energy, who initially purchased the plants to protect itself against the price increases in the domestic power market of the day.
Direct Energy bought the three plants for $331 million and is selling them to Blackstone for double the price. This investment will cost Blackstone Group $685 million. Reports have however surfaced that the investment firm is hoping that the state’s electricity prices remain very low.
Fears abound among state regulators that Texas’ increasing population could erode the electricity supply. As a result the Public Utilities Commission is considering paying power plants to keep excess energy. Currently, power plants are only paid for the power that they supply. This will be an incentive for energy companies to build more power plants.
The Independent Petroleum Association of America has elected a Houston based energy CEO to be their chairman. Michael Watford is the current chairman and CEO of Ultra Petroleum Corp, a Houston based energy company that specializes in acquisition and development of oil and natural gas properties. Houston is at the center of the formidable Texas energy industry. It is headquarters for numerous energy companies and electricity providers who serve the large Texas deregulated electricity market.
Over Watford’s 14 year term as CEO of Ultra Petroleum the natural gas company has seen its market value increase over 100 fold; from $50 million to $5.5 billion. He will take over for the outgoing chairman Virginia Lazenby. Watford’s term will be for 2013- 2015.
The IPAA represents thousands of independent oil and natural gas producers and service companies from across the United States. According to the association’s website, their mission is to “ensuring a strong, viable domestic oil and natural gas industry, recognizing that an adequate and secure supply of energy is essential to the national economy.”
It is not news that gas prices have gone up tremendously in the past two decades, but what may be a surprise to many Americans is that the gas and oil tycoons are not really going anywhere with their businesses. Sure, business is steady and secure, but is there any new work being done? With no discoveries of new, untapped oil deposits despite their investments, the companies are running out of options to ensure their survival into the future. Companies like Exxon Mobil and BP are at risk of losing profits.
Why are these companies endangered? The more research and funding that flows into natural gas, the more people who will willingly accept an alternative means of fuel once the oil giants become too pricey. The price of crude oil has been increasing over the past decade, and as the price of it increases per barrel, the oil tycoons are losing profit and ground over the fuel game.
Mexico’s new president has been radically changing the state of the country. With massive improvement on the country’s education system and a more precise, stronger effort to help maintain Mexico’s infamous drug industry. One of Mexico’s largest problems was that it was not allowing foreign investment into its oil industry, or allowing the oil’s exportation.
Mexico has massive untapped oil reserves just waiting to be used within the Gulf of Mexico. Until today, Pemex, the leading company responsible for Mexico’s internal oil production, did not have the resources to tap those reserves remaining in the Gulf. With the new president’s actions taking effect, he will have to continue to map out the new international oil trade in Mexico. Both the public and the critics support his actions and he has already proven competent in other areas of his office.
The oil industry in Canada has seen a more than ninety percent drop foreign investment from last year. While those within the industry have tried their hardest to change things for the better, they simply do not have the resources.
Foreign investment is so vital to Canada’s oil industry that those within the country risk losing a large amount of their capital. Foreign investment accounts for roughly twenty five percent of the funds put into Canada’s green projects. In order to help stop the bleeding from the oil industry, Canada has been seeking assistance from the Chinese, the world’s second largest supporter of green industries. Only time will tell if Canada’s oil industry can recover from the crippling loss of its main investors. With China’s help and the support of the government though, anything is possible.
To read more on this story, visit http://www.ibtimes.com/canadas-oil-industry-may-slow-after-government-limits-foreign-investments-1413672.