Should he get credit???????

[Tam]

OIL AND GAS:

Two-thirds of federal drilling permits sat idle in 2010

Phil Taylor, E&E reporter
Greenwire: Thursday, January 13, 2011

Oil and gas companies drilled fewer new wells on public lands in 2010 than in any other year over the past decade, leaving nearly two-thirds of their drilling permits unused, according to federal records obtained by Greenwire.

The Bureau of Land Management issued 4,090 drilling permits in fiscal 2010, but oil and gas operators drilled 1,480 new wells, using about 36 percent of permits issued.

BLM's permitting data refute industry assertions that the Obama administration is blocking oil and gas development to protect Western landscapes and wildlife, said Dave Alberswerth of the Wilderness Society, a former Interior Department official in the Clinton administration.

"The downturn in drilling on public lands is purely a function of internal corporate decisions and declining natural gas prices, not [Interior Secretary Ken] Salazar's oil and gas policies," Alberswerth said.

But industry representatives say the numbers tell another story. Kathleen Sgamma, government affairs director for the Denver-based Western Energy Alliance, said the Obama administration's regulations have discouraged new drilling in the West, where BLM controls some 250 million acres.

"We were surprised," Sgamma said, "to see just how much the additional regulatory burden has discouraged drilling in the West."

Companies used more permits in previous years. On average, they drilled new wells on roughly 75 percent of new permits issued over the last decade, according to permit records.

New wells drilled on federal lands in 2010 were the lowest of the decade, but industry used less than half of its permits, BLM data indicate.

The 1,480 new wells drilled in 2010 are less than half the average number of new wells begun on public land over the past 10 years, records show.

The BLM numbers come with caveats. Permits -- known as "applications for permit to drill," or APDs -- are good for two years, so wells drilled in any given year may not correspond to APDs issued that year.

Operators postpone drilling some permitted wells until they can acquire enough APDs to support a viable business plan, Sgamma said.

"It's important to note that operators don't base their decision to drill just on getting an APD, but rather the cost to drill that well," Sgamma said.

Sgamma's group has criticized changes to BLM's oil and gas program under the Obama administration that include leasing reforms, the withdrawal of leases issued under the George W. Bush administration and an out-of-court settlement requiring the agency to conduct reviews of likely greenhouse gas emissions from oil and gas development.

Taken together, the policies have scared away investment and sent drillers to nonfederal lands such as the Marcellus Shale in Pennsylvania and the Haynesville and Barnett shales in Louisiana and Texas, Sgamma said.

If prices were truly to blame for the downturn in drilling on federal lands, one would expect a similar decline in other parts of the country, Sgamma said.

"In the same commodity price environment, we're seeing less activity in the West than in the rest of the country," Sgamma said. Industry can endure lower prices, she added, but "if your regulatory costs are higher in one area of the country, then you just can't make the economics of it work."
Price plays a role

Jack Coleman, a managing partner at EnergyNorthAmerica LLC and former Interior attorney under the George W. Bush administration, said a number of factors could have caused the discrepancy between drilling permits and new wells. Among them: gas prices, geology and business strategy.

"No one ever drills all the permits that they get, nobody has ever done that in the history of oil and gas," Coleman said. "They drill the prospects that are best to them based on the geology they know at the time."

Oil and gas companies typically need to reserve APDs in case there is a sudden bump in the price of commodities, Coleman said. In other cases, companies want to have APDs in hand in case a competitor's neighboring well becomes suddenly flush with oil or gas.

"It's called the law of drainage," Coleman said. "If he starts producing before you do, he can drain the field and you won't have anything left to produce."

The cost of drilling a well can also vary substantially and can sometimes prevent a firm from utilizing all of its permits. That could also be a function of natural gas prices, Coleman said, echoing Alberswerth's claim.

For example, recent demand for drill rigs in oil plays such as North Dakota's Bakken field could have led to a dearth of available rigs in the Rocky Mountain West to drill for comparatively less valuable natural gas, Coleman said.

"Certainly in the last two years natural gas has gone down in favor," Coleman said.

"That doesn't mean they stop getting permits for the gas plays," he added, "because, believe me, oil and gas companies are eternally optimistic. They want to have those permits in place when the price of natural gas bumps up a little bit and they can make more money."

Prices are also to blame for a steep drop in leases issued on federal lands in 2010 compared to 2009, BLM said. The bureau issued about 1,300 new leases in 2010, down substantially from the more than 2,000 leases it issued the year before.

"In response to falling oil and natural gas prices, oil and natural gas development companies have scaled back energy development and leasing activities," BLM said in a posting on its website last month in response to an industry report warning of leasing declines, "a downward trend that is reflected in decreased leasing nationally, not just on federally-managed lands."

The Western Energy Alliance report found that BLM in fiscal 2010 issued 79 percent fewer leases in Colorado, Montana, New Mexico, North Dakota, Utah and Wyoming than in fiscal 2005 (Greenwire, Dec. 17, 2010).

So Obama lays claims to the increase in Oil Production in the US BUT on Federal lands the drilling is at the lowest level in a decade due to OBAMA"S Regulations. The cost of those regulations are chasing oil rigs out of Federal land to PRIVATE land so why is Obama laying claim when it is happening INSPITE OF HIS AND HIS ADMINISTRATION

 

[hypocritexposer]

They are not going to drill, if they are unsure of how they will get taxed etc.


and now they are sending the higher value products offshore.

Tax incentives for keeping the higher valued products domestic, would be one solution.

 

[Steve]

we have insufficient natural gas infrastructure to handle a large increase in supply..

we have insufficient demand for natural gas..


wouldn't a smart guy say.. we need cleaner less expensive domestic energy sources, and "invest in that?


by taking a national look at natural gas, Obama could have made a huge difference in our energy dependency..

by now we could be well on our way to converting several of our federal vehicle fleets to CNG/HYBRID electric..

the postal LLV fleet is old S-10 pickup technology and needing upgrading..

the School bus fleet is old truck truck technology and needing upgrading.

both fleets are ideal candidates for CNG/Electric hybrids..

both have limited daily use,

both are high stop and go usages.

both have extended overnight recharge time...

and if you add in many other federal departments to the changeover, it would "fuel" a new investment in the infrastructure..

so in answering does Obama deserve credit.. for what? he hasn't done a darn thing to improve anything..

 

[Anonymous]

Comical- up here some of the local business's and landowners have been complaining about the State opening up "too much" public land for leasing at what they see as too cheap of lease prices-- which they fear will downprice the amount being paid to deeded landowners when most leases come due next year.... :???:

Damned if you do- Damned if you don't..... :roll:

 

[hypocritexposer]

Comical- up here some of the local business's and landowners have been complaining about the State opening up "too much" public land for leasing at what they see as too cheap of lease prices-- which they fear will downprice the amount being paid to deeded landowners when most leases come due next year.... :???:

Damned if you do- Damned if you don't..... :roll:

raise the lease price too much and the oil companies will go elsewhere

And Trinidad drilling did just that when the cost of production got too high in North Dakota. Up until then they were one of the largest in the area.

Were you not crying about a shortage of rigs, OT?

 

[TSR]

States get federal money for school buses??? I didn't know that. If so, I would like to see one of those electric buses climb the hills around here.

 

[Anonymous]

Comical- up here some of the local business's and landowners have been complaining about the State opening up "too much" public land for leasing at what they see as too cheap of lease prices-- which they fear will downprice the amount being paid to deeded landowners when most leases come due next year.... :???:

Damned if you do- Damned if you don't..... :roll:

raise the lease price too much and the oil companies will go elsewhere

And Trinidad drilling did just that when the cost of production got too high in North Dakota. Up until then they were one of the largest in the area.

Were you not crying about a shortage of rigs, OT?

They are complaining that the state leases are being offered for about a nickel on a dollar compared to the neighboring current deeded land mineral leases that the oil companies have been paying for years...Afraid it could negatively affect local economies around the state- lower lease amount payments that have helped keep these business's in business....

I agree with not enough rigs- which is the biggest reason we're not getting the oil we need...Hundreds of sites sit ready to be drilled on- but no availability of rigs..

And it is the reason I've long said its sad that the Exxon's of the country and the Oil Industry decided that pocketing alltime record corporate profits was more important than investing back into the building/purchasing of more rigs and the infrastructure of their industry and the country....

Maybe if they wouldn't have their special tax breaks/subsidies they would use those investments in new/more equipment purchases as their way of getting enough tax deductions- just like other industries have to ...

 

[Tam]

Comical- up here some of the local business's and landowners have been complaining about the State opening up "too much" public land for leasing at what they see as too cheap of lease prices-- which they fear will downprice the amount being paid to deeded landowners when most leases come due next year.... :???:

Damned if you do- Damned if you don't..... :roll:

raise the lease price too much and the oil companies will go elsewhere

And Trinidad drilling did just that when the cost of production got too high in North Dakota. Up until then they were one of the largest in the area.

Were you not crying about a shortage of rigs, OT?

They are complaining that the state leases are being offered for about a nickel on a dollar compared to the neighboring current deeded land mineral leases that the oil companies have been paying for years...Afraid it could negatively affect local economies around the state- lower lease amount payments that have helped keep these business's in business....

I agree with not enough rigs- which is the biggest reason we're not getting the oil we need...Hundreds of sites sit ready to be drilled on- but no availability of rigs..

And it is the reason I've long said its sad that the Exxon's of the country and the Oil Industry decided that pocketing alltime record corporate profits was more important than investing back into the building/purchasing of more rigs and the infrastructure of their industry and the country....

Maybe if they wouldn't have their special tax breaks/subsidies they would use those investments in new/more equipment purchases as their way of getting enough tax deductions- just like other industries have to ...

Don't you have an in with your DEMOCRAT governor Oldtimer? Talk to him and tell him to knock it off and stop under cutting the going rate as it is hurting main street Montana. :wink:

BTW is Nabors in the US connected to Nabors Canada? As there is NO SHORTAGE of rigs at Nabors Canada as the yard in Sylvan Lake AB is full of rigs. Last fall there wasn't room enough to walk between the equipment that was being stored in that yard. :?

 

[Steve]

States get federal money for school buses??? I didn't know that. If so, I would like to see one of those electric buses climb the hills around here.

Not sure where you read that states get federal money for school buses in my post..

I said the federal government should "invest" in the technology,.. and that will fuel development..


but since you asked.. it used to... back in 2005..

Clean School Bus USA Grants and Funding
Includes funding opportunities available through EPA's Clean School Bus USA program and links to other potential federal, state, and local agencies that support projects to reduce school bus emissions through idling reduction, retrofit, and replacement programs.

The Diesel Emissions Reduction Program (known as "DERA") was created under the Energy Policy Act of 2005 (EPAct), Title VII, Subtitle G (Sections 791 to 797) (PDF) (551 pp, 1.3MB) Exit EPA Disclaimer. This gave EPA new grant and loan authority for promoting diesel emission reductions and authorized appropriations to the Agency of up to $200 million per year for FY2007 through

as for Electric not being able to handle a hill... the torque on large electric motors would surprise you... add that with a CNG engine and you would be able to climb most hills and regenerate on the way down..

Just yesterday AC Propulsion announced that a Yokohama-sponsored electric race car using AC Propulsion's proprietary electric drive system broke its own 2010 record at the 89th annual Pikes Peak International Hill Climb. The AC Propulsion-equipped vehicle won the hill climb's Exhibition Class and set a new EV record with a time of 12:20:084, besting last year's record-breaking time of 13:17:575 by nearly one minute. It was also the race's fastest EV among both cars and motorcycles.

"Electric vehicles can handle the hills, in spite of popular opinion to the contrary," he said. "Yes, you will have a decrease in range in a hilly environment, but you recapture some of that going down the hills. Still, even in San Francisco, an electric vehicle could easily do forty to fifty miles per day, no problem."

has a school bus ever climbed pikes peak?

not to mention,.. Diesel / electric trains have been around awhile..

n a Diesel-electric locomotive, the Diesel engine drives an electrical generator whose output provides power to the traction motors. There is no mechanical connection between the engine and the wheels.

 

[hypocritexposer]

Comical- up here some of the local business's and landowners have been complaining about the State opening up "too much" public land for leasing at what they see as too cheap of lease prices-- which they fear will downprice the amount being paid to deeded landowners when most leases come due next year.... :???:

Damned if you do- Damned if you don't..... :roll:

raise the lease price too much and the oil companies will go elsewhere

And Trinidad drilling did just that when the cost of production got too high in North Dakota. Up until then they were one of the largest in the area.

Were you not crying about a shortage of rigs, OT?

They are complaining that the state leases are being offered for about a nickel on a dollar compared to the neighboring current deeded land mineral leases that the oil companies have been paying for years...Afraid it could negatively affect local economies around the state- lower lease amount payments that have helped keep these business's in business....

I agree with not enough rigs- which is the biggest reason we're not getting the oil we need...Hundreds of sites sit ready to be drilled on- but no availability of rigs..

And it is the reason I've long said its sad that the Exxon's of the country and the Oil Industry decided that pocketing alltime record corporate profits was more important than investing back into the building/purchasing of more rigs and the infrastructure of their industry and the country....

Maybe if they wouldn't have their special tax breaks/subsidies they would use those investments in new/more equipment purchases as their way of getting enough tax deductions- just like other industries have to ...

still haven't figured out oil versus NG, eh?

"pocketing the profits" :lol: :lol:


They spent $billions on new technology, so they could even drill in those shale plays.


"if they didn't have those tax breaks"

Much of the increase in production, that obama is taking credit for, is due to that investment by the drilling companies. :roll:

 

[Lonecowboy]

raise the lease price too much and the oil companies will go elsewhere

And Trinidad drilling did just that when the cost of production got too high in North Dakota. Up until then they were one of the largest in the area.

Were you not crying about a shortage of rigs, OT?

They are complaining that the state leases are being offered for about a nickel on a dollar compared to the neighboring current deeded land mineral leases that the oil companies have been paying for years...Afraid it could negatively affect local economies around the state- lower lease amount payments that have helped keep these business's in business....

I agree with not enough rigs- which is the biggest reason we're not getting the oil we need...Hundreds of sites sit ready to be drilled on- but no availability of rigs..

And it is the reason I've long said its sad that the Exxon's of the country and the Oil Industry decided that pocketing alltime record corporate profits was more important than investing back into the building/purchasing of more rigs and the infrastructure of their industry and the country....

Maybe if they wouldn't have their special tax breaks/subsidies they would use those investments in new/more equipment purchases as their way of getting enough tax deductions- just like other industries have to ...

Don't you have an in with your DEMOCRAT governor Oldtimer? Talk to him and tell him to knock it off and stop under cutting the going rate as it is hurting main street Montana. :wink:

BTW is Nabors in the US connected to Nabors Canada? As there is NO SHORTAGE of rigs at Nabors Canada as the yard in Sylvan Lake AB is full of rigs. Last fall there wasn't room enough to walk between the equipment that was being stored in that yard. :?

all 5 seats on the state land board are dems Tam :roll: :roll:

I bet that changes this next election! :wink:

 

[TexasBred]

Seems they need to hire an expert to assist them in negotiating leases with the O&G companies. You do realize many of these terms are negotiable?? Especially upfront leasing bonus' and royalty rates.

 

[TSR]

States get federal money for school buses??? I didn't know that. If so, I would like to see one of those electric buses climb the hills around here.

Not sure where you read that states get federal money for school buses in my post..

I said the federal government should "invest" in the technology,.. and that will fuel development..


but since you asked.. it used to... back in 2005..

Clean School Bus USA Grants and Funding
Includes funding opportunities available through EPA's Clean School Bus USA program and links to other potential federal, state, and local agencies that support projects to reduce school bus emissions through idling reduction, retrofit, and replacement programs.

The Diesel Emissions Reduction Program (known as "DERA") was created under the Energy Policy Act of 2005 (EPAct), Title VII, Subtitle G (Sections 791 to 797) (PDF) (551 pp, 1.3MB) Exit EPA Disclaimer. This gave EPA new grant and loan authority for promoting diesel emission reductions and authorized appropriations to the Agency of up to $200 million per year for FY2007 through

as for Electric not being able to handle a hill... the torque on large electric motors would surprise you... add that with a CNG engine and you would be able to climb most hills and regenerate on the way down..

Just yesterday AC Propulsion announced that a Yokohama-sponsored electric race car using AC Propulsion's proprietary electric drive system broke its own 2010 record at the 89th annual Pikes Peak International Hill Climb. The AC Propulsion-equipped vehicle won the hill climb's Exhibition Class and set a new EV record with a time of 12:20:084, besting last year's record-breaking time of 13:17:575 by nearly one minute. It was also the race's fastest EV among both cars and motorcycles.

"Electric vehicles can handle the hills, in spite of popular opinion to the contrary," he said. "Yes, you will have a decrease in range in a hilly environment, but you recapture some of that going down the hills. Still, even in San Francisco, an electric vehicle could easily do forty to fifty miles per day, no problem."

has a school bus ever climbed pikes peak?

not to mention,.. Diesel / electric trains have been around awhile..

n a Diesel-electric locomotive, the Diesel engine drives an electrical generator whose output provides power to the traction motors. There is no mechanical connection between the engine and the wheels.

Good information. I had always wondered what would happen to agriculture if there was no more diesel. I didn't realize that technology had advanced that far to create the torque necessary for large farm equipment.

 

[Steve]

States get federal money for school buses??? I didn't know that. If so, I would like to see one of those electric buses climb the hills around here.

Not sure where you read that states get federal money for school buses in my post..

I said the federal government should "invest" in the technology,.. and that will fuel development..


but since you asked.. it used to... back in 2005..

Clean School Bus USA Grants and Funding
Includes funding opportunities available through EPA's Clean School Bus USA program and links to other potential federal, state, and local agencies that support projects to reduce school bus emissions through idling reduction, retrofit, and replacement programs.

The Diesel Emissions Reduction Program (known as "DERA") was created under the Energy Policy Act of 2005 (EPAct), Title VII, Subtitle G (Sections 791 to 797) (PDF) (551 pp, 1.3MB) Exit EPA Disclaimer. This gave EPA new grant and loan authority for promoting diesel emission reductions and authorized appropriations to the Agency of up to $200 million per year for FY2007 through

as for Electric not being able to handle a hill... the torque on large electric motors would surprise you... add that with a CNG engine and you would be able to climb most hills and regenerate on the way down..

Just yesterday AC Propulsion announced that a Yokohama-sponsored electric race car using AC Propulsion's proprietary electric drive system broke its own 2010 record at the 89th annual Pikes Peak International Hill Climb. The AC Propulsion-equipped vehicle won the hill climb's Exhibition Class and set a new EV record with a time of 12:20:084, besting last year's record-breaking time of 13:17:575 by nearly one minute. It was also the race's fastest EV among both cars and motorcycles.

"Electric vehicles can handle the hills, in spite of popular opinion to the contrary," he said. "Yes, you will have a decrease in range in a hilly environment, but you recapture some of that going down the hills. Still, even in San Francisco, an electric vehicle could easily do forty to fifty miles per day, no problem."

has a school bus ever climbed pikes peak?

not to mention,.. Diesel / electric trains have been around awhile..

n a Diesel-electric locomotive, the Diesel engine drives an electrical generator whose output provides power to the traction motors. There is no mechanical connection between the engine and the wheels.

Good information. I had always wondered what would happen to agriculture if there was no more diesel. I didn't realize that technology had advanced that far to create the torque necessary for large farm equipment.

the liberal never ending argument strategy..

do you have a problem with reading comprehension?

I set forth two valid examples of a way Obama could have reduced our dependance on foreign oil.

but he didn't so you come up some wild ass extreme answer.. talking about something you obviously know nothing about...

I didn't advocate for tractors. or heavy equipment.. I said "REPLACE THE OLD s-10 POSTAL LLV, AND SCHOOL BUSES"..

but just to show how ill-informed you are.

but since you want to compare a pea to a watermelon..

SYNOPSIS: D7E tractor offers 25% improvement in fuel economy and as much as $9,000 in annual fuel savings.

Caterpillar Ships First D7E Diesel-Electric Tractor

The Cat C9.3 ACERT™ diesel engine, rated at 235 net horsepower (175 kW) in the D7E, drives a powerful electrical generator

To learn more about the Cat D7E with electric drive, visit www.cat.com/D7E.

if it is good enough for Cat,... I am sure a lesser CNG/electric hybrid could move a. S-10 LLV (postal vehicle)

 

[Steve]

Ironicall TSR and Obama have alot in common...

Neither one wants real world applications of advanced technology to work if it includes the old tried and true fossil energy.. so they dismiss any opponents ideas as absurd.. and they are both out of touch with the "real" world, isolated in a bubble of their own little world..

if the large tractor article didn't teach you anything...

well TSR.. here is a example that might..

Peterbilt rolls out new diesel-electric hybrid

Peterbilt Motors Co. has debuted a Model 335 hybrid electric tractor that combines Eaton's Hybrid Electric power system with a Paccar PX-6 engine. Designed for applications such as beverage hauling and regional delivery, the system stores energy during stopping through a process known as regenerative braking, reusing it during acceleration. According to the company, the process can save up to 25% in fuel economy in local haul applications.

Other Peterbilt hybrids include the Model 330 Hybrid Electric for short haul P&D applications; the Model 320 Hydraulic Launch Assist (HLA) for vocational and stop-and-go applications; and the Model 386 Hybrid Electric vehicle for long-haul applications. The Model 330 is currently available, while the Model 320 and 386 vehicles are still in development.

hey if it good enough for Bud,.. then it should be good enough for a bus...

 

[Steve]

while i am not an advocate of huge fan of CNG as I feel it has several drawbacks as a primary fuel. technology is advancing and coupled with electric they seem to be making huge strides.. despite the lack of Obama support..

What's the difference between gasoline, natural gas and diesel engines?
A gasoline engine is a stoichiometric engine, which uses an efficient combination of air and fuel for total combustion. It intakes a mixture of gas and air, compresses it and ignites it with a spark (spark ignition). Most gasoline engines run in light duty vehicles such as passenger cars and small trucks.

A diesel engine is a heavier duty product designed for work in industrial, automotive, and truck applications. It takes in only air at the beginning of the cycle, compresses it and then injects fuel into that compressed air. The heat of the compressed air lights the fuel spontaneously. So diesel engines operate with compression ignition (no spark plugs). The compression of fuel and air is at a much higher compression ratio, which results in better efficiency and higher power.

A natural gas engine is a combination of the two. For example, the Cummins Westport line of spark ignited natural gas engines are based on the Cummins diesel platform, and share diesel life and durability, but they've been designed for optimal performance using clean burning alternative fuels. Spark Ignited like a gasoline engine, but operating with much leaner air/fuel mixture results in a tremendous emissions advantage with diesel like power and torque needed for a heavy duty application, such as a refuse truck or bus.

now add in a battery bank, efficient electric motors.. and surprise surprise.. you have a CNG/E hybrid bus... that saves money and fuel..

like this...

 

[Steve]

I thought I would at least get a response ... maybe I wasn't nice enough.. or didn't share enough..


but while working I thought about a program I was involved with in the military.. I did some checking and feel that there is enough known that I can delve into what at one point was top secret information..

as it turns out the US Navy has a secret fleet of hybrid electric boats.. they could devastate our opponents , the quiet electric boats have a chilling effect,, silent and deadly,

even Japan had experimented with an electric sub at one point..

It is thus called the I-16-tou -- tou being Japanese for boat. Powered by a 600-horsepower electric motor, the sub could reach underwater speeds of 19 knots,

submarine was equipped with an electric motor driven by 224 two-volt batteries. The Type A class could reach 19 knots submerged.

our highly classified boats have a diesel to power them and then they could run on batteries for extended periods.

here is what I can tell you.

The two-stroke General Motors/Detroit Diesel V71-series engines are each fitted with two superchargers (one for each six cylinders) to pump the output to 425 hp for each engine. These diesels provide the twist to charge the giant 126-cell batteries used to power dual 825hp electric propulsion motors.

Specifications
Displacement: 805 tons light, 861 tons full, 56 tons dead
Length: 152 feet overall
Beam: 20 feet
Draft: 16 feet
Propulsion: Two 425hp GM/Detroit Diesel V71 two-stroke, supercharged diesel 12-cylinder engines; two 126-cell main storage batteries; two 825hp electric propulsion motors
Speed: 10 knots (11.5 mph) surfaced, 7.5 knots (8.6 mph) submerged (10 knot sprint, 3-4 knots sustained)
Depth: 1,500 feet operating, 3,000-plus feet during testing
Endurance: 15 days

it is hard to believe this navy boat is only powered by two 12 V71 diesels rate at a mere 425 HP... and two 825hp electric motors..

but the technology is making amazing leaps these days..

I did check with a friend and I can get you a tour if you would like..