A report issued on Feb. 28, 2013 by the Congressional Research Service, a branch of the U.S. Congress. The report shows that while oil and natural gas production on private land in the U.S. rose from 2007-2012, production decreased, significantly, on federal lands during the same period. Obama administration policies are partially to blame for the decrease in federal land production.
This document discusses the impact of shale gas development in North America on global natural gas markets and the oil and gas industry in the Gulf Cooperation Council (GCC) region. It finds that shale gas has significantly increased US natural gas production and lowered prices, making the US a potential gas exporter. This could threaten established gas exporters like Qatar by increasing competition and downward pressure on gas prices. GCC countries that import gas may benefit from better import prices but gas-rich countries face threats from potential substitution of gas for oil. Overall, shale gas presents both opportunities and threats to the GCC that will depend on future production and price trends in global gas markets.
Mercer Capital's Value Focus: Exploration & Production | Q3 2017 | Region Foc...Mercer Capital
Mercer Capital's E&P newsletter provides perspective on valuation issues. Each newsletter also typically includes macroeconomic trends, industry trends, and guideline public company metrics.
The monthly Short-Term Energy Outlook (STEO) from the U.S. Energy Information Administration for December 2016. This issue makes a couple of key points re natural gas: (1) EIA predicts that natural gas production in the U.S. for 2016 will see a healthy decline over 2015 levels--1.3 billion cubic feet per day (Bcf/d) less in 2016. That's the first annual production decline since 2005! (2) The EIA predicts the average price for natural gas at the benchmark Henry Hub will climb from $2.49/Mcf (thousand cubic feet) in 2016 to a whopping $3.27/Mcf in 2017. Why the jump? Growing domestic natural gas consumption, along with higher pipeline exports to Mexico and liquefied natural gas exports.
The monthly Short-Term Energy Outlook (STEO) from the U.S. Energy Information Administration for April 2016. This issue makes a couple of key points re natural gas: (1) U.S. natural gas inventories just finished the winter heating season at their highest level ever, and are expected to be at a record high at the start of next winter heating season in November. (2) This summer natural gas consumption for electricity generation is expected to reach a record high. Here's the natgas section of the STEO, along with a copy of the full report.
Company website presentation (a) september 2016AnteroResources
The document provides an overview of Antero Resources Corporation. It begins with forward-looking statements and disclaimers about projections. It then notes that the company has updated its 2016 production and operating cost guidance, increasing projected growth to 20% and lowering costs. The acquisition of additional acreage from a third party is discussed, which adds over 66,000 net acres and over 5 trillion cubic feet of reserves. This significantly increases Antero's core drilling locations and provides growth for its midstream subsidiary, Antero Midstream. The economics of developing the acquired acreage are attractive, with projected returns of 51-77% depending on gas prices.
An issue brief/report from the Manhattan Institute. The 20-page report says now is the time for the U.S. to press its advantage in shale energy. The report's writer, senior fellow at the Manhattan Institute, Oren Cass, points out the cyclical nature of commodity prices for oil and gas and says even though prices are down now--they won't stay that way. In order to take full advantage of the shale boom, Cass suggests 11 reforms to help craft a smarter U.S. energy policy--one that will amplify the current boom and extend it far into the future.
Mercer Capital's Value Focus: Energy Industry | Q3 2019 | Region Focus: BakkenMercer Capital
Mercer Capital's Energy Industry newsletter provides perspective on valuation issues. Each newsletter also typically includes macroeconomic trends, industry trends, and guideline public company metrics.
Outlook for Energy and Minerals Markets - for the 116th CongressRoger Atkins
TESTIMONY OF KEVIN BOOK MANAGING DIRECTOR, CLEARVIEW ENERGY PARTNERS, LLC
BEFORE THE
U.S. SENATE COMMITTEE
ON ENERGY AND NATURAL RESOURCES
FEBRUARY 5, 2019
This document discusses the impact of shale gas development in North America on global natural gas markets and the oil and gas industry in the Gulf Cooperation Council (GCC) region. It finds that shale gas has significantly increased US natural gas production and lowered prices, making the US a potential gas exporter. This could threaten established gas exporters like Qatar by increasing competition and downward pressure on gas prices. GCC countries that import gas may benefit from better import prices but gas-rich countries face threats from potential substitution of gas for oil. Overall, shale gas presents both opportunities and threats to the GCC that will depend on future production and price trends in global gas markets.
Mercer Capital's Value Focus: Exploration & Production | Q3 2017 | Region Foc...Mercer Capital
Mercer Capital's E&P newsletter provides perspective on valuation issues. Each newsletter also typically includes macroeconomic trends, industry trends, and guideline public company metrics.
The monthly Short-Term Energy Outlook (STEO) from the U.S. Energy Information Administration for December 2016. This issue makes a couple of key points re natural gas: (1) EIA predicts that natural gas production in the U.S. for 2016 will see a healthy decline over 2015 levels--1.3 billion cubic feet per day (Bcf/d) less in 2016. That's the first annual production decline since 2005! (2) The EIA predicts the average price for natural gas at the benchmark Henry Hub will climb from $2.49/Mcf (thousand cubic feet) in 2016 to a whopping $3.27/Mcf in 2017. Why the jump? Growing domestic natural gas consumption, along with higher pipeline exports to Mexico and liquefied natural gas exports.
The monthly Short-Term Energy Outlook (STEO) from the U.S. Energy Information Administration for April 2016. This issue makes a couple of key points re natural gas: (1) U.S. natural gas inventories just finished the winter heating season at their highest level ever, and are expected to be at a record high at the start of next winter heating season in November. (2) This summer natural gas consumption for electricity generation is expected to reach a record high. Here's the natgas section of the STEO, along with a copy of the full report.
Company website presentation (a) september 2016AnteroResources
The document provides an overview of Antero Resources Corporation. It begins with forward-looking statements and disclaimers about projections. It then notes that the company has updated its 2016 production and operating cost guidance, increasing projected growth to 20% and lowering costs. The acquisition of additional acreage from a third party is discussed, which adds over 66,000 net acres and over 5 trillion cubic feet of reserves. This significantly increases Antero's core drilling locations and provides growth for its midstream subsidiary, Antero Midstream. The economics of developing the acquired acreage are attractive, with projected returns of 51-77% depending on gas prices.
An issue brief/report from the Manhattan Institute. The 20-page report says now is the time for the U.S. to press its advantage in shale energy. The report's writer, senior fellow at the Manhattan Institute, Oren Cass, points out the cyclical nature of commodity prices for oil and gas and says even though prices are down now--they won't stay that way. In order to take full advantage of the shale boom, Cass suggests 11 reforms to help craft a smarter U.S. energy policy--one that will amplify the current boom and extend it far into the future.
Mercer Capital's Value Focus: Energy Industry | Q3 2019 | Region Focus: BakkenMercer Capital
Mercer Capital's Energy Industry newsletter provides perspective on valuation issues. Each newsletter also typically includes macroeconomic trends, industry trends, and guideline public company metrics.
Outlook for Energy and Minerals Markets - for the 116th CongressRoger Atkins
TESTIMONY OF KEVIN BOOK MANAGING DIRECTOR, CLEARVIEW ENERGY PARTNERS, LLC
BEFORE THE
U.S. SENATE COMMITTEE
ON ENERGY AND NATURAL RESOURCES
FEBRUARY 5, 2019
Between May 2011 and May 2013, the amount of natural gas flared in North Dakota grew 2.5 times from approximately 106,000 to 266,000 Mcf per day. Over the course of 2012, natural gas flaring in North Dakota emitted 4.5 million metric tons of carbon dioxide, equivalent to the annual emissions of approximately one million cars. Additionally, over the course of 2012, North Dakota oil and gas producers flared more than $1 billion worth of natural gas.
ICF International presents a post–American Recovery and Reinvestment Act (ARRA) outlook for the alternative fuel vehicles (AFV) industry and shares new trends related to plug-in electric, biofuel, natural gas, propane, and hydrogen-fueled vehicles.
The presentation outlines the top five AFV trends as identified by ICF:
1. Demand in the medium- and heavy-duty sectors for natural gas and propane vehicles
2. Strong growth in plug-in electric vehicles supported by state and utility incentives
3. Innovation and growth in biofuels resulting from compliance markets
4. Increased awareness and adoption of third-party leasing and ownership models for alternative fueling infrastructure
5. New approaches for fleet management
To learn more, view the recording of the webinar: http://www.icfi.com/insights/webinars/2014/recording-us-alternative-fuel-advanced-vehicle-trends
The Bord Gáis Energy Index for September 2014 saw significant increases in the wholesale prices of Natural Gas (21%) and Electricity (17%). This was mostly offset by a fall in Brent Crude Oil as the Bord Gáis Energy Index rises by 3%.
This document provides an overview of the petrochemical market outlook for the Americas in the first half of 2017. Major themes include new ethylene capacity coming online in the US Gulf Coast region, which is expected to lengthen already long ethylene and propylene markets. Upcoming turnarounds in the first quarter of 2017 may provide temporary pricing support. However, downward pressure on prices is expected as the new capacity expansions start up in the second quarter and beyond. World-scale additions in polyethylene and methanol capacity are also noted as factors that will impact markets in the second half of the year. The political environment under the new Trump administration and economic conditions in Latin America are highlighted as additional influences to monitor.
Lifting a 40 Year Ban on U.S. Crude Oil ExportsBenson_t
The document discusses the impacts of lifting the US ban on crude oil exports. It notes that removing the ban would have positive macroeconomic effects for the US by increasing GDP, employment, and domestic crude oil production. US refineries would see lower margins, as exports would align domestic refinery configurations with global crude prices. The global oil market would also benefit from more efficient refining operations and increased supply and demand for crude oil and refined products respectively.
The Guinness Global Energy Report for March 2017 provides the following highlights:
1) Oil prices were flat in February as signs of good OPEC compliance with production cuts were offset by rising US inventories due to high imports.
2) US natural gas prices fell as mild winter weather reduced heating demand, while the market remains structurally undersupplied.
3) Energy stocks underperformed the broader market in February as the MSCI World Energy Index fell 2.0% compared to a 2.8% rise in the MSCI World Index.
The U.S. Energy Information Administration's Short-Term Energy Outlook issued Nov. 10, 2015. The STEO looks at the recent history of oil, natural gas, coal, renewables, etc., and predicts what will happen in the coming months/up to one year out. This report predicts the Henry Hub natural gas spot price to average $2.59/million British thermal units (MMBtu) this winter (October 2015–March 2016) compared with $3.35/MMBtu last winter.
The document summarizes the key points of the Iran nuclear deal reached between Iran and six world powers. The deal will lift sanctions on Iran in exchange for curbing its nuclear program. This will open up Iranian oil reserves to the global market, estimated to increase supply by 500,000 barrels per day. It will also allow Iran to sell natural gas. The increased supply of oil and gas from Iran is expected to put downward pressure on prices. While the deal could face opposition, it represents a major shift in opening up Iran's economy after years of isolation.
QEP Resources is an oil and gas exploration and production company with operations in the northern and southern United States. The company's profitability is highly dependent on oil and gas prices, which have declined significantly in recent years. A discounted cash flow model values the company at $17.76 per share, suggesting an 11% upside from the current stock price of $16.02. However, the recommendation is a hold due to uncertainty around future commodity prices as driven by supply and demand fundamentals. Key risks include unforeseen supply disruptions that could drive prices higher from current futures curve expectations.
The document summarizes recent research by the U.S. Energy Information Administration (EIA) including: growth in light sweet crude oil production in the U.S.; an updated study on increased liquefied natural gas exports and their effects on domestic energy markets; and a study on the relationship between gasoline and crude oil prices. It then provides details on U.S. tight oil and shale gas production trends, projections for U.S. natural gas production and consumption, the potential for the U.S. to become a net exporter of natural gas, and considerations around crude oil production projections beyond the next few years given different resource and technology assumptions.
US oil and gas reserves and production study 2018Nihad Azizli
The US oil and gas reserves and production study analyzed 50 major companies and found:
1) Capital expenditures in 2017 totaled $114.5 billion, a 32% increase from 2016, with development and exploration spending increasing the most.
2) Revenues in 2017 were $135.9 billion, up 32% from 2016, due to improved commodity prices. Net income was $17.2 billion after losses in prior years.
3) US oil production increased 5% in 2017 while gas production declined 7% due to asset sales. Reserves saw net upward revisions for the first time in the study period.
The Bord Gáis Energy Index was unchanged in May as rising Brent crude oil prices offset falling wholesale gas and electricity prices. Brent crude remained around $110 per barrel due to geopolitical tensions and concerns about spare global oil capacity over the summer. Wholesale gas prices fell to 31⁄2 year lows due to high stock levels and mild winter demand. Electricity prices dropped 4% as gas-fired generation dominates Irish supply. The Euro weakened against the dollar and pound on expectations the ECB will cut rates in June to boost inflation and growth.
This document from the Congressional Research Service provides background information on unconventional gas shale resources in the United States, with a focus on the Barnett and Marcellus Shale formations. It discusses the natural gas resource potential, development technologies such as drilling and hydraulic fracturing, leasing and regulatory issues, and environmental concerns related to water usage and potential impacts. The document contains technical descriptions to help Congress understand the issues associated with gas shale development.
The Executive Summary for the IEA's 2015 Annual Medium-Term Gas Market Report. This year's report predicts global demand for natural gas will slightly decrease to 2% per year, down from 2014's prediction of 2.3% per year. Why? Asia's demand for natgas will decrease over the next five years. Implication: Some U.S. LNG export facilities will get delayed or even canceled.
The Bord Gáis Energy Index fell 9% in November 2014 to its lowest level in over four years as global oil prices continued to plunge. The document discusses factors contributing to declining oil prices such as increased North American oil production, OPEC's decision not to cut production, and geopolitical issues. It also summarizes trends in natural gas and coal markets, noting prices declines there as well driven by oversupply and weaker demand.
- In December 2015, the Bord Gáis Energy Index fell 13% as wholesale prices for Brent crude oil, UK gas, European coal, and Irish electricity all recorded losses. The index stood at another record low of 79.
- Prices continued to decline across the board, with oil falling 19% to close below $38/barrel for the first time in a decade due to oversupply and weak demand. Other fuels like UK gas and European coal also recorded losses.
- The euro strengthened against the US dollar and British pound over the month, exacerbating losses in the energy index which is adjusted for currency movements.
U.S. Energy Information Administration _ Oil and Gas Sept 2014Dmitry Tseitlin
This document summarizes a presentation given by Adam Sieminski, Administrator of the U.S. Energy Information Administration (EIA), to the North Dakota Petroleum Council on September 24, 2014. The presentation provides an overview of current and projected trends in U.S. and North American energy supply and demand, including slow growth in overall U.S. energy use, increased U.S. oil and natural gas production from shale resources, the U.S. becoming a net exporter of petroleum products, and projected increases in both U.S. oil and natural gas production through 2040 under reference and high resource cases.
The sustainability of trading profits has always been questioned. Volatility has returned to pre-crisis levels and, absent more disruption, the size of the opportunity will shrink.
See this week's edition of EY Price Point
The document is BP's 2018 Energy Outlook, which explores scenarios for the global energy transition out to 2040. It considers a range of scenarios that differ in their assumptions about policies, technologies, and energy market developments. The main scenario, called Evolving Transition, sees global energy demand growing by one third by 2040 as prosperity increases worldwide. Renewable energy is the fastest growing source and accounts for 40% of the increase in primary energy. However, carbon emissions continue rising, indicating more action is needed to achieve climate goals.
CBO: The Economic and Budgetary Effects of Producing Oil and Natural Gas from...Marcellus Drilling News
The document summarizes the economic and budgetary effects of shale oil and gas production in the United States. It finds that shale development has significantly increased domestic production of natural gas and oil, lowering their prices. In the near term, shale development is estimated to increase GDP by about two-thirds of 1 percent in 2020 and 1 percent in 2040. It also increases federal tax revenues, estimated to be about three-quarters of 1 percent or $35 billion higher in 2020 and 1 percent higher in 2040. Federal royalties from shale production on federal lands are expected to be about $300 million annually by 2020.
Enterprise Products Partners L.P. is the largest publicly traded energy partnership in the United States. They operate over 51,000 miles of pipelines transporting natural gas, NGLs, crude oil and petrochemicals. Analysts expect EPD to benefit from increased domestic energy production and have ongoing capital projects. Based on a discounted cash flow valuation, analysts value EPD at $41.43 and have placed a BUY rating due to the current price of $37.40 being undervalued.
Between May 2011 and May 2013, the amount of natural gas flared in North Dakota grew 2.5 times from approximately 106,000 to 266,000 Mcf per day. Over the course of 2012, natural gas flaring in North Dakota emitted 4.5 million metric tons of carbon dioxide, equivalent to the annual emissions of approximately one million cars. Additionally, over the course of 2012, North Dakota oil and gas producers flared more than $1 billion worth of natural gas.
ICF International presents a post–American Recovery and Reinvestment Act (ARRA) outlook for the alternative fuel vehicles (AFV) industry and shares new trends related to plug-in electric, biofuel, natural gas, propane, and hydrogen-fueled vehicles.
The presentation outlines the top five AFV trends as identified by ICF:
1. Demand in the medium- and heavy-duty sectors for natural gas and propane vehicles
2. Strong growth in plug-in electric vehicles supported by state and utility incentives
3. Innovation and growth in biofuels resulting from compliance markets
4. Increased awareness and adoption of third-party leasing and ownership models for alternative fueling infrastructure
5. New approaches for fleet management
To learn more, view the recording of the webinar: http://www.icfi.com/insights/webinars/2014/recording-us-alternative-fuel-advanced-vehicle-trends
The Bord Gáis Energy Index for September 2014 saw significant increases in the wholesale prices of Natural Gas (21%) and Electricity (17%). This was mostly offset by a fall in Brent Crude Oil as the Bord Gáis Energy Index rises by 3%.
This document provides an overview of the petrochemical market outlook for the Americas in the first half of 2017. Major themes include new ethylene capacity coming online in the US Gulf Coast region, which is expected to lengthen already long ethylene and propylene markets. Upcoming turnarounds in the first quarter of 2017 may provide temporary pricing support. However, downward pressure on prices is expected as the new capacity expansions start up in the second quarter and beyond. World-scale additions in polyethylene and methanol capacity are also noted as factors that will impact markets in the second half of the year. The political environment under the new Trump administration and economic conditions in Latin America are highlighted as additional influences to monitor.
Lifting a 40 Year Ban on U.S. Crude Oil ExportsBenson_t
The document discusses the impacts of lifting the US ban on crude oil exports. It notes that removing the ban would have positive macroeconomic effects for the US by increasing GDP, employment, and domestic crude oil production. US refineries would see lower margins, as exports would align domestic refinery configurations with global crude prices. The global oil market would also benefit from more efficient refining operations and increased supply and demand for crude oil and refined products respectively.
The Guinness Global Energy Report for March 2017 provides the following highlights:
1) Oil prices were flat in February as signs of good OPEC compliance with production cuts were offset by rising US inventories due to high imports.
2) US natural gas prices fell as mild winter weather reduced heating demand, while the market remains structurally undersupplied.
3) Energy stocks underperformed the broader market in February as the MSCI World Energy Index fell 2.0% compared to a 2.8% rise in the MSCI World Index.
The U.S. Energy Information Administration's Short-Term Energy Outlook issued Nov. 10, 2015. The STEO looks at the recent history of oil, natural gas, coal, renewables, etc., and predicts what will happen in the coming months/up to one year out. This report predicts the Henry Hub natural gas spot price to average $2.59/million British thermal units (MMBtu) this winter (October 2015–March 2016) compared with $3.35/MMBtu last winter.
The document summarizes the key points of the Iran nuclear deal reached between Iran and six world powers. The deal will lift sanctions on Iran in exchange for curbing its nuclear program. This will open up Iranian oil reserves to the global market, estimated to increase supply by 500,000 barrels per day. It will also allow Iran to sell natural gas. The increased supply of oil and gas from Iran is expected to put downward pressure on prices. While the deal could face opposition, it represents a major shift in opening up Iran's economy after years of isolation.
QEP Resources is an oil and gas exploration and production company with operations in the northern and southern United States. The company's profitability is highly dependent on oil and gas prices, which have declined significantly in recent years. A discounted cash flow model values the company at $17.76 per share, suggesting an 11% upside from the current stock price of $16.02. However, the recommendation is a hold due to uncertainty around future commodity prices as driven by supply and demand fundamentals. Key risks include unforeseen supply disruptions that could drive prices higher from current futures curve expectations.
The document summarizes recent research by the U.S. Energy Information Administration (EIA) including: growth in light sweet crude oil production in the U.S.; an updated study on increased liquefied natural gas exports and their effects on domestic energy markets; and a study on the relationship between gasoline and crude oil prices. It then provides details on U.S. tight oil and shale gas production trends, projections for U.S. natural gas production and consumption, the potential for the U.S. to become a net exporter of natural gas, and considerations around crude oil production projections beyond the next few years given different resource and technology assumptions.
US oil and gas reserves and production study 2018Nihad Azizli
The US oil and gas reserves and production study analyzed 50 major companies and found:
1) Capital expenditures in 2017 totaled $114.5 billion, a 32% increase from 2016, with development and exploration spending increasing the most.
2) Revenues in 2017 were $135.9 billion, up 32% from 2016, due to improved commodity prices. Net income was $17.2 billion after losses in prior years.
3) US oil production increased 5% in 2017 while gas production declined 7% due to asset sales. Reserves saw net upward revisions for the first time in the study period.
The Bord Gáis Energy Index was unchanged in May as rising Brent crude oil prices offset falling wholesale gas and electricity prices. Brent crude remained around $110 per barrel due to geopolitical tensions and concerns about spare global oil capacity over the summer. Wholesale gas prices fell to 31⁄2 year lows due to high stock levels and mild winter demand. Electricity prices dropped 4% as gas-fired generation dominates Irish supply. The Euro weakened against the dollar and pound on expectations the ECB will cut rates in June to boost inflation and growth.
This document from the Congressional Research Service provides background information on unconventional gas shale resources in the United States, with a focus on the Barnett and Marcellus Shale formations. It discusses the natural gas resource potential, development technologies such as drilling and hydraulic fracturing, leasing and regulatory issues, and environmental concerns related to water usage and potential impacts. The document contains technical descriptions to help Congress understand the issues associated with gas shale development.
The Executive Summary for the IEA's 2015 Annual Medium-Term Gas Market Report. This year's report predicts global demand for natural gas will slightly decrease to 2% per year, down from 2014's prediction of 2.3% per year. Why? Asia's demand for natgas will decrease over the next five years. Implication: Some U.S. LNG export facilities will get delayed or even canceled.
The Bord Gáis Energy Index fell 9% in November 2014 to its lowest level in over four years as global oil prices continued to plunge. The document discusses factors contributing to declining oil prices such as increased North American oil production, OPEC's decision not to cut production, and geopolitical issues. It also summarizes trends in natural gas and coal markets, noting prices declines there as well driven by oversupply and weaker demand.
- In December 2015, the Bord Gáis Energy Index fell 13% as wholesale prices for Brent crude oil, UK gas, European coal, and Irish electricity all recorded losses. The index stood at another record low of 79.
- Prices continued to decline across the board, with oil falling 19% to close below $38/barrel for the first time in a decade due to oversupply and weak demand. Other fuels like UK gas and European coal also recorded losses.
- The euro strengthened against the US dollar and British pound over the month, exacerbating losses in the energy index which is adjusted for currency movements.
U.S. Energy Information Administration _ Oil and Gas Sept 2014Dmitry Tseitlin
This document summarizes a presentation given by Adam Sieminski, Administrator of the U.S. Energy Information Administration (EIA), to the North Dakota Petroleum Council on September 24, 2014. The presentation provides an overview of current and projected trends in U.S. and North American energy supply and demand, including slow growth in overall U.S. energy use, increased U.S. oil and natural gas production from shale resources, the U.S. becoming a net exporter of petroleum products, and projected increases in both U.S. oil and natural gas production through 2040 under reference and high resource cases.
The sustainability of trading profits has always been questioned. Volatility has returned to pre-crisis levels and, absent more disruption, the size of the opportunity will shrink.
See this week's edition of EY Price Point
The document is BP's 2018 Energy Outlook, which explores scenarios for the global energy transition out to 2040. It considers a range of scenarios that differ in their assumptions about policies, technologies, and energy market developments. The main scenario, called Evolving Transition, sees global energy demand growing by one third by 2040 as prosperity increases worldwide. Renewable energy is the fastest growing source and accounts for 40% of the increase in primary energy. However, carbon emissions continue rising, indicating more action is needed to achieve climate goals.
CBO: The Economic and Budgetary Effects of Producing Oil and Natural Gas from...Marcellus Drilling News
The document summarizes the economic and budgetary effects of shale oil and gas production in the United States. It finds that shale development has significantly increased domestic production of natural gas and oil, lowering their prices. In the near term, shale development is estimated to increase GDP by about two-thirds of 1 percent in 2020 and 1 percent in 2040. It also increases federal tax revenues, estimated to be about three-quarters of 1 percent or $35 billion higher in 2020 and 1 percent higher in 2040. Federal royalties from shale production on federal lands are expected to be about $300 million annually by 2020.
Enterprise Products Partners L.P. is the largest publicly traded energy partnership in the United States. They operate over 51,000 miles of pipelines transporting natural gas, NGLs, crude oil and petrochemicals. Analysts expect EPD to benefit from increased domestic energy production and have ongoing capital projects. Based on a discounted cash flow valuation, analysts value EPD at $41.43 and have placed a BUY rating due to the current price of $37.40 being undervalued.
ACCF Letter to DOE Sec. Ernest Moniz Requesting Expedited Approval of LNG Exp...Marcellus Drilling News
A letter from the American Council for Capital Formation to Dept. of Energy Sec. Ernest Moniz making the case for more liquefied natural gas (LNG) exports. The DOE under Moniz is charged with approving exports of energy to countries with no free trade agreement with the U.S. They have approved 5 such facilities, but another 21 permits have been filed. Anti-drillers don't want more exports. ACCF provides Moniz with compelling reasons to push forward, quickly, with approvals for more of the LNG export facilities.
Mercer Capital's Value Focus: Energy Industry | Q3 2021 | Segment: BakkenMercer Capital
Mercer Capital's Energy Industry newsletter provides perspective on valuation issues. Each newsletter also typically includes a macroeconomic trends, industry trends, and guideline public company metrics.
The document provides a weekly update on the global oil and gas markets. It discusses how the upcoming US presidential election is unlikely to significantly impact near-term energy markets. Oil, gas, and equity markets continue looking past current economic weakness as demand recovers slower than expected. US natural gas prices have risen due to declining production and increasing demand from LNG exports and industry. Jet fuel demand remains weak as air travel has not recovered, impacting oil demand forecasts through 2021. The document also provides brief details on EY as an organization focused on the oil and gas sector.
This document summarizes a report on the economic impacts of the shale gas and tight oil boom in the United States. It finds that while the boom has increased oil and gas production and employment, some states have become more economically reliant on the energy industry and vulnerable to price declines. A 25% increase in oil prices would lead to over 550,000 job losses nationwide but benefit states like North Dakota, Oklahoma and Wyoming that have significant fossil fuel industries. However, these states' economies could be hurt substantially if prices decline sharply as they did in the 1980s. The boom has made some states less economically diversified, leaving them vulnerable to volatility in energy markets.
The document discusses the positive economic impacts of the U.S. energy renaissance driven by increased production of shale gas and tight oil. It notes that this energy boom has led to over 1 million new jobs, billions in tax revenues, energy independence and security, lower energy costs for consumers and businesses, and reduced greenhouse gas emissions. The low natural gas prices are fueling a manufacturing resurgence in the U.S. and billions in new investment. Overall the energy renaissance presents many reasons for economic optimism going forward.
- Noble Energy reported financial and operational results for Q4 2015, with adjusted net income of $191 million. However, reported net loss was $2.0 billion due to non-cash impairments and other adjustments.
- Q4 sales volumes were a record 422 MBoe/d, with US volumes of 295 MBoe/d and international volumes of 127 MBoe/d.
- Capital expenditures for Q4 were $527 million, below guidance and less than discretionary cash flow and cash from operations. Noble exited Q4 with $5 billion in liquidity including cash.
The US Coal Crash – Evidence for Structural Change (PDF) finds that, in the last few years, US coal markets have been pounded by a combination of cheaper renewables, energy efficiency measures, increasing construction costs and a rash of legal challenges, as well as the rise of shale gas.
Global energy consumption grew at an accelerated rate in 2013 despite stagnant economic growth. Consumption increased for all fuels except nuclear power and reached record levels. Emerging economies accounted for 80% of growth, led by China, but growth was below the 10-year average in these countries. The US saw the largest increase in oil production in the world and offset supply disruptions elsewhere. Natural gas consumption growth was below average globally except in North America. Coal consumption grew the fastest of the fossil fuels.
Global energy consumption grew at an accelerated rate in 2013 despite weak economic growth worldwide. Consumption increased for all fuels, led by growth in the US, China, and other emerging economies. Oil production did not keep pace with rising consumption, and prices remained high despite declining slightly from 2012 levels. The US saw the largest oil production increase in history due to growth in tight oil. Coal consumption rose the most of the major fuels as its competitive position strengthened. Renewable energy continued robust growth but from a low base.
Global energy consumption grew 2.3% in 2013, accelerating from 2012 but remaining below the 10-year average. Emerging economies accounted for 80% of growth, though their growth was below average. The US saw the largest increase in oil production in the world and offset supply disruptions elsewhere. Natural gas consumption growth was below average globally and in all regions except North America. Coal consumption grew the fastest of the fossil fuels. Renewable energy continued robust growth but from a low base.
A white paper from America's Natural Gas Alliance (ANGA) encouraging the Obama Dept. of Energy to get off its collective rear-end and approve a host of proposed LNG export terminals that it has delayed approving. ANGA says this is an opportunity that if lost, we won't see again.
“US Shale Gas Industry Analysis” Report Highlight:
US Shale Gas Industry Overview
Shale Gas Exploration, Technical and Technology Aspects
US Shale Gas Reserve Analysis: Technical & Recoverable Reserves
Investments in Shale Gas Exploration & Production
US Shale Gas Sector Dynamics
Shale Boom to Drive LNG Export Projects
A study released by the analysts at consulting firm Deloitte that looks at the top issues facing the oil and gas sector. The study finds that within the next 5-6 years surging shale oil and natural gas production in the U.S. will "cut deeply" into OPEC's influence on setting world oil prices.
Aranca views - Shale Gas - the Next Cradle of Energy?Aranca
As of 2013, recoverable shale gas resources account for nearly one third of the total gas energy resources of the world. The article highlights US, Europe, China, Canada & GCC region's shale gas statistics, impacts & consumption.
This dissertation examines shale gas and energy security policy issues in the United States from domestic and international perspectives. It provides background on the shale gas revolution in the U.S. enabled by hydraulic fracturing technology. The document outlines topics to be discussed, including defining energy security, analyzing U.S. natural gas policy challenges, and considering foreign perspectives. It aims to understand the U.S. energy security policy approach to shale gas development and its broader implications.
API/Wood Mackenzie Study Showing Obama Energy/Environment Regulations Leading...Marcellus Drilling News
A study released in June 2015 by the American Petroleum Institute titled "A Comparison of US Oil and Natural Gas Policies: Pro-development Policies vs. Proposed Regulatory Constraints". The study compares governmental energy policies--the ones that promote growth in jobs and the economy, and the ones that don't.
Navigant: North American Natural Gas Market Outlook - Year-End 2014: A View t...Marcellus Drilling News
A report issued by global consulting firm Navigant. The report says U.S. natural gas supply will increase from 72 billion cubic feet per day (Bcf/d) in 2015 to nearly 110 Bcf/d by 2035. Other key insights.
U.S. Petrochemical Industry Future - Upstream - Crude Oil - Logic Versus Fai...Bruce LaCour
- U.S. crude oil production fell from 1970 to a low in 2008 not seen since 1950, while gasoline prices rose sharply from 1995 to 2005 and 2008, reducing driving.
- The shale oil boom, starting in 2006 in North Dakota's Bakken formation and expanding to Texas' Eagle Ford shale in 2008, increased U.S. oil production and made the U.S. a top producer again. However, much Eagle Ford production was condensate, not crude oil.
- While the shale boom promised U.S. energy independence and hundreds of thousands of jobs, low oil prices since 2015 have called the sustainability of this production into question, as drillers face mounting debt and may not be able to
Similar to CRS: U.S. Crude Oil and Natural Gas Production in Federal and Non-Federal Areas (20)
The document summarizes five key facts about the recovery of US shale oil production:
1) Rig counts have increased by 90% since bottoming out in May 2016 and are up 30% year-over-year, signaling increased drilling and production capacity.
2) While decline rates remain steep, production profiles have increased substantially due to technological advances, meaning aggregate supply will be stronger.
3) Preliminary data shows that net new shale supply turned positive in December 2016 for the first time since March 2015, recovering just 7 months after rig counts increased.
4) Increased drilling activity is supported by a large stock of drilled but uncompleted wells, demonstrating the recovery and expansion of the shale sector.
5)
Quarterly legislative action update: Marcellus and Utica shale region (4Q16)Marcellus Drilling News
A quarterly update from the legal beagles at global law firm Norton Rose Fulbright. A quarterly legislative action update for the second quarter of 2016 looking at previously laws acted upon, and new laws introduced, affecting the oil and gas industry in Pennsylvania, Ohio and West Virginia.
An update from Spectra Energy on their proposed $3 billion project to connect four existing pipeline systems to flow more Marcellus/Utica gas to New England. In short, Spectra has put the project on pause until mid-2017 while it attempts to get new customers signed.
A letter from Rover Pipeline to the Federal Energy Regulatory Commission requesting the agency issue the final certificate that will allow Rover to begin tree-clearing and construction of the 511-mile pipeline through Pennsylvania, West Virginia, Ohio and Michigan. If the certificate is delayed beyond the end of 2016, it will delay the project an extra year due to tree-clearing restrictions (to accommodate federally-protected bats).
DOE Order Granting Elba Island LNG Right to Export to Non-FTA CountriesMarcellus Drilling News
An order issued by the U.S. Dept. of Energy that allows the Elba Island LNG export facility to export LNG to countries with no free trade agreement with the U.S. Countries like Japan and India have no FTA with our country (i.e. friendly countries)--so this is good news indeed. Although the facility would have operated by sending LNG to FTA countries, this order opens the market much wider.
A study released in December 2016 by the London School of Economics, titled "On the Comparative Advantage of U.S. Manufacturing: Evidence from the Shale Gas Revolution." While America has enough shale gas to export plenty of it, exporting it is not as economic as exporting oil due to the elaborate processes to liquefy and regassify natural gas--therefore a lot of the gas stays right here at home, making the U.S. one of (if not the) cheapest places on the planet to establish manufacturing plants, especially for manufacturers that use natural gas and NGLs (natural gas liquids). Therefore, manufacturing, especially in the petrochemical sector, is ramping back up in the U.S. For every two jobs created by fracking, another one job is created in the manufacturing sector.
Letter From 24 States Asking Trump & Congress to Withdraw the Unlawful Clean ...Marcellus Drilling News
A letter from the attorneys general from 24 of the states opposed to the Obama Clean Power Plan to President-Elect Trump, RINO Senate Majority Leader Mitch McConnel and RINO House Speaker Paul Ryan. The letter asks Trump to dump the CPP on Day One when he takes office, and asks Congress to adopt legislation to prevent the EPA from such an egregious overreach ever again.
Report: New U.S. Power Costs: by County, with Environmental ExternalitiesMarcellus Drilling News
Natural gas and wind are the lowest-cost technology options for new electricity generation across much of the U.S. when cost, public health impacts and environmental effects are considered. So says this new research paper released by The University of Texas at Austin. Researchers assessed multiple generation technologies including coal, natural gas, solar, wind and nuclear. Their findings are depicted in a series of maps illustrating the cost of each generation technology on a county-by-county basis throughout the U.S.
Annual report issued by the U.S. Energy Information Administration showing oil and natural gas proved reserves, in this case for 2015. These reports are issued almost a year after the period for which they report. This report shows proved reserves for natural gas dropped by 64.5 trillion cubic feet (Tcf), or 16.6%. U.S. crude oil and lease condensate proved reserves also decreased--from 39.9 billion barrels to 35.2 billion barrels (down 11.8%) in 2015. Proved reserves are calculated on a number of factors, including price.
The document is a report from the U.S. Energy Information Administration analyzing oil and gas production from seven regions in the U.S. It includes charts and tables showing historical and projected production levels of oil and gas from each region from 2008 to 2017, as well as metrics like the average production per rig. The regions - Bakken, Eagle Ford, Haynesville, Marcellus, Niobrara, Permian, and Utica - accounted for 92% of domestic oil production growth and all domestic natural gas production growth from 2011-2014.
Velocys is the manufacturer of gas-to-liquids (GTL) plants that convert natural gas (a hyrdocarbon) into other hydrocarbons, like diesel fuel, gasoline, and even waxes. This PowerPoint presentation lays out the Velocys plan to get the company growing. GTL plants have not (so far) taken off in the U.S. Velocys hopes to change that. They specialize in small GTL plants.
PA DEP Revised Permit for Natural Gas Compression Stations, Processing Plants...Marcellus Drilling News
In January 2016, Gov. Wolf announced the DEP would revise its current general permit (GP-5) to update the permitting requirements for sources at natural gas compression, processing, and transmission facilities. This is the revised GP-5.
PA DEP Permit for Unconventional NatGas Well Site Operations and Remote Piggi...Marcellus Drilling News
In January 2016, PA Gov. Wolf announced the Dept. of Environmental Protection would develop a general permit for sources at new or modified unconventional well sites and remote pigging stations (GP-5A). This is the proposed permit.
Onerous new regulations for the Pennsylvania Marcellus Shale industry proposed by the state Dept. of Environmental Protection. The new regs will, according to the DEP, help PA reduce so-called fugitive methane emissions and some types of air pollution (VOCs). This is liberal Gov. Tom Wolf's way of addressing mythical man-made global warming.
This document provides an overview of the natural gas market in the Northeast United States, including New England, New York, New Jersey, and Pennsylvania. It details statistics on gas customers, consumption, infrastructure like pipelines and storage, and production. A key point is that the development of the Marcellus Shale in Pennsylvania has significantly increased domestic gas production in the region and reduced its reliance on other supply basins and imports.
The Pennsylvania Public Utility Commission responded to each point raised in a draft copy of the PA Auditor General's audit of how Act 13 impact fee money, raised from Marcellus Shale drillers, gets spent by local municipalities. The PUC says it's not their job to monitor how the money gets spent, only in how much is raised and distributed.
Pennsylvania Public Utility Commission Act 13/Impact Fees Audit by PA Auditor...Marcellus Drilling News
A biased look at how 60% of impact fees raised from PA's shale drilling are spent, by the anti-drilling PA Auditor General. He chose to ignore an audit of 40% of the impact fees, which go to Harrisburg and disappear into the black hole of Harrisburg spending. The Auditor General claims, without basis in fact, that up to 24% of the funds are spent on items not allowed under the Act 13 law.
The final report from the Pennsylvania Dept. of Environmental Protection that finds, after several years of testing, no elevated levels of radiation from acid mine drainage coming from the Clyde Mine, flowing into Ten Mile Creek. Radical anti-drillers tried to smear the Marcellus industry with false claims of illegal wastewater dumping into the mine, with further claims of elevated radiation levels in the creek. After years of testing, the DEP found those allegations to be false.
FERC Order Denying Stay of Kinder Morgan's Broad Run Expansion ProjectMarcellus Drilling News
The Federal Energy Regulatory Commission denied a request to stay the authorization of Tennessee Gas Pipeline Company's Broad Run Expansion Project. The Commission found that the intervenors requesting the stay did not demonstrate they would suffer irreparable harm if the project proceeded. Specifically, the Commission determined that the environmental impacts to forest and a nearby animal rehabilitation center would be insignificant. Additionally, conditioning authorization on future permits did not improperly encroach on state authority. Therefore, justice did not require granting a stay.
Sixth Circuit Court of Appeals Decision in Harper v Muskingum Watershed Conse...Marcellus Drilling News
Anti-drilling landowners (backed by Food & Water Watch) claimed the Muskingum Watershed Conservancy District had violated the deed to the land it owns by leasing that land for Utica Shale drilling. The Sixth Circuit dismissed the case. The anti-drillers lost.
#WenguiGuo#WashingtonFarm Guo Wengui Wolf son ambition exposed to open a far...rittaajmal71
Since fleeing to the United States in 2014, Guo Wengui has founded a number of projects in the United States, such as GTV Media Group, GTV private equity, farm loan project, G Club Operations Co., LTD., and Himalaya Exchange.
16062024_First India Newspaper Jaipur.pdfFIRST INDIA
Find Latest India News and Breaking News these days from India on Politics, Business, Entertainment, Technology, Sports, Lifestyle and Coronavirus News in India and the world over that you can't miss. For real time update Visit our social media handle. Read First India NewsPaper in your morning replace. Visit First India.
CLICK:- https://firstindia.co.in/
#First_India_NewsPaper
Federal Authorities Urge Vigilance Amid Bird Flu Outbreak | The Lifesciences ...The Lifesciences Magazine
Federal authorities have advised the public to remain vigilant but calm in response to the ongoing bird flu outbreak of highly pathogenic avian influenza, commonly known as bird flu.
12062024_First India Newspaper Jaipur.pdfFIRST INDIA
Find Latest India News and Breaking News these days from India on Politics, Business, Entertainment, Technology, Sports, Lifestyle and Coronavirus News in India and the world over that you can't miss. For real time update Visit our social media handle. Read First India NewsPaper in your morning replace. Visit First India.
CLICK:- https://firstindia.co.in/
#First_India_NewsPaper
ग्रेटर मुंबई के नगर आयुक्त को एक खुले पत्र में याचिका दायर कर 540 से अधिक मुंबईकरों ने सभी अवैध और अस्थिर होर्डिंग्स, साइनबोर्ड और इलेक्ट्रिक साइनेज को तत्काल हटाने और 13 मई, 2024 की शाम को घाटकोपर में अवैध होर्डिंग के गिरने की विनाशकारी घटना के बाद अपराधियों के खिलाफ सख्त कार्रवाई की मांग की है, जिसमें 17 लोगों की जान चली गई और कई निर्दोष लोग गंभीर रूप से घायल हो गए।
केरल उच्च न्यायालय ने 11 जून, 2024 को मंडला पूजा में भाग लेने की अनुमति मांगने वाली 10 वर्षीय लड़की की रिट याचिका को खारिज कर दिया, जिसमें सर्वोच्च न्यायालय की एक बड़ी पीठ के समक्ष इस मुद्दे की लंबित प्रकृति पर जोर दिया गया। यह आदेश न्यायमूर्ति अनिल के. नरेंद्रन और न्यायमूर्ति हरिशंकर वी. मेनन की खंडपीठ द्वारा पारित किया गया
Slide deck with charts from our Digital News Report 2024, the most comprehensive exploration of news consumption habits around the world, based on survey data from more than 95,000 respondents across 47 countries.
लालू यादव की जीवनी LALU PRASAD YADAV BIOGRAPHYVoterMood
Discover the life and times of Lalu Prasad Yadav with a comprehensive biography in Hindi. Learn about his early days, rise in politics, controversies, and contribution.
Recent years have seen a disturbing rise in violence, discrimination, and intolerance against Christian communities in various Islamic countries. This multifaceted challenge, deeply rooted in historical, social, and political animosities, demands urgent attention. Despite the escalating persecution, substantial support from the Western world remains lacking.
Youngest c m in India- Pema Khandu BiographyVoterMood
Pema Khandu, born on August 21, 1979, is an Indian politician and the Chief Minister of Arunachal Pradesh. He is the son of former Chief Minister of Arunachal Pradesh, Dorjee Khandu. Pema Khandu assumed office as the Chief Minister in July 2016, making him one of the youngest Chief Ministers in India at that time.
13062024_First India Newspaper Jaipur.pdfFIRST INDIA
Find Latest India News and Breaking News these days from India on Politics, Business, Entertainment, Technology, Sports, Lifestyle and Coronavirus News in India and the world over that you can't miss. For real time update Visit our social media handle. Read First India NewsPaper in your morning replace. Visit First India.
CLICK:- https://firstindia.co.in/
#First_India_NewsPaper
projet de traité négocié à Istanbul (anglais).pdfEdouardHusson
Ceci est le projet de traité qui avait été négocié entre Russes et Ukrainiens à Istanbul en mars 2022, avant que les Etats-Unis et la Grande-Bretagne ne détournent Kiev de signer.
15062024_First India Newspaper Jaipur.pdfFIRST INDIA
Find Latest India News and Breaking News these days from India on Politics, Business, Entertainment, Technology, Sports, Lifestyle and Coronavirus News in India and the world over that you can't miss. For real time update Visit our social media handle. Read First India NewsPaper in your morning replace. Visit First India.
CLICK:- https://firstindia.co.in/
#First_India_NewsPaper
CRS: U.S. Crude Oil and Natural Gas Production in Federal and Non-Federal Areas
1. U.S. Crude Oil and Natural Gas Production in
Federal and Non-Federal Areas
Marc Humphries
Specialist in Energy Policy
February 28, 2013
Congressional Research Service
7-5700
www.crs.gov
R42432
CRS Report for Congress
Prepared for Members and Committees of Congress
2. U.S. Crude Oil and Natural Gas Production in Federal and Non-Federal Areas
Summary
In 2012, oil prices ranged from $80 to $110 per barrel (West Texas Intermediate spot price) and
remain high in early 2013. Congress is faced with proposals designed to increase domestic energy
supply, enhance security, and/or amend the requirements of environmental statutes. A key
question in this discussion is how much oil and gas is produced each year and how much of that
comes from federal and non-federal areas. On non-federal lands, there were modest fluctuations
in oil production from fiscal years (FY) 2008-2010, then a significant increase from FY2010 to
FY2012 increasing total U.S. oil production by about 1.1 million barrels per day over FY2007
production levels. All of the increase from FY2007 to FY2012 took place on non-federal lands,
and the federal share of total U.S. crude oil production fell by about seven percentage points.
Natural gas prices, on the other hand, have remained low for the past several years, allowing gas
to become much more competitive with coal for power generation. The shale gas boom has
resulted in rising supplies of natural gas. Overall, U.S. natural gas production rose by four trillion
cubic feet (tcf) or 20% since 2007, while production on federal lands (onshore and offshore) fell
by about 33% and production on non-federal lands grew by 40%. The big shale gas plays are
primarily on non-federal lands and are attracting a significant portion of investment for natural
gas development.
The number of producing acres may or may not be a function of how many acres are leased, and
the amount of acres leased may or may not correlate to the amount of production, but in recent
years, some members of Congress have proposed a $4/acre lease fee for non-producing leases.
This proposal grew out of the efforts to open more public land and water (offshore) for oil and
gas drilling and development when gasoline prices spiked in 2006-2008. Some in Congress noted
that there were many leases they believed were not being developed in a timely fashion, while at
the same time, others in Congress were pushing for greater access to areas off-limits (such as the
Arctic National Wildlife Refuge (ANWR) and areas under a leasing moratoria offshore). Higher
rents for offshore leases were imposed by the Secretary of the Interior in 2009 to discourage
holding unused leases and to move more leases into production if possible.
Another major issue that the 113th Congress may seek to address is streamlining the processing of
applications for permits to drill (APDs). Some members contend that this would be one way to
help boost energy production on federal lands. After a lease has been obtained, either
competitively or non-competitively, an application for a permit to drill (APD) must be approved
for each oil and gas well. Despite the new timeline for review (under the Energy Policy Act of
2005, P.L. 109-58), it took an average of 307 days for all parties to process (approve or deny) an
APD in 2011, up from an average of 218 days in 2006. The difference, however, is that in 2006 it
took the BLM an average of 127 days to process an APD, while in 2011 it took BLM 71 days. In
2006, the industry took an average of 91 days to complete an APD, but in 2011, industry took 236
days. The BLM stated in its FY2012 and FY2013 budget justifications that overall processing
times per APD have increased because of the complexity of the process.
Congressional Research Service
3. U.S. Crude Oil and Natural Gas Production in Federal and Non-Federal Areas
Contents
Introduction...................................................................................................................................... 1
U.S. Crude Oil Production: Federal and Non-Federal Areas (Fiscal Year) ..................................... 1
U.S. Natural Gas Production: Federal and Non-Federal Areas (Fiscal Year) .................................. 3
EIA Projections.......................................................................................................................... 5
Oil and Natural Gas Lease Data for Federal Lands ................................................................... 5
Producing Acres .................................................................................................................. 6
Applications for Permits to Drill (APDs) ............................................................................ 7
Streamline Pilot ................................................................................................................... 9
Concerns .............................................................................................................................. 9
Conclusions ....................................................................................................................... 10
Figures
Figure 1. U.S. Oil and Lease Condensate Production: Federal and Non-Federal Areas,
FY2007-2012 ................................................................................................................................ 3
Figure 2. U.S. Natural Gas Production: Federal and Non-Federal Areas FY2007-FY2012 ........... 4
Tables
Table 1. U.S. Crude Oil Production: Federal and Non-Federal Areas FY2007-FY2012................. 2
Table 2. U.S. Natural Gas Production: Federal and Non-Federal Areas FY2007-FY2012 ............ 4
Table 3. EIA Oil Production Projections.......................................................................................... 5
Table 4. EIA Natural Gas Production Projections ........................................................................... 5
Table 5. Oil and Gas Lease Data for Federal Lands, 2012 .............................................................. 6
Table 6. Onshore Drilling Permits (FY2006-FY2011) .................................................................... 8
Contacts
Author Contact Information........................................................................................................... 10
Congressional Research Service
4. U.S. Crude Oil and Natural Gas Production in Federal and Non-Federal Areas
Introduction1
In 2012, oil prices ranged from $80 to $110 per barrel (West Texas Intermediate spot price) and
remain high (above $90/barrel) in early 2013. A number of proposals designed to increase
domestic energy supply, enhance security, and/or amend the requirements of environmental
statutes are before the 113th Congress. A key question in this discussion is how much oil and gas
is produced in the United States each year and how much of that comes from federal versus non-
federal areas. Oil production has fluctuated on both federal and non-federal lands over the past
five fiscal years. On non-federal lands, there were modest fluctuations in oil production from
fiscal years (FY) 2008-2010, then a larger increase from FY2010 to FY2012, increasing total U.S.
oil production by about 1.1 million barrels per day over FY2007 production levels. All of the
increased production from FY2007 to FY2012 took place on non-federal lands, causing the
federal share of total U.S. crude oil production to fall by about seven percentage points (see Table
1).
Natural gas prices, on the other hand, have remained low for the past several years, allowing gas
to become much more competitive with coal for power generation. The shale gas boom has
resulted in rising supplies of natural gas. Overall, U.S. natural gas production rose by four trillion
cubic feet (tcf) or 20% since 2007, while production on federal lands (onshore and offshore) fell
by about 33% and production on non-federal lands grew by 40% (see Table 2). The big shale gas
plays are primarily on non-federal lands and are attracting a significant portion of investment for
natural gas development.
This report examines U.S. oil and natural gas production data for federal and non-federal areas
with an emphasis on the past six years of production.2
U.S. Crude Oil Production: Federal and Non-Federal
Areas (Fiscal Year)
Oil production has fluctuated widely between FY2007 and FY2012, yielding different results
when comparing various years. For example, when comparing fiscal year 2010 with 2007, growth
in the federal share of production was about 82% of the total. On federal lands, there was an
increase in production from FY2008-FY2009 and another increase in FY2010, but then declines
in FY2011 and FY2012, which brought production below FY2007 production levels.
Historically, according to the Department of the Interior (DOI) data, crude oil production on
federal lands was consistently under 20% of total U.S. production until the late 1990s when
annual production surged on federal lands (primarily offshore) rising to over 30% in the early
2000s and reaching a high point of about 37% in FY2010.3 As a result of recent production
1
For a broader analysis of offshore oil and gas leasing and resources, please see CRS Report R40645, U.S. Offshore
Oil and Gas Resources: Prospects and Processes, by Marc Humphries and Robert Pirog.
2
For more information on U.S. oil development, see CRS Report R40872, U.S. Fossil Fuel Resources: Terminology,
Reporting, and Summary, by Carl E. Behrens, Michael Ratner, and Carol Glover; CRS Report R41132, Outer
Continental Shelf Moratoria on Oil and Gas Development, by Curry L. Hagerty; and CRS Report R40237, Federal
Lands Managed by the Bureau of Land Management (BLM) and the Forest Service (FS): Issues in the 111th Congress,
coordinated by Ross W. Gorte and Carol Hardy Vincent.
3
The early data 1980 and 1990s was taken from annual Mineral Revenue reports. The data used at that time were
(continued...)
Congressional Research Service 1
5. U.S. Crude Oil and Natural Gas Production in Federal and Non-Federal Areas
increases on non-federal lands, a question is raised as to whether non-federal lands will regain a
more dominant position of roughly 80%-85% of total U.S. crude oil production. The fact
remains, however, that there are 5.3 billion barrels of proved oil reserves located on federal
acreage onshore and another 5.6 billion barrels of proved reserves offshore (nearly all in the Gulf
of Mexico). Taken together, U.S. federal oil reserves equal about 43% of all U.S. crude oil
reserves, which are estimated at 25.2 billion barrels, according to the Energy Information
Administration (EIA). Proved oil reserves are amounts accessible under current policy, prices,
and technology.
Crude oil production on federal lands is likely to continue to make a significant contribution to
the U.S energy supply picture and could remain consistently higher than previous decades, but
still fall as a percent of total U.S. production, if production on non-federal lands continues to rise
at a faster rate.
There is however, continued interest among some in Congress to open more federal lands for oil
and gas development (e.g., the Arctic National Wildlife Refuge (ANWR) and areas offshore) and
increase the speed of the permitting process. But having more lands accessible may not translate
into higher levels of production on federal lands, as industry seeks out the most promising
prospects and highest returns.
Table 1. U.S. Crude Oil Production: Federal and Non-Federal Areas FY2007-FY2012
(Barrels per day)
Total Federal Federal Federal
Fiscal Year U.S. Total Non-Federal (% of U.S. Total) Offshore Onshore
2012 6,208,200 4,580,800 1,627,400 1,295,900 331,500
(26)
2011 5,565,000 3,850,000 1,715,000 1,408,200 306,800
(31)
2010 5,442,600 3,453,600 1,989,000 1,693,200 295,800
(36.5)
2009 5,219,300 3,487,800 1,731,500 1,443,800 287,700
(33)
2008 5,001,100 3,450,400 1,550,700 1,265,800 284,900
(31)
2007 5,083,400 3,387,500 1,695,900 1,408,200 287,700
(33)
Source: Federal data obtained from ONRR Statistics, http://www.onrr.gov (using sales year data).
Notes: U.S. Fiscal Year Total data derived from EIA production data as a percent of total U.S. fiscal year
production in Appendix A of EIA publication Sales of Fossil Fuels Produced from Federal and Indian Lands
FY2003-FY2011, March 2012. The federal production data is consistent with BLM and BOEM statements about
onshore and offshore federal production levels as percent of total U.S. crude oil production. 2012 U.S. Total
data obtained from EIA Monthly Energy Review, February 2013.
(...continued)
accounting data which are considered by the Office of Natural Resources Revenue as not very reliable. The more useful
production volume data provided by ONRR now are based on fiscal year sales data.
Congressional Research Service 2
6. U.S. Crude Oil and Natural Gas Production in Federal and Non-Federal Areas
Figure 1. U.S. Oil and Lease Condensate Production:
Federal and Non-Federal Areas, FY2007-2012
Million barrels per day (Mb/d)
Source: Federal data obtained from ONRR Statistics, http://www.onrr.gov (using sales year data). Figure created
by CRS.
U.S. Natural Gas Production: Federal and Non-
Federal Areas (Fiscal Year)
Natural gas production in the United States overall has increased each year since 2007, while
production on federal lands has remained static or declined each year over the same period. Much
of the decline can be attributed to offshore production falling by over 50%. Onshore production
declines were less dramatic. Federal natural gas production has fluctuated from around 30% of
total U.S. production for much of the 1980s through the early 2000s (34% of U.S. total in 2003),
after which there began a steady decline through 2012.4 This picture of natural gas production is
much different than that of federal crude oil in that federal natural gas had accounted for a much
larger portion of total U.S. natural gas over that past few decades.
Any increase in production of natural gas on federal lands is likely to be easily outpaced by
increases on non-federal lands, particularly because shale plays are primarily situated on non-
federal lands and is where most of the growth in production is projected to occur.
Dry gas proved reserves were estimated at about 305 tcf by the EIA, of which the federal share is
about 28% (69 tcf onshore; 16 tcf offshore). Nearly all of the offshore proved reserves are located
in the Central and Western Gulf of Mexico.
4
U.S. natural gas production fell from about 7 trillion cubic feet in FY2003 to about 3.7 trillion cubic feet in FY2012.
Congressional Research Service 3
7. U.S. Crude Oil and Natural Gas Production in Federal and Non-Federal Areas
Table 2. U.S. Natural Gas Production:
Federal and Non-Federal Areas FY2007-FY2012
(billion cubic feet)
Total Federal Federal Federal
Fiscal Year U.S. Total Non-Federal (% of U.S. Total) Offshore Onshore
2012 23,966 20,242 3,724 (15.5) 1,327 2,393
2011 23,587 18,978 4,609 (19.5) 1,654 2,955
2010 22,012 16,846 5,166 (23.5) 2,098 3,068
2009 21,609 16,233 5,376 (24.9) 2,206 3,170
2008 21,007 15,460 5,547 (26.4) 2,496 3,051
2007 19,959 14,415 5,544 (27.8) 2,709 2,835
Source: Federal data obtained from ONRR Statistics, http://www.onrr.gov (using sales year data).
Notes: U.S. Fiscal Year Total data derived from EIA production data as a percent of total U.S. fiscal year
production in Appendix A of EIA publication Sales of Fossil Fuels Produced from Federal and Indian Lands
FY2003-FY2011, March 2012. The federal production data is consistent with BLM and BOEM statements about
onshore and offshore federal production levels as percent of total U.S. crude oil production. 2012 U.S. Total
data obtained from EIA Monthly Energy Review, February 2013.
Figure 2. U.S. Natural Gas Production:
Federal and Non-Federal Areas FY2007-FY2012
Source: Federal data obtained from ONRR Statistics, http://www.onrr.gov (using sales year data). Figure created
by CRS.
Congressional Research Service 4
8. U.S. Crude Oil and Natural Gas Production in Federal and Non-Federal Areas
EIA Projections
While short-term EIA estimates show oil production continuing to decline in federal offshore
areas, their longer-term estimates show a slight increase in federal offshore oil production overall,
from 1.3 mb/d in 2012 to 1.4-1.8 mb/d in 2040.5 Overall, the EIA projects U.S. oil production to
rise from 5.59 mb/d in 2011 to about 6.13 mb/d by 2040 after reaching 6.7 mb/d in 2025.6
According to these estimates, offshore production in 2040 could range from 23% to 29% of total
U.S. crude oil production. (See Table 3.)
Offshore natural gas production is projected to reverse a years-long decline in 2015, rising to 2.8
tcf annual production in 2040. Even though these projections are in calendar years 2.8 tcf is still
very likely a doubling of current offshore production (provided in fiscal years in the earlier
sections of this report) but would only account for an 8.4% share of total U.S. production in 2040.
(See Table 4.)
Table 3. EIA Oil Production Projections
(million barrels per day)
Year U.S. Offshore U.S. Total
2025 n/a 6.70
2040 1.4-1.8 6.13
Source: EIA 2013 Early Release projections Annual Energy Outlook, February 2013.
Table 4. EIA Natural Gas Production Projections
(trillion cubic feet per year)
Year U.S. Offshore U.S. Total
2025 n/a 28.65
2040 2.8 33.21
Source: EIA 2013 Early Release Annual Energy Outlook, February 2013
Oil and Natural Gas Lease Data for Federal Lands
Currently, there are 113 million acres of onshore federal lands open and accessible for oil and gas
development and about 166 million acres off-limits or inaccessible.7 The Bureau of Land
5
EIA, Early Release, Annual Energy Outlook, February 2013.
6
Ibid.
7
U.S. Depts. of the Interior, of Agriculture, and of Energy, Inventory of Onshore Federal Oil and Natural Gas
Resources and Restrictions to Their Development (Phase III), May 2008, available on the BLM website at
http://www.blm.gov/wo/st/en/prog/energy/oil_and_gas/EPCA_III.html.
The availability of public lands for oil and gas leasing can be divided into three categories: lands open under standard
lease terms, open to leasing with restrictions, and closed to leasing. Areas are closed to leasing pursuant to land
withdrawals or other mechanisms. Much of this withdrawn land consists of wilderness areas, national parks and
monuments, and other unique and environmentally sensitive areas that are unlikely to ever be reopened to oil and gas
(continued...)
Congressional Research Service 5
9. U.S. Crude Oil and Natural Gas Production in Federal and Non-Federal Areas
Management (BLM) is seeking to lease in areas where they anticipate fewer legal challenges and
according to the BLM, they are addressing public concerns prior to a lease sale at a higher rate
than in the past. In 2012, 56% of the onshore acreage under federal lease and 45% of federal
onshore leases were not in production. Offshore, most of the 1.7 billion acres of federal water are
no longer under leasing and development moratoria. The current five-year leasing program has
lease sales scheduled in Western and Central Gulf of Mexico (GOM) and parts of Alaska.8 In the
offshore areas, 72% of the acreage is leased and 75% of the leases are not in production.
According to the Bureau of Land Management (BLM) and the Bureau of Ocean Energy
Management (BOEM), there are approximately 72.8 million acres of oil and gas leases in federal
areas (onshore and offshore). About 37.0 million acres are located onshore and an additional 35.8
million acres are located offshore. Approximately 11.1 million federal acres onshore and about
6.6 million federal acres offshore are producing commercial volumes. (See Table 5.)
Table 5. Oil and Gas Lease Data for Federal Lands, 2012
Onshore Offshore
Acreage under lease 37.0 million acres 35.8 million acres
Acreage with approved exploration or development plan 16.3 million acres 10.1 million acres
(i.e., acreage in production or exploration)
Leased acres producing 11.1 million acres 6.6 million acres
Leased acres not in production or exploration 20.8 million acres 25.7 million acres
Number of Leases 49,213 6,621
Producing Leases (or with approved DOCD)a 27,300 1,611
Source: DOI, Oil and Gas Utilization—Onshore and Offshore, Report to the President, May 2012.
a. A DOCD is a Development Operations Coordination Document that must be submitted for approval to
BOEM before development activities begin.
Producing Acres
The number of producing acres may or may not be a function of how many acres are leased, and
the amount of acres leased may or may not correlate to the amount of production, but it is beyond
the scope of this report to examine that issue thoroughly. In recent years, some members of
Congress have proposed a $4/acre lease fee for non-producing leases. This proposal grew out of
the efforts to open more public land and water (offshore) for oil and gas drilling and development
when gasoline prices spiked in 2006-2008. Some in Congress noted that there were many leases
they believed were not being developed in a timely manner, while at the same time, others in
Congress were advocating greater access to areas off-limits (such as ANWR and areas under
leasing moratoria offshore). Higher rents for offshore leases were imposed by the Secretary of the
Interior in 2009 to discourage holding unused leases and to move more leases into production if
(...continued)
leasing. Some lands are closed to leasing pending land use planning or NEPA compliance, while other areas are closed
because of federal land management decisions on endangered species habitat or historical sites. Some of those
restricted areas may be opened by future administrative decisions.
8
The Eastern GOM is under a leasing moratoria until 2022 under the Gulf of Mexico Energy Security Act and the
North Aleutian Basin of Alaska was withdrawn from leasing under an executive order by the current Administration.
Congressional Research Service 6
10. U.S. Crude Oil and Natural Gas Production in Federal and Non-Federal Areas
possible. The escalation in rents are significant over time as they rise from $7/acre to $28/acre (in
year-8 forward) in water depths less than 200 meters and increase from $11/acre to $44/acre (in
year-8 forward) in water depths between 200 and 400 meters. However, there was no similar
escalation for onshore leases, as they remain $1.50/acre for years 1-5, then rise to $2/acre
thereafter.9 A non-producing fee or an escalation of rents may not increase production but may
reduce the ratio of producing leases to active leases. Thus, there might be fewer “idle” leases and
acreage not in production or exploration. The BLM can re-lease acreage that has been
relinquished or passed over at a future lease sale.
Applications for Permits to Drill (APDs)
Another major issue that the 113th Congress may address is streamlining the processing of
applications for permits to drill (APDs). Some members contend that this would be one way to
help boost energy production on federal lands. After a lease has been obtained, either
competitively or noncompetitively, an application for a permit to drill must be approved for each
oil and gas well. As noted in the Mineral Leasing Act, section 226 (g), “no permit to drill on an
oil and gas lease issued under this chapter may be granted without the analysis and approval by
the Secretary concerned of a plan of operations covering proposed surface-disturbing activities
within the lease area.” The application form (APD form 3160-3) must include, among other
things, a drilling plan, a surface use plan, and evidence of bond/surety coverage. The surface use
plan should contain information on drillpad location, pad construction, the method for
containment and waste disposal, and plans for surface reclamation.10
Prior to the Energy Policy Act of 2005 (P.L. 109-58, EPACT ’05) a major concern that prompted
the streamlining of permits debate was the lengthy timetable to process an APD. The BLM
attributed the longer timelines to the rewriting of outdated Resource Management Plans (RMPs).
There were several RMPs revised over the past decade. Leading up to the provisions in EPACT
’05 that would attempt to streamline the permitting process, the BLM announced, in April 2003,
new strategies to expedite the APD process. The new strategies included processing and
conducting environmental analyses on multiple permit applications with similar characteristics,
implementing geographic area development planning for an oil or gas field or an area within a
field, establishing a standard operating practice agreement that identifies surface and drilling
practices by oil and gas operators, allowing for a block survey of cultural resources, promoting
consistent procedures, and revising relevant BLM manuals.11 EPACT ’05 Section 366 (Deadline
for Consideration of Application for Permits) provided a new timeline for BLM to process
APDs.12
9
DOI, Oil and Gas Lease Utilization, Onshore and Offshore, Updated Report to the President, May 2012, p.18.
10
U.S. Department of the Interior, Bureau of Land Management (BLM), Surface Operating Standards and Guidelines
for Oil and Gas Exploration and Development, The Gold Book, Fourth Edition-Revised 2007, p. 8.
11
DOI/BLM Instruction Memorandum No. 2003-152, Application for Permit to Drill Process Improvement#1-
Comprehensive Strategies, April 14, 2003.
12
Within 10 days of receiving the application from the operator, BLM shall notify the operator as to whether the
application is complete and also schedule a site visit. If the application is not complete, the operator then has 45 days to
submit additional information to BLM to complete the application or the application is returned to the operator. Within
30 days of receiving a completed application the BLM will approve or defer the application. If deferred, the operator
has up to two years to take specified actions to complete the application or face the possibility of being denied a permit.
Congressional Research Service 7
11. U.S. Crude Oil and Natural Gas Production in Federal and Non-Federal Areas
While the current Administration processed more APDs than it received from 2009-2011, it
received far fewer applications over that period than the previous Administration had received
from 2006-2008. As the number of pending applications has fallen steadily since 2008, the ratio
of APDs pending to APDs processed was higher than during the period 2006-2008. In addition,
there are 7,000 approved APDs that are not in the exploration or production stages (approved but
not drilled).13 The BLM expected to process more than 5,000 APDs in each of the fiscal years
2012 and 2013.
Table 6. Onshore Drilling Permits (FY2006-FY2011)
Fiscal Year APDs Received APDs Processed APDs Pending
2011 4,278 5,200 4,309
2010 4,251 5,237 4,603
2009 5,257 5,306 5,589
2008 7,884 7,846 5,638
2007 8,370 8,964 5,600
2006 10,492 8,854 6,194
Source: U.S. Department of the Interior, Oil and Gas Utilization, Onshore and Offshore, May 2012
Despite the new timeline for review, it took an average of 307 days for all parties to process
(approve or deny) an APD in 2011, up from an average of 218 days in 2006.14 The difference
however, is that in 2006 it took the BLM an average of 127 days to process an APD, while in
2011 it took BLM 71 days. In 2006, the industry took an average of 91 days to complete an APD,
but in 2011, the industry took 236 days. Thus, since 2006, it took the BLM 56 fewer days to
process APDs, while it took the industry145 days longer to submit a completed application.15 The
BLM stated in its FY2012 and FY2013 budget justifications that overall processing times per
APD have increased because of the complexity of the process.
Some critics of this lengthy timeframe highlight the relatively speedy process for permit
processing on private lands. However, crude oil development on federal lands takes place in a
wholly different regulatory framework than that of oil development on private lands.16 State
agencies permit drilling activity on private lands within their state, with some approving permits
within ten business days of submission. This faster approval rate does not necessarily diminish
the additional work required by the state to address other state requirements. But oftentimes,
some surface management issues are negotiated between the oil producer and the individual
13
U.S Department of the Interior, Oil and Gas Lease Utilization, Onshore and Offshore, Updated Report to the
President, May 2012, p. 14.
14
Bureau of Land Management, “Average Application for Permit to Drill (APD) Approval Timeframes: FY2005-
FY2012,” http://www.blm.gov/wo/st/en/prog/energy/oil_and_gas/statistics/apd_chart.html.
15
Ibid.
16
Under the Federal Land Policy and Management Act (FLPMA), Resource Management Plans or Land Use Plans (43
USC 1712) are required for tracts or areas of public lands prior to development. The Bureau of Land Management
(BLM) must consider environmental impacts during land-use planning when RMPs are developed and implemented.
RMPs can cover large areas, often hundreds of thousands of acres across multiple counties. Through the land-use
planning process, the BLM determines which lands with oil and gas potential will be made available for leasing.
Congressional Research Service 8
12. U.S. Crude Oil and Natural Gas Production in Federal and Non-Federal Areas
land/mineral owner. A private versus federal permitting regime does not lend itself to an “apples-
to-apples” comparison.
Streamline Pilot
EPACT ’05 also included a provision to initiate and fund (funding authorized through FY2015) a
pilot program at seven BLM field offices in an effort to streamline the permitting process for oil
and gas leases on federal lands. Results from the pilot project were published according to the
timetable required by EPACT ’05 (within three years after enactment). The conclusion was that
the pilot made a difference in improving the processing times for APDs at the pilot offices overall
and increased the number of environmental inspections. The BLM noted that the National
Environmental Policy Act (NEPA) processing time for APDs and rights of way (ROW)
applications fell from 81 to 61 days or roughly 25% due to “colocation” of agency staff. BLM
reported that the number of environmental inspections went up by 78% from FY2006 to
FY2007.17 However, the BLM reported mixed results at the specific field offices.While some of
the offices processed more permits in 2007 than they did in 2005, all the pilot sites reported more
completed environmental inspections.18
Concerns
A number of concerns may arise in the oil and gas leasing process that could delay or prevent oil
and gas development from taking place, or might account for the relatively large number of leases
held in non-producing status. It should be noted that many leases expire without exploration or
production ever occurring.
Below is a list of often-cited issues which, individually or in combination, are used to explain
why more leases are not producing.
• Rig or equipment availability, particularly offshore;
• High capital costs;
• Skilled labor shortages;
• Leases in the development cycle (e.g., conducting environmental reviews,
permitting, or exploring) but not producing;
• Legal challenges that might delay or prevent development;
• No commercial discovery on a lease tract;
• Holding leases (because of the lack of capital or as “speculators”) to sell or “farm
out” at a later date;
• Ability to secure extensions on non-producing leases; and
• Securing and being able to hold large number of lease tracts, often contiguous, to
maximize return on their investment;
17
Bureau of Land Management, BLM Year Two Report, Section 365 of EPACT 2005 Pilot Project to Improve Federal
Permit Coordination, February 2008.
18
Ibid.
Congressional Research Service 9
13. U.S. Crude Oil and Natural Gas Production in Federal and Non-Federal Areas
• The potential for inadequate coordination between the Department of the
Interior’s lease management and regulatory agencies (Bureau of Ocean Energy
Management and Bureau of Safety and Environmental Enforcement) and other
federal agencies to ensure protection of federal areas encompassing coastal and
marine sanctuaries.
Conclusions
There are substantial oil and natural gas reserves and resource potential in federal areas, many of
which are already accessible. Production from these areas will likely continue to make a
significant contribution to the U.S. energy supply picture, but any rise in production, as projected
by the EIA, will be outpaced by faster rising production in non-federal areas. A more efficient
permitting process may be an added incentive for the industry to invest in developing federal
resources, which may allow for some oil and gas to come onstream sooner, but in general, the
regulatory framework for developing resources on federal lands will likely remain more involved
and time-consuming than that on private land.
Author Contact Information
Marc Humphries
Specialist in Energy Policy
mhumphries@crs.loc.govmailto:mhumphries@crs.loc.gov,
7-7264
Congressional Research Service 10