Gov. Hickenlooper working overtime to bring toxic waste and pollution to your neighborhood!

A lot’s changed since 1955 when a gallon of gas was about 29 cents. One thing that hasn’t changed are Colorado’s fines for oil and gas drilling violations – despite a huge drilling boom and large increase in spills over the past several years. Under current law, most violations can’t be fined more than a $1,000 per day, with an overall cap of $10,000.

And it turns out that the state rarely enforces these laws. Analyses by the Denver Post and Fort Collins Coloradoan found that that state regulators rarely fine violators who pollute, and less than 7 percent of industry violations since 1996 have resulted in fines.

The Parachute Creek spill, caused by Williams, has polluted soil and water with cancer causing benzene and yet 56 days later, Williams has yet to be fined for polluting and risking public health.

Despite all of this, not only has Governor Hickenlooper failed to stand up for Colorado families and protect public health, but he’s actually working overtime to help make it easier for the oil and gas industry to pollute your water and communities.

According to a new report from the Center for Western Priorities, six oil and gas companies were responsible for 85 percent of all the spills that resulted in water contamination last year. Turns out that Governor Hickenlooper’s ‘besties’ Anadarko Petroleum subsidiary and Noble Energy, Inc. (of the Anadarko-Noble loophole) were two of the six big polluters.

Earlier this week, Fox 31 Denver reported that Gov. Hickenlooper watered down legislation to protect public health and water by strengthening oil and gas drilling violation fines.

Apparently, these laws just aren’t lax enough for Governor Hickenlooper and his oil and gas industry boosters. According to the Fox 31’s news coverage:

“Andy White, the governor’s [Hickenlooper] lobbyist on all oil and gas-related legislation…sided Friday with Republicans on the Appropriations Committee and stripped those provisions — the minimum daily fine and the removal of an overall cap on fees — from the bill before sending it to the Senate floor.”

Now the question is: Will the state legislature do the right thing – protect public health and water- by holding the oil and gas companies responsible when they pollute or will Gov. Hickenpuppet continue doing the bidding of the oil and gas industry to the detriment to Colorado families and communities?

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PetroChina 2012 Net Below Forecast; To Speed Up Overseas Expansion

HONG KONG - PetroChina Co. aims to speed up overseas acquisitions, exploration and production even after its net profit lagged behind analysts' expectations, as China's largest listed oil company by output hopes to secure more resources to feed growing domestic demand.

Beijing-based PetroChina aims to produce 200 million metric tons of oil and gas a year by the end of 2015, 10% more than the record 181.8 million tons produced last year, Vice President Sun Longde told reporters in Hong Kong Thursday.

The company is seeking acquisition targets in Central Asia, Middle East, North America, Africa and Asia, Mr. Sun said, but didn't name any targets.

"Over the next three years, we will continue to increase our international presence. Overseas production will account for 50% of the company's total oil and gas production by 2015 [versus 10% last year]," Mr. Sun said.

The ambitious plan is an extension of ex-chairman Jiang Jiemin's push to expand beyond China's shores. Mr. Jiang resigned as chairman of PetroChina and China National Petroleum Corp. Monday to head China's State-owned Assets Supervision and Administration Commission. The change is effectively a promotion for Mr. Jiang, as he will now oversee all of China's non-financial state-owned assets, including PetroChina and its parent, CNPC.

Since 2007, CNPC has invested $12 billion in oil and gas projects in Canada, Australia, the U.S. and France, according to data provider Dealogic.

PetroChina is speeding up exploration and production of natural gas, in response to a sharp rise in domestic natural gas consumption because of the government's push to encourage the use of cleaner fuels.

However, its natural gas business has been incurring losses since last year, because it needs to procure expensive natural gas imports to meet rising demand, but has to sell at government-set prices that are lower than import costs.

Its natural gas and pipeline business swung to an operating loss of 2.11 billion yuan (US $339.5 million) in 2012, from an operating profit of 15.5 billion yuan.

Mr. Sun said he is positive about China's natural gas market this year, as the Chinese government could roll out a new pricing mechanism and increase domestic gas prices.

"We suffered a total of 41.9 billion yuan in losses from importing piped natural gas from Central Asia last year. As gas imports have dented our profitability, we expect the government to accelerate natural gas pricing reforms," he said.

PetroChina's revenue rose 9.6% to 2.2 trillion yuan in 2012 due to increases in oil and gas output. However, its net profit fell 13% to 115.33 billion yuan from 132.96 billion yuan in 2011, because of losses from its natural gas and refining businesses. It was below the average 125.1 billion yuan forecast of 29 analysts polled earlier by Thomson Reuters.

High crude costs squeezed its downstream refining and chemical operations last year as China's fuel-pricing system prevents refiners from passing on higher costs to consumers.

To contain inflation, the government often forces the two largest refiners--PetroChina and China Petroleum & Chemical Corp., or Sinopec--to maintain prices for refined products even when crude oil prices surge in the global market.

Analysts expect domestic refining margins to improve in the first quarter after the government raised domestic gasoline and diesel prices by 3.5%-3.8% in late February. The government will likely implement a new fuel policy in the near term, they said.

Copyright (c) 2012 Dow Jones & Company, Inc.

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PetroChina 2012 Net Below Forecast; To Speed Up Overseas Expansion

HONG KONG - PetroChina Co. aims to speed up overseas acquisitions, exploration and production even after its net profit lagged behind analysts' expectations, as China's largest listed oil company by output hopes to secure more resources to feed growing domestic demand.

Beijing-based PetroChina aims to produce 200 million metric tons of oil and gas a year by the end of 2015, 10% more than the record 181.8 million tons produced last year, Vice President Sun Longde told reporters in Hong Kong Thursday.

The company is seeking acquisition targets in Central Asia, Middle East, North America, Africa and Asia, Mr. Sun said, but didn't name any targets.

"Over the next three years, we will continue to increase our international presence. Overseas production will account for 50% of the company's total oil and gas production by 2015 [versus 10% last year]," Mr. Sun said.

The ambitious plan is an extension of ex-chairman Jiang Jiemin's push to expand beyond China's shores. Mr. Jiang resigned as chairman of PetroChina and China National Petroleum Corp. Monday to head China's State-owned Assets Supervision and Administration Commission. The change is effectively a promotion for Mr. Jiang, as he will now oversee all of China's non-financial state-owned assets, including PetroChina and its parent, CNPC.

Since 2007, CNPC has invested $12 billion in oil and gas projects in Canada, Australia, the U.S. and France, according to data provider Dealogic.

PetroChina is speeding up exploration and production of natural gas, in response to a sharp rise in domestic natural gas consumption because of the government's push to encourage the use of cleaner fuels.

However, its natural gas business has been incurring losses since last year, because it needs to procure expensive natural gas imports to meet rising demand, but has to sell at government-set prices that are lower than import costs.

Its natural gas and pipeline business swung to an operating loss of 2.11 billion yuan (US $339.5 million) in 2012, from an operating profit of 15.5 billion yuan.

Mr. Sun said he is positive about China's natural gas market this year, as the Chinese government could roll out a new pricing mechanism and increase domestic gas prices.

"We suffered a total of 41.9 billion yuan in losses from importing piped natural gas from Central Asia last year. As gas imports have dented our profitability, we expect the government to accelerate natural gas pricing reforms," he said.

PetroChina's revenue rose 9.6% to 2.2 trillion yuan in 2012 due to increases in oil and gas output. However, its net profit fell 13% to 115.33 billion yuan from 132.96 billion yuan in 2011, because of losses from its natural gas and refining businesses. It was below the average 125.1 billion yuan forecast of 29 analysts polled earlier by Thomson Reuters.

High crude costs squeezed its downstream refining and chemical operations last year as China's fuel-pricing system prevents refiners from passing on higher costs to consumers.

To contain inflation, the government often forces the two largest refiners--PetroChina and China Petroleum & Chemical Corp., or Sinopec--to maintain prices for refined products even when crude oil prices surge in the global market.

Analysts expect domestic refining margins to improve in the first quarter after the government raised domestic gasoline and diesel prices by 3.5%-3.8% in late February. The government will likely implement a new fuel policy in the near term, they said.

Copyright (c) 2012 Dow Jones & Company, Inc.

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Gov. Hickenlooper’s ‘order’ to oil and gas commission to review fines an empty gesture

Recently, Gov. Hickenlooper put on a masterful show of playing a politician who cares about Coloradans. Unfortunately, it was just an act to distract from the fact that Gov. Hickenlooper successfully killed efforts to set mandatory minimum fines and increase caps on fines for oil and gas companies that pollute.  

After killing these measures, aimed at holding polluters accountable, Gov. Hickenlooper put out a press release ordering his oil and gas commission to ‘review enforcement, fines.’ In other words, he directed his commission to take a look into their abysmal record and get back to him. That’s not leadership, it was an empty gesture to cover his tracks.

Gov. Hickenlooper’s press release doesn’t do anything to strengthen Colorado’s woefully outdated laws, which include the lowest fines in the nation for polluters.  And it’s doubtful that the governor’s oil and gas commission, which includes oil and gas industry employees, will suddenly become competent at holding oil and gas polluters accountable.  An analysis by the Denver Post found that Colorado rarely fines oil and gas companies who pollute. According to the Coloradoan, less than 7 percent of industry violations since 1996 have resulted in fines.

Site of Parachute spill
Source: ecoflight

Last year, the industry reported 402 spills, of which 20 percent contaminated water. Six companies alone accounted for 85 percent of all the spills that contaminated groundwater – Anadarko, Noble Energy, Encana, PDC Energy, WPX Energy and Pioneer Natural Resources.

Not only are polluters not held accountable, but Gov. Hickenlooper has routinely rewarded some of the biggest oil and gas polluters in the state. In 2010 and 2011, Noble Energy caused more spills than any other operator in Colorado – 126.  Yet, Hickenlooper’s oil and gas commission gave Noble an ‘Outstanding Operator’ award.

Gov. Hickenlooper also gave Anadarko an ‘Outstanding Operator’ award in 2011, while last year, Anadarko subsidy Kerr-McGee was linked to 70 spills – more than any other operator – of which, 38 percent resulted in water contamination. With these awards, Gov. Hickenlooper has once again made it clear that he isn’t that interested in holding oil and gas companies accountable when they pollute.

Gov. Hickenlooper used the power of his office to kill stronger standards that would have held the oil and gas industry accountable when they pollute. He chose to put the interests of the industry ahead of what’s best for Colorado families and that’s a shame. Now, Gov. Hickenlooper is insulting Coloradans by acting as the concerned politician.

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Technip Wins Top Employer Prize

French oilfield services firm Technip announced Friday that it was among 20 European companies awarded the Top Employer in Europe 2013 prize by the CRF Institute – a specialist researcher into human resources policies and practices across a large number of employers in several countries.

To qualify as a Top Employer in Europe, organizations were required to successfully achieve the criteria set in at least five European countries. Technip was certified as a Top Employer in nine European countries: Belgium, France, Germany, Greece, Italy, the Netherlands, Norway, Spain and the United Kingdom.

Technip was also selected as one of Canada's 100 Top Employers for 2013 for "outstanding working conditions", the company added.

Technip Human Resources Director Thierry Parmentier commented in a statement:

"In 2012, we launched a new three-year action plan to further improve the quality and efficiency of our HR practices. The Top Employers 2013 certification is proof that our efforts in this field have paid off and that we are recognized as an employer of choice. At Technip, our teams are the cornerstone of each of our successes and we strive to identify and nurture talents, ensuring an equal opportunity for all in a safe and comfortable working environment."

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Former park rangers launch group to protect America’s national parks from irresponsible oil & gas drilling

Former park rangers have launched a new group, Park Rangers for Our Lands, to provide solutions to irresponsible plans to drill near America’s national parks.

The former park rangers are advocating for a balance between energy development and conservation, just at a time when Colorado Bureau of Land Management (BLM) Director Helen Hankins has tried to push forward widely-criticized plans to drill next to Dinosaur National Monument and near Mesa Verde National Park. These are two areas of primary concern for the group.

According to Richard Ellis, who spearheaded the formation of Park Rangers for Our Lands:

“Our parks are under siege. Oil and gas drilling is encroaching our public lands from all sides…We need the BLM to work with its neighbors at the National Park Service and come up with common sense ways to protect the parks, the air quality in the region, and keep the West a beautiful place to visit.”

Director Hankins has come under fire, numerous times, for her oil and gas leasing plans next to Dinosaur Monument’s visitor center, near Mesa Verde National Park, perilously close to Denver’s drinking water supplies, and in the agricultural heart of North Fork Valley.

Unfortunately, this hasn’t stopped Dir. Hankins from continuing to push to open these areas for oil and gas drilling (see graphic) – despite the risks to our water, public health, farms and economies. It’s time for Director Hankins to adopt a common sense approach to oil and gas leasing that includes up to date analysis, implementing national BLM reforms – to cut down on Colorado’s highest in the region lease protests- and taking into effect the concerns of local businesses, landowners and the National Parks Service.

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Key US Senator Starts Work on Natural Gas Bill, Mulls Export Restrictions

WASHINGTON - Sen. Ron Wyden (D. Ore.), one of the leading voices on energy policy in the U.S. Senate, is laying the groundwork for a broad-based energy bill that could impose new restrictions on natural gas exports and create additional oversight for hydraulic fracturing.

The bill represents the first serious attempt by Senate lawmakers this session to modernize U.S. energy laws following a surge in natural gas production that has transformed the energy landscape.

Mr. Wyden, who became chair of the Energy and Natural Resources Committee earlier this year, is planning a series of meetings in May to gather input from other senators, as well as state regulators, natural gas producers and environmental groups, an aide for the senator said. A bill could surface shortly after that.

The goal is to find common ground on often-divisive energy issues, leading to legislation that can attract enough support among committee members. "This is a collaborative process," the aide said.

The bill, which is in the early stages of being developed, will seek to address natural gas exports and hydraulic fracturing, or fracking. It will also tackle infrastructure issues and could look at ways to promote natural gas vehicles, people familiar with the issue said.

One of Mr. Wyden's most challenging tasks will be to find common ground on the issue of natural gas exports.

With nearly 20 companies seeking permission from the U.S. Energy Department to ship natural gas to countries lacking a free-trade agreement with the U.S., the issue has divided lawmakers and pitted energy producers like Exxon Mobil against manufacturers like Dow Chemical.

Mr. Wyden is one of the most vocal critics of exports. Like other skeptics, he's concerned swelling exports will lead to higher gas prices at home, stripping away a key competitive advantage for manufacturers that use natural gas as a raw material.

Energy companies say the U.S. government should steer clear of any restrictions. The hefty cost of building an export facility, which can top $7 billion, will inevitably weed out many applicants and serve as a natural control on export levels, they say.

Mr. Wyden has called for finding a "sweet spot" on exports-- allowing enough shipments to incentivize energy companies to continue producing natural gas but restrictive enough to keep a cap on domestic prices.

The top Republican on the committee, Sen. Lisa Murkowski (R., Alaska), is a strong supporter of domestic energy production and would likely reject strict new controls on exports.

Mr. Wyden could propose a specific limit on exports--equal to 10% of daily production, for example--or create a new legal definition for when exports should be blocked because they are no longer in the best interests of the U.S.

The boom in natural gas production has been swift and dramatic. Production increased 25% between 2007 and 2012, according to the U.S. Energy Information Administration, due in large part to advances in drilling and production technologies.

With thousands of wells dotting the U.S. landscape, private citizens and environmental groups have started to voice concern over the safety of hydraulic fracturing, a common practice whereby natural gas is unlocked from underground rock formations using a high-pressured mix of water, sand and chemicals.

The fight over fracking often revolves around the question of whether state officials are capable of ensuring safety. The natural gas bill could include additional forms of oversight by the federal government.

One possible proposal would allow states to develop their own standards and then require a federal agency such as the Environmental Protection Agency to sign off on the states' plans. Another proposal is to strengthen the role of the Interstate Oil and Gas Compact Commission, a group representing several states in their efforts to develop energy policies.

The natural gas bill will serve as a key test for senators responsible for guiding U.S. energy policy. The Energy and Natural Resources Committee has a reputation for bipartisanship but its members became gridlocked last session over a separate issue relating to oil royalties and failed to pass any meaningful legislation in months.

If the panel can pass a substantive natural gas bill, with new leadership and new members, it will be in a good position to tackle other thorny issues that have surfaced as a result of newfound energy supplies.

Copyright (c) 2012 Dow Jones & Company, Inc.

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STEER to Guide Oil, Gas Industry Integration in South Texas

The Eagle Ford shale play has transformed the South Texas landscape since Petrohawk Energy Corp. drilled the first Eagle Ford well in 2008. The Eagle Ford was named for a small town west of Dallas where the shale is visible on the surface as clay oil, and stretches from the Mexican border to East Texas. But new applications of hydraulic fracturing and horizontal drilling have unlocked Eagle Ford shale production the South Texas region.

Oil production from the Eagle Ford shale has grown from 358 barrels of oil per day (bopd) to 338,911 bopd in 2012, and condensate production has increased from 1,423 bopd in 2009 to 72,126 bopd last year. Natural gas production also grew in the Eagle Ford from 8 million cubic feet per day (MMcf/d) to 964 MMcf/d in 2012.

The Eagle Ford's success has primarily been due to its greater productivity compared with other traditional shale plays. Oil revenues and petroleum liquids production across the play also are supporting economic development even in a time of low U.S. natural gas prices, according to a March 13 report by the Eagle Ford Shale Task Force. With 235 rigs running in the play, the Eagle Ford could potentially become the most active oil and gas play in North America, with operators forecasting exploration and production activity to continue developing in the coming decades.

The Eagle Ford boom has brought jobs and economic growth to South Texas. In 2011, the Eagle Ford supported nearly 50,000 full-time jobs in 20 counties and contributed more than $25 billion to the South Texas economy, the Eagle Ford Shale Task Force reported. Earlier this year, Wood Mackenzie reported that oil and gas companies will spend $28 billion in capital expenditures (CAPEX) this year in the Eagle Ford, and expects Eagle Ford CAPEX from 2012 to 2015 to exceed the entire $116 billion Kashagan project in Kazakhstan, the world's most expensive standalone energy project.

However, the influx of oil and gas workers to the region has also strained local infrastructure, such as roads and medical services, and raised issues such as driver safety on South Texas roads, concerns about water usage, air emissions, landowner issues and the impact of hydraulic fracturing. These challenges have highlighted the need to plan for the region's future needs, including a sustainable workforce development and a sustainable housing plan for the Eagle Ford region.

To address issues surrounding development of the Eagle Ford shale and better integrate the oil and gas industry in the South Texas region, 11 of the largest Eagle Ford shale operators have founded the South Texas Energy and Economic Roundtable (STEER), with new offices in San Antonio.

Rigzone recently interviewed Omar Garcia, who will serve as president of STEER, to learn more about the organization.

STEER President Omar Garcia Source: South Texas Energy and Economic Roundtable (STEER).

Rigzone: You have extensive experience in economic and business development in the South Texas region. Before the Eagle Ford shale, what was the business climate like in South Texas? What was the difficulty level in recruiting/retaining businesses to the area?

Garcia: During my time with the Economic Development Foundation in San Antonio and the Economic Development Corporation in Corpus Christi, business and economic growth and development were steady in the Eagle Ford region. Retention of companies wasn’t a significant challenge as the local organizations understood the potential and the benefits of the area, while recruitment numbers also remained close to national averages. However, the activity associated with the Eagle Ford Shale has propelled that growth and development to an entirely new, unprecedented level, that is booming in comparison to both the region, as it were, and most of the United States today.

That is in large part why STEER was developed -- to help support positive developments that are beneficial for the communities that have nurtured and maintained this region for decades, and to help to successfully integrate the industry into the region.

Rigzone: What do you see as the biggest challenges for South Texas and the Eagle Ford play? Obviously, getting oil and gas companies to come to the region is not an issue, but are there other businesses that need to be attracted to the region to meet the growing population?

Garcia: There are some challenges that are important to address as activity surrounding the Eagle Ford Shale continues, including the recruitment of skilled labor, availability of housing, healthcare services and infrastructure. As an organization, STEER will help to ensure those topics are addressed by encouraging dialogue, providing resources and information and acting as a conduit to bridge communities and the oil and natural gas industry.

With the growth of the Eagle Ford Shale, there is a new need in the region for the expansion and development of many novel industries to support the shale activity, which is creating tremendous economic development opportunities for local companies. Those support industries include retail, the hospitality sector, construction and, perhaps most significantly, development of medical facilities.

This ripple effect creates holistic community growth that can be sustained across various industries – an effect that is already having a hugely positive impact on the local communities who are benefiting from the new economic prospects.

Rigzone: Had there been oil and gas exploration in South Texas prior to the Eagle Ford? If so, how does this compare with the Eagle Ford shale, and how has the Eagle Ford changed the South Texas landscape?

Garcia: Historically, there has been oil and gas drilling and exploration in South Texas, but never of this magnitude. The oil and natural gas industry has become one of the most fundamental economic drivers in the region since the discovery of the Eagle Ford Shale in 2008. To put it into perspective, this shale is considered to be one of the most noteworthy oil and natural gas discoveries ever found in the state, and is currently one of the most active shale plays in the world. The Eagle Ford Shale has truly redefined South Texas, and even the domestic oil and natural gas landscape as a whole.

Rigzone: What have been some of the issues that have cropped up with the Eagle Ford shale? How has this activity impacted the local community? What about relations with the local communities and state officials?

Garcia: The challenges that South Texas faces as a result of this incredible activity relate namely to infrastructure needs and environmental considerations. Along with rapid growth and expansive development comes a need to adapt and develop infrastructure in a given area, and many communities in the region are seeing an increased need to address this growth. STEER was initiated to help recognize those challenges, and ensure that both the industry and communities are able to learn about these challenges and communicate effectively to facilitate the development of positive solutions.

In terms of environmental concerns, there is a large portion of the population, nationally, that may not understand the complexities and demands of the regulatory institutions in this region. The oil and natural gas industry is one of the most heavily regulated industries in the country, and is subject to federal, state and local regulations that oversee all aspects of the industry, from initial permitting to wastewater disposal.

STEER is connecting the oil and natural gas industry with local officials, regulatory bodies, legislature and South Texas Communities to help bridge any gaps in communication or understanding surrounding the Eagle Ford Shale in the region.

Rigzone: What has prompted the decision to establish this group now? Have other groups been established/attempted? Do you anticipate companies besides the 11 initially involved to join anytime soon?

Garcia: STEER was established by 11 of the largest operators in the Eagle Ford Shale region including: Anadarko, Chesapeake Energy Corporation, ConocoPhillips, EOG Resources, Lewis Energy Group, Marathon Oil, Murphy Oil, Pioneer Natural Resources, Shell, Statoil and Talisman Energy.

The operators saw a need in South Texas to maintain a cohesive and collaborative stakeholder relations effort throughout the Eagle Ford Shale and developed STEER to lead that initiative.

There are truly no other groups like STEER; we are the first regional oil and natural gas trade association that is specifically focused on South Texas.

STEER does have an established membership program we do anticipate other organizations becoming involved with STEER in the future and growing our membership base.

Rigzone: What kind of communication pathways were being used by oil and gas companies to state officials and local communities? Why do you think these were not effective?

Garcia: Prior to the development of STEER, the individual member companies did a great job communicating with officials, communities, academia and beyond. STEER was founded to be an interconnected and collective resource for the region as related to the Eagle Ford shale. The purpose of STEER is to serve as channel for both intra-organizational communication, to ensure that operators are sharing information and resources with one another for the betterment and enhancement of the communities and the industry, and also to be a resource for external communication – to be the recipient and facilitator for questions, inquiries and information.

Rigzone: What kind of strategies will you employ to address the challenges of infrastructure?

Garcia: STEER is committed to staying informed and educated about all challenges and issues as they relate to the Eagle Ford Shale, including infrastructure. With that, we will continue to act as a resource to help the industry and the communities to understand these challenges in order to make positive solutions for the region. STEER’s purpose is to gather and share resources and information in order to help inform stakeholders about challenges.

Rigzone: Some international companies have acquired interests in the Eagle Ford shale. What kind of challenges come with having international companies in the region?

Garcia: We welcome the international investment and attention that the Eagle Ford Shale has helped bring to Texas. These companies are working toward developing a comprehensive understanding of the region and the industry, and STEER is here to help serve as the conduit between these companies, industry and the communities of South Texas.

Karen Boman has more than 10 years of experience covering the upstream oil and gas sector. Email Karen at kboman@rigzone.com.

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Western Energy Alliance wants taxpayers to front $44 billion in handouts to most profitable companies in the U.S. – billion dollar oil and gas industry

The Western Energy Alliance has once again proved that they’ll go to any length to increase the profit margins of the billion-dollar oil & gas industry. Now they’re lobbying for $44 billion dollars in taxpayer-funded handouts over the next 10 years, despite the fact that the oil and gas companies are some of the most profitable in the U.S.

ExxonMobil and Chevron topped the Fortune’s rankings of the world’s most profitable companies in 2012. In fact, four of the top ten companies on the Fortune 500 list were oil and gas companies. And the big five oil companies, BP, Chevron, ConocoPhillips, ExxonMobil and Shell, made a combined profit of $118 billion dollars last year and $137 billion in 2011. 

The oil and gas industry has more than proven that they don’t need these excessive, wasteful subsidies – they’re making billion dollar profits while American taxpayers are paying more at the pump.  

Unfortunately, this is just the latest example of Western Energy Alliance putting profit margins of a billion dollar industry ahead of what’s best for Westerners.

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Technip Wins Top Employer Prize

French oilfield services firm Technip announced Friday that it was among 20 European companies awarded the Top Employer in Europe 2013 prize by the CRF Institute – a specialist researcher into human resources policies and practices across a large number of employers in several countries.

To qualify as a Top Employer in Europe, organizations were required to successfully achieve the criteria set in at least five European countries. Technip was certified as a Top Employer in nine European countries: Belgium, France, Germany, Greece, Italy, the Netherlands, Norway, Spain and the United Kingdom.

Technip was also selected as one of Canada's 100 Top Employers for 2013 for "outstanding working conditions", the company added.

Technip Human Resources Director Thierry Parmentier commented in a statement:

"In 2012, we launched a new three-year action plan to further improve the quality and efficiency of our HR practices. The Top Employers 2013 certification is proof that our efforts in this field have paid off and that we are recognized as an employer of choice. At Technip, our teams are the cornerstone of each of our successes and we strive to identify and nurture talents, ensuring an equal opportunity for all in a safe and comfortable working environment."

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Statoil Gives Go-Ahead to Smorbukk South Extension Project

Statoil reported Wednesday that, along with its partners, it has decided to go ahead with the Smørbukk South Extension project on the Åsgard development, offshore Norway.

The extension holds estimated recoverable reserves of 16.5 million barrels of oil equivalent and will be developed with a new subsea template that will be connected to existing infrastructure in the area.

Recovered gas will be re-injected into the reservoir in order to maintain pressure as oil is drained out of it. The field will be connected to the Åsgard A FPSO installation.

Astrid Helga Jørgenvåg, Statoil's asset owner for Åsgard, commented in a company statement:

"We've matured a profitable project out of a discovery from 1985. Experience from Åsgard operations, existing infrastructure and a bit of patience have contributed to an investment decision for this project.

"In addition we will consider the use of a new well technology that will increase the recovery from this type of reservoir. Smørbukk South Extension is a strategically important project that emphasizes our ambitions to increase recovery from mature areas."

The extension project will use standard equipment, and Statoil has already made investments to minimize the time from project sanction to production start-up, the firm said.

Statoil will now award several contracts for the development, it added.

Drilling operations are planned to begin in early 2015, with production start-up planned for September 2015. Total investments for the project are estimated to be around $595 million.

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Group’s new oil shale report contains wildly inaccurate claims

The Institute for Energy Research (IER), recently posted a blog about oil shale that doesn’t have its facts straight.

The IER blog falsely claims that the federal government put oil shale resources ‘under lock and key’. Oil shale companies have been awarded billions in taxpayer-funded subsidies and received research, development, and demonstration (RD&D) leases on publicly owned lands that don’t require the payment of bonuses, rents, or royalties.

Despite more than a century of failed oil shale projects and billions of dollars risked, taxpayers are still subsidizing oil shale research and development. Currently, there are seven such RD&D leases being pursued in Colorado and Utah.  The companies include: Shell, American Shale Oil (AMSO), Enefit, ExxonMobil, and Natural Soda Holdings.

Chevron also had an RD&D holding, but abandoned it last February in order to focus on viable energy sources – hardly the first oil shale experiment to go

bust. On Black Sunday, Exxon closed its Colony oil shale project, which put more than 2,000 out of work and devastated the economy of Colorado’s western slope for years.

Arial photo of a pile of oil shale ‘ash’ in Estonia. Source: EcoCrete Project.

In their blog, IER also highlights Estonia, considered the world leader in oil shale, as the prime example of successful oil shale development – but that’s no

t factual either. Oil shale isn’t economically viable in Estonia, has caused significant water, air and land pollution, and is highly controversial.

The head of Estonia’s biggest oil shale company, Eestia Energia – known as Enefit in the U.S. – has admitted that oil shale is not profitable without large taxpayer subsidies. Underscoring this point was Moody’s recent move downgrading Enefit’s credit rating to negative, over concerns that they can’t make oil shale profitable.

In addition, oil shale is a dirty, polluting fossil fuel that’s responsible for 80 percent of all of Estonia’s pollution.  Enefit’s track record includes contaminated groundwater, creating 600-foot high mountains of oil shale waste that spontaneously ignite, and causing the emission of “lots of carbon dioxide.”

IER’s blog also boasts that there are huge oil shale deposits in the U.S. But these projections are irrelevant because oil shale isn’t a viable energy source and fails the basic economic test. In other words, the return on oil shale doesn’t outweigh the investment. The amount of energy and water that it takes to superheat, mine and process oil shale – which is actually fossilized algae – is more than the energy that oil shale provides. If you need more evidence just look to the billion dollar oil and gas industry, which has almost limitless resources, and has 100 plus years of failed oil shale experiments to show for their efforts.

The IER can spin oil shale all day, but it won’t change the cold hard fact that oil shale isn’t ready for prime time.

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SandRidge CEO Sells Shares Days After Truce With Activist Investor

HOUSTON - SandRidge Energy Inc. Chief Executive Tom Ward sold about 13.5% of his SandRidge stock days after the company reached a truce with an activist investor that could lead to the executive's departure.

Mr. Ward sold 3.7 million shares of SandRidge in two transactions Friday and Monday, netting about $21 million, according to a filing with the Securities and Exchange Commission. He still owns nearly 23.5 million shares, or close to 5% of SandRidge's shares according to figures from the company's website.

The move came in the wake of the partial success last week of a months-long campaign by hedge fund TPG-Axon Capital Management, which sought to replace SandRidge's board, including Mr. Ward. The campaign ended in a settlement, under which four of the fund's nominees would join the board.

Under the deal, Mr. Ward will keep his position as chief executive and board chairman for the time being, but the board will have to decide his fate by June 30. If it keeps him in place, three current SandRidge board members will have to leave and an additional nominee by TPG-Axon will join, giving the activist investor a majority of the seats on the board.

If Mr. Ward is terminated, current chief financial officer James Bennett will become interim chief executive and the board will conduct a search for a successor.

A spokesman for SandRidge did not immediately respond to a request for comment.

The board's decision will come after a review of the company's strategy and costs, including an independent firm's review of land deals the company entered with entities controlled by relatives of Mr. Ward, according to the settlement announced last week.

Copyright (c) 2012 Dow Jones & Company, Inc.

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Gov. Hickenlooper fails to fine company responsible for toxic Parachute spill

Yesterday, Gov. Hickenlooper’s department of public health and environment (CDPHE) announced that they won’t levy fines against Williams Cos. for spilling 10,000 barrels of natural gas and toxic waste into Parachute Creek and the surrounding area in western Colorado.

Earlier this month, the Governor lobbied to water-down legislation to toughen fines for oil and gas companies who pollute, despite Colorado’s well-documented problems of spills, and lowest in the nation fines. The Governor’s actions ultimately led to the death of the legislation.

The Parachute spill, which occurred in the winter but wasn’t reported until the spring, has polluted water with cancer-causing benzene. In early May, benzene levels in the creek exceeded the federal safe drinking water standard.

In their statement, CDPHE said that they aren’t fining Williams because the spill “was not due to negligence but to accidental equipment failure.” So now Gov. Hickenlooper’s department of public health and environment only “protect[s] and improve[s] the health of Colorado’s people and the quality of its environment” part of the time? We didn’t find that caveat in their mission statement.

This isn’t the first time that the Hickenlooper Administration has failed to hold polluters accountable. A 2011 Suncor spill that polluted the South Platte River is still being cleaned up nearly two years later – and yet Suncor hasn’t been fined for dumping toxic levels of benzene into the river.

Unfortunately, it appears that the Hickenlooper Administration is fine with oil and gas companies polluting our water and communities with waste and toxins – otherwise, why not hold them accountable for polluting by enforcing fines?

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Gazprom Could Bail Out Cyprus in Gas Deal

Russian state gas giant Gazprom may be in talks with the Republic of Cyprus government about a bailout of the cash-strapped country in return for exploration concessions in its offshore territories, according to reports.

Cyprus' parliament rejected a European Union bailout package Tuesday that included a measure that would have seen everyone with a savings account in the country take a one-off levy of up to 9.9 percent on savings of more than $25,800 (EUR 20,000). Many savers in the country include Russian expats.

Instead, Cyprus could make a deal with Gazprom, which has offered the Republic of Cyprus a plan in which Gazprom would undertake the restructuring of the tiny country's banks in exchange for exploration rights for natural gas in the country's Exclusive Economic Zone, according to the Greek Reporter website.

However, although Russian and Cypriot finance ministers have been holding talks over the Mediterranean island's financial crisis, Gazprom has not confirmed whether or not it is involved.

Cyprus has already granted concessions to several companies in its EEZ, including Italy's ENI, Korea Gas Corporation, Total and Noble Energy. In December 2011, Noble discovered the Aphrodite gas field, which it estimates holds up to 9 trillion cubic feet of gas.

A former engineer, Jon is an award-winning editor who has covered the technology, engineering and energy sectors since the mid-1990s. Email Jon at jmainwaring@rigzone.com.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

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UK Budget: Decom Tax Relief Welcomed by Oil, Gas Sector

Measures announced by the UK Chancellor in his 2013 Budget to guarantee tax relief on the decommissioning of oilfields on the UK Continental Shelf have been welcomed by the UK oil industry.

Oil & Gas UK Chief Executive Malcolm Webb commented in a statement:

"The industry has been working closely with the Treasury since the 2011 Budget to resolve the long-standing problem of uncertainty on decommissioning tax relief. The measures announced today will for the first time ever give companies the certainty they need over the tax treatment of decommissioning.

"At no cost to the Government, it will speed up asset sales and free up capital for companies to use for investment, extending the productive life of the UK continental shelf."

Decom North Sea (DNS), a forum specializing in UK decommissioning, said the new measures will boost the sector by giving increased certainty, in turn leading to new jobs and investment in new technology. DNS pointed out that decommissioning expenditure in the North Sea is forecast to top $1.5 billion (GBP 1 billion) within a few years.

"The Chancellor's confirmation of tax relief through Decommissioning Relief Deeds will help ease one of the greatest concerns facing the North Sea industry and lead to investment and ultimately more jobs," DNS Chief Executive Brian Nixon said.

"Once assets have been recognized as nearing the end of their economic lives, we believe the Budget will lead to operators being able to move forward with their decommissioning plans, which will in turn help to reassure the hundreds of supply chain companies and encourage them to consider investment in new equipment or tooling or to attract new staff."

Meanwhile, Derek Leith – head of oil and gas taxation at Ernst & Young in Aberdeen, Scotland – pointed out that the announcement would act as a gateway to greater investment in the North Sea, creating an active market that is attractive to companies across the oil and gas industry, from super majors to niche operators.

"Cementing the promise of contracts that guarantee tax relief on costs associated with deactivating and dismantling oilfields during the lifetime of this, and future parliaments, removes another layer of fiscal uncertainty from the UK Continental Shelf and should facilitate the transfer of assets," Leith said.

"Smaller companies that had previously been priced out of potential deals will now be in a position to maximise recovery from existing infrastructure, while larger players will be able to free up capital to fund further exploration and production."

In his Budget, the Chancellor also announced that he would introduce a "generous" new tax regime designed to stimulate early investment in the UK's burgeoning shale gas sector.

The new shale gas tax regime will include a field allowance. Meanwhile, new planning guidance on shale gas projects, along with specific proposals to help local communities to benefit from shale drilling, would follow later in 2013, he said.

"Shale gas is part of the future and we will make it happen," Osborne said in his Budget statement to Parliament.

A former engineer, Jon is an award-winning editor who has covered the technology, engineering and energy sectors since the mid-1990s. Email Jon at jmainwaring@rigzone.com.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

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The Maine Players Attacking Renewable Energy: The Koch Brothers

In a new report, the Maine Conservation Alliance asks: are we debating renewable energy, or the Koch brothers’ profits?”

Maine’s renewable energy standards have been the prime target of the Koch Machine – front groups, think tanks, and legislators with financial ties to Koch Industries and its two billionaire owners: the Koch brothers.

The Renewable Portfolio Standard, which requires utilities to provide 30% of their energy through renewable sources, has led to $2 billion in investment and over 2500 local jobs. It has proven to be great for Maine’s economy – but it threatens the profit margins of fossil fuel companies like Koch Industries, which pumps 300 million tons of carbon into the atmosphere every year.

To dismantle the RPS, the Koch brothers have been extending influence through a legislative front group – the American Legislative Executive Council (ALEC). ALEC has contributed over $750,000 to political action committees, candidates, and parties in Maine. Senator Mike Thibodeau, one of the anti-RPS bill’s co-sponsors, has received over $15,000 from ALEC-affiliated organizations.

It is the civic duty of Mainers to decide for themselves what is best for the state’s environment and economy, not an out-of-state corporate interest. The Maine Conservation Alliance affirms that the economy is not for sale.

Filed under Uncategorized Tagged with Energy, oil, gas, clean energy, Renewables, Koch Industries, Fossil Fuels, Koch Brothers, ALEC, RPS, American Legislative Exchange Council, Koch, Maine, Renewable Energy Standard, Renewable Energy, electricity

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