Archive for the ‘Trump and oil drilling’ category

Report: US Oil Output Jumps To Record High In March

June 1, 2018


In the first great Texas gusher, oil is discovered at Spindletop in Beaumont, Texas

Reuters Thursday, May 31, 2018

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Report: US Oil Output Jumps To Record High In March

{Strategically, this is good news if you consider Saudi output was just below this figure for the same period. – LS}

U.S. crude oil production jumped 215,000 barrels per day (bbl/d) to 10.47 million bbl/d in March, the highest on record, the Energy Information Administration (EIA) said in a monthly report on May 31.

Production in Texas rose by 4% to almost 4.2 million bbl/d, a record high based on the data going back to 2005. The Permian Basin, which stretches across West Texas and eastern New Mexico, is the largest U.S. oil field.

Output from North Dakota held around 1.2 million bbl/d, while output in the federal Gulf of Mexico declined 1.1% to 1.7 million bbl/d.

The agency also revised February oil production down by 5,000 bbl/d to 10.26 million bbl/d.

U.S. natural gas production in the Lower 48 states rose to an all-time high of 88.8 billion cubic feet per day (Bcf/d) in March, up from the prior record of 87.7 Bcf/d in February, according to EIA’s 914 production report.

Output in Texas, the nation’s largest gas producer, increased 1.3% in March to 22.7 Bcf/d, the most since April 2016.

In Pennsylvania, the second biggest gas producing state, production dipped to 16.4 Bcf/d in March, down 0.6% from February’s record high of 16.5 Bcf/d. That compares with output of 14.8 Bcf/d in March 2017.

Trump signs order aimed at opening Arctic drilling

April 28, 2017

Trump signs order aimed at opening Arctic drilling, Associated Press, Matthew Daly and Jill Colvin, April 28, 2017

It also directs Zinke to review the locations available for offshore drilling under a five-year plan Obama signed in November. The plan blocked new oil and gas drilling in the Atlantic and Arctic oceans. It also stopped the planned sale of new oil and gas drilling rights in the Chukchi and Beaufort seas north of Alaska, but allowed drilling in Alaska’s Cook Inlet southwest of Anchorage.

The order could open to oil and gas exploration areas off Virginia and North and South Carolina, where drilling has been blocked for decades.

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WASHINGTON (AP) — Working to dismantle his predecessor’s environmental legacy, President Donald Trump signed an executive order on Friday aimed at expanding drilling in the Arctic and opening other federal areas to oil and gas exploration.

With one day left to rack up accomplishments before he reaches his 100th day in office, Trump signed an order reversing some of former President Barack Obama’s restrictions and instructing Interior Secretary Ryan Zinke to review a plan that dictates which federal locations are open to offshore drilling.

It’s part of Trump’s promise to unleash the nation’s energy reserves in an effort to reduce reliance on foreign oil and to spur jobs, regardless of fierce opposition from environmental activists who say offshore drilling harms whales, walruses and other wildlife and exacerbates global warming.

“This executive order starts the process of opening offshore areas to job-creating energy exploration,” Trump said during a White House signing ceremony. “It reverses the previous administration’s Arctic leasing ban and directs Secretary Zinke to allow responsible development of off-shore areas that will bring revenue to our treasury and jobs to our workers.”

“Today,” he said, “we’re unleashing American energy and clearing the way for thousands and thousands of high-paying energy jobs.”

The executive order reverses part of a December effort by Obama to deem the bulk of U.S.-owned waters in the Arctic Ocean and certain areas in the Atlantic as indefinitely off limits to oil and gas leasing.

It also directs Zinke to review the locations available for offshore drilling under a five-year plan Obama signed in November. The plan blocked new oil and gas drilling in the Atlantic and Arctic oceans. It also stopped the planned sale of new oil and gas drilling rights in the Chukchi and Beaufort seas north of Alaska, but allowed drilling in Alaska’s Cook Inlet southwest of Anchorage.

The order could open to oil and gas exploration areas off Virginia and North and South Carolina, where drilling has been blocked for decades.

Zinke said that leases scheduled under the existing plan will remain in effect during the review, which he estimated will take several years.

The order also directs Commerce Secretary Wilbur Ross to conduct a review of marine monuments and sanctuaries designated over the last 10 years.

Citing his department’s data, Zinke said the Interior Department oversees some 1.7 billion acres on the outer continental shelf, which contains an estimated 90 billion barrels of undiscovered oil and 327 trillion cubic feet of undiscovered natural gas. Under current restrictions, about 94 percent of that outer continental shelf is off-limits to drilling.

Zinke, who is also tasked with reviewing other drilling restrictions, acknowledged environmental concerns as “valid,” but he argued that the benefits of drilling outweigh concerns.

Environmental activists, meanwhile, railed against the signing, which comes seven years after the devastating 2010 BP oil spill in the Gulf of Mexico.

Diana Best of Greenpeace said that opening new areas to offshore oil and gas drilling would lock the U.S. “into decades of harmful pollution, devastating spills like the Deepwater Horizon tragedy, and a fossil fuel economy with no future.”

“Scientific consensus is that the vast majority of known fossil fuel reserves – including the oil and gas off U.S. coasts-must remain undeveloped if we are to avoid the worst effects of climate change,” she said.

Jacqueline Savitz of the ocean advocacy group Oceana warned the order would lead to “corner-cutting and set us up for another havoc-wreaking environmental disaster” in places like the Outer Banks or in remote Barrow, Alaska, “where there’s no proven way to remove oil from sea ice.”

“We need smart, tough standards to ensure that energy companies are not operating out of control,” she said, adding: “In their absence, America’s future promises more oil spills and industrialized coastlines.”

Trump Readies Executive Order To Open The Arctic, Atlantic Oceans To Drilling

April 7, 2017

Trump Readies Executive Order To Open The Arctic, Atlantic Oceans To Drilling,  Daily Caller, Michael Bastasch, April 7, 2017

(What will OPEC say? — DM)

Offshore oil rig drilling platform. (Credit: Kanok Sulaiman/Shutterstock)

The Trump administration is developing an order to open new areas to offshore oil and gas drilling, reversing former President Barack Obama’s unilateral decision to lock up most of the Arctic and Atlantic oceans, according to industry sources.

Industry sources familiar with the matter told Platts an executive order is in the works to rewind Obama’s decision to make large swaths of the Arctic and Atlantic off-limits to oil and gas drilling.

Secretary of the Interior Ryan Zinke told industry representatives the new drilling plan would be signed soon, according to Bloomberg. However, he gave few details on what the order could include.

The Department of the Interior’s (DOI) new five-year offshore drilling plan could take years to develop and would replace the Obama administration’s five-year plan finalized in November.

President Donald Trump promised to end Obama-era restrictions on energy production in order to unlock revenue from natural resources and create jobs. DOI raised $275 million in bids in a recent lease auction for the Gulf of Mexico.

Trump is expected to sign the order by the end of April, and it’s sure to draw legal challenges from environmentalists who’ve argued Obama’s indefinite ban on Arctic and Atlantic drilling can’t be overturned.

Obama used Section 12(a) of the Outer Continental Shelf Lands Act, a 1953 law governing offshore drilling, in an unprecedented way, blocking leases in the Atlantic Ocean and the Chukchi and Beaufort seas.

Obama’s order took 125 million acres in Arctic seas and four million acres in the Atlantic Ocean out of future lease sales indefinitely. Supporters said the former president’s actions “permanently” banned drilling in those regions.

But the drilling ban is only permanent if Congress doesn’t change the law or Trump doesn’t move to test it in court. Past presidents have reduced the size of Section 12(a) designations but never fully repealed them.

The U.S.-held portion of the Arctic Ocean is estimated to hold 27 billion barrels of oil and 132 trillion cubic feet of natural gas. The oil and gas industry has struggled to access these vast energy reserves but new discoveries in northern Alaska have reinvigorated some interest in the region.