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Oklahoma drilling regulator calls spike in quakes a ‘game changer’

A spike in earthquakes across Oklahoma is forcing the state’s energy regulator to urgently consider tougher restrictions on drilling activity, a spokesman said on Wednesday, calling it a "game changer." From June 17 to 24, there have been 35 earthquakes of magnitude 3.0 or greater in the state, according to the Oklahoma Geological Survey. Particularly worrying for regulators, some of the recent quakes occurred in the Oklahoma City metropolitan area, where there are no high-volume wastewater injection wells. The spike in quakes comes roughly two months after new rules governing the disposal of briny wastewater from drilling took full effect. Drillers were directed by the Oklahoma Corporation Commission (OCC), which regulates the oil and gas industry, to stop disposing wastewater below the state’s deepest rock formation, believed to be one of the main causes of the quakes, and to reduce the depth of wells that already go that deep. […]

Posted On : Published By : Tom Whipple
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IHS examines next big deal in U.S. shale

IHS finds emerging shale basin straddling border between Texas and New Mexico doing well despite the downturn in the crude oil market. Photo by Christopher Halloran/Shutterstock HOUSTON, June 24 (UPI) — The Wolfcamp Delaware basin, a shale play straddling the Texas border with New Mexico, could be the next big deal, analysis published Wednesday from IHS found. "The Wolfcamp Delaware has promise, but right now, it is considered an adolescent in terms of its maturity," Reed Olmstead, manager of the North American analytics at IHS Energy, said in an emailed statement. The U.S. Energy Information Administration said in a drilling productivity report output from key shale basins is expected to dip lower starting in July. Low crude oil prices leaves companies with less money to spend on exploration and production and many key shale states are feeling the impact. North Dakota’s rig count is hovering near all-time lows and […]

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Alaska Sen. Lisa Murkowski ties Iran to U.S. oil export debate

Sen. Lisa Murkowski, R-Alaska, said crude oil prices would likely fall if more Iranian oil enters the market. File Photo by Kevin Dietsch/UPI WASHINGTON, June 24 (UPI) — Iranian sanctions should stay in place as long as policymakers keep a ban on domestic crude oil exports in force, a report from U.S. Sen. Lisa Murkowksi read. Debate is heating up ahead of a June 30 deadline to finalize a framework agreement that would give Iran sanctions relief in exchange for assurances against a nuclear weapon program. Iran, under the terms of a November 2013 agreement meant to curtail nuclear advancements, is limited to exports of around 1 million barrels per day, about half of the country’s full potential. The U.S. Treasury Department estimated Iran was out about $40 billion in revenue last year as a result of sanctions. Murkowski, R-Alaska, chairwoman of the Senate Energy Committee, said crude oil […]

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Two Saltwater Leaks in North Dakota

Health Department Investigating Impact on Wetland Spill Threatens Wetland Two separate saltwater spills in North Dakota this week have health officials scrambling to assess the damage and monitor the environmental impact of nearby wetlands. News agencies from across the state reported that 50 barrels of brine were spilled at a site in Burke County owned by Petro Harvester Operating Company in Burke County. Company officials also indicated they believe that the damage might not have been an accident. Karl Rockeman, head of the NDDoH division of water quality said “The company believes someone damaged the pump jack at the well head. They’re alleging that it was intentional.” A second unrelated spill was reported by Condor Petroleum, Inc. in Divide COunty and involved one barrel of oil and 39 barrels of brine were spilled. NDDoH officials are evaluating a nearby wetland for water quality impacts. Health department officials report that […]

Posted On : Published By : Tom Whipple
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Exxon Mobil Stops Pumping Oil off Santa Barbara After Spill Crippled Pipeline

The oil company temporarily ceased operations last week after Santa Barbara County rejected its emergency application to truck oil to refineries , spokesman Richard Keil said. A Santa Barbara County official said the company’s problem didn’t constitute an emergency and it could go through the normal procedure to get a permit to truck oil. Federal regulators investigating the cause of the spill have said the 2-foot-wide pipe was corroded where it ruptured. Exxon Mobil had cut daily production on the Hondo, Harmony and Heritage rigs from 30,000 barrels to 10,000 barrels and was storing it at the company’s plant in Las Flores Canyon, 15 miles west of Santa Barbara. The plant separates water and natural gas from crude, and another company processes the natural gas. The plant was capable of storing up to 540,000 barrels of crude, according to Santa Barbara County. The company said it had expected to […]

Posted On : Published By : Tom Whipple
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Judge’s order delays BLM’s implementation of fracing regulations

A federal district judge in Wyoming temporarily delayed the US Bureau of Land Management’s implementation of its recently issued hydraulic fracturing regulations. Judge Scott W. Skavdahl issued a stay on June 23 to give the US Department of the Interior agency until July 22 to submit a full administrative record in legal challenges by four states and two independent oil and gas producers’ associations. The regulations, which were scheduled to take effect on June 24, effectively have been delayed until early August. BLM is consulting with the US Department of Justice about Skavdahl’s decision, a Washington spokesman told OGJ. “While the matter is being resolved, BLM will follow the court’s order and will continue to process applications for permits to drill and inspect well sites under its preexisting regulations,” he said. DOI issued its final rule for fracing regulations on onshore public and Indian tribal lands earlier this year […]

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Scotland in a huff over wind energy subsidies

Scotland wants to British representatives to explain moves to lessen the government support for onshore wind energy developments. UPI/Pat Benic LONDON, June 24 (UPI) — The Scottish government said it wants the British energy secretary to come to its capital to explain the reasons behind a cut in wind energy subsidies. "The Scottish government has been clear that onshore wind should be able to compete with other technologies," Scottish Energy Minister Fergus Ewing said in a statement Wednesday. London announced plans to end public subsidies for new onshore wind farms starting in April 2016. Last year, the $1.2 billion in government support helped onshore wind power generate 5 percent of total British electricity and bring the region closer to its climate change goals, the British government said. The Scottish government countered that London’s proposal was stacked against it as nearly 70 percent of the installed onshore wind power is […]

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Norway’s oil and gas production up

Norwegian government says oil and natural gas production increased in May in a possible sign of stability in a weak crude oil market. File UPI/Shutterstock/James Jones Jr. OSLO, Norway, June 24 (UPI) — Oil and natural gas production from Norwegian basins increased last month, with oil output up 2.4 percent year-on-year, the government said Wednesday. The Norwegian Petroleum Directorate, the nation’s energy regulator, said oil production in May was 1.51 million barrels per day, which is 2.4 percent above May 2014 and 1 percent above what the regulator expected. Total sales of natural gas were 307 billion cubic feet, also an increase from the previous month. Production figures come amid modest stabilization in the crude oil market, with prices about 25 percent higher than early 2015 lows. After the Norwegian government in January handed out 54 licenses for operations in the North, Norwegian and Barents seas, Energy Minister Tord […]

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ADB: Poor face greater climate risks

Asian Development Bank finds those in poverty face a greater risk from the threat of climate change. File Photo by UPI Photo/Mohammad Kheirkhah. MANILA, June 24 (UPI) — A report from the Asian Development Bank finds widening income gaps in the Asia-Pacific leaves the poor more exposed to the risks of climate change. Vinod Thomas, general director of an independent evaluation at the ADB, said wealth gaps in the region have secondary consequences . "Climate change hurts the poor disproportionally," he said. "Environmental shocks push the poor into direr straits. Hence, responding to climate change helps to reduce inequality." The bank, in an annual review of the Pacific energy regime , said the region’s heavy reliance on imported fossil fuels leaves it particularly vulnerable to foreign markets. The bank said its regional investments of more than $500 million by next year will support a low-carbon transition. Asian economies, the […]

Posted On : Published By : Tom Whipple