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According to the Pew Research Center the top two public priorities for 2012, by large margins, are the economy and job creation. So surely the White House has a plan, and they do. And with a slight modification of the chart posted by TPM the other day, here it is:
More on higher energy taxes here and here, and why that growth line should be higher here.
Reuters reports that eight deepwater drilling rigs are expected in the Gulf of Mexico this year, which would bring the active deepwater contingent to 29 – just short of the number before the 2010 Macando accident. While that will be a positive step, here are some reasons to hold off popping the champagne corks:
The eight rigs are not yet in the Gulf, not yet working.While permit applications to work on Gulf jobs have been submitted, the rigs will return there only if the permits are approved.Given “A” and “B” above, it’s still premature to talk about Gulf drilling being back to normal or “close to pre-moratorium levels.”The eight rigs would bring the Gulf rig count to “just short of the level” before the administration’s permit moratorium, not equal to levels of two years ago.But here’s the most important point missed by the report: The lost Gulf production caused by the moratorium – the difference between where production is now and where it was forecast to be by government officials a couple years ago.
According to the Energy Information Administration, Gulf production fell from 1.55 million barrels per day in 2010 to 1.32 mb/d in 2011, and was estimated to fall to 1.23 mb/d this year. That’s a 21 percent decline. But look at EIA’s 2010 forecast. Two years ago production was predicted to reach 1.76 mb/d this year. The difference between that forecast and the most recent Gulf production estimate is a whopping 30 percent.
Here’s a chart we’ve used before to illustrate the gap:
API’s Vice President for Policy Analysis Kyle Isakower:
“We should not forget that the (December 2011) Quest study demonstrated that without the moratorium, the rate of drilling was projected to increase, not just stay flat. We remind those following this issue that the baseline they should compare current levels to is the previously planned activity level, not just the activity level at the time the moratorium was put in place.”
A year ago this week the FracFocus.org online chemical disclosure registry was created, and what a year it has been: 130 companies logging in the chemicals used in the hydraulic fracturing of more than 15,000 wells. More than that, the site is information rich on fracking, groundwater protection, state regulatory efforts and more.
The registry was developed by the Groundwater Protection Council and the Interstate Oil and Gas Compact Commission. Most importantly, it has been embraced by the oil and natural gas industry as a useful response to legitimate questions about the pressurized fluids – 99.5 percent water and sand, 0.5 percent chemicals – used to fracture subterranean shale formations, freeing natural gas and oil.
According to a report in The Oklahoman, the site has become a clearing house for state and federal regulators fielding questions about hydraulic fracturing. “That's what we intended,” said Gerry Baker, the Interstate Oil and Gas Compact Commission’s associate executive director. Officials estimate about 75 percent of all wells drilled in the U.S. are accounted for on FracFocus.
Transparency equals information, which fosters confidence in communities where hydraulic fracturing is under way. Community support is an essential element in the process that is driving an energy revolution, seen in North Dakota, Pennsylvania, Texas, Ohio and other states.
Happy birthday, FracFocus – and many more!
