New Energy Minister Faces Australian Cost Challenge

Gary Gray, a former Woodside Petroleum Ltd. corporate affairs chief, has been named Australia's new Minister for Resources and Energy following a cabinet reshuffle of the country's governing Labor Party.

The West Australian replaces Martin Ferguson in the role.

Industry bodies have welcomed Gray to the position, but warned he would be challenged by Australia's ongoing issue of the rising cost of doing business in the country.

The Australian Petroleum Production and Exploration Association (APPEA) believed Gray's appointment, while a positive move for the industry, came at a crucial time in its history.

David Byers, APPEA chief executive, said the industry was presently investing $208 billion (AUD $200 billion) in new projects, including seven major liquefied natural gas (LNG) ventures.

He added the industry was at a turning point, with numerous new projects on the drawing board, but not yet committed.

"Australian oil and gas project costs are among the highest in the world and there are several critical policy areas that require genuine reform if hurdles that currently hinder the local industry's ability to compete internationally are to be removed," he said.

"Most important of these is the need for a stable, predictable and competitive taxation regime that encourages exploration and development investments.

"The oil and gas industry's long-term projects need long-term stability. Yet over the past five years the industry has been confronted with a range of disruptive changes to the taxation regime, affecting the company and resources taxation settings."

The Chamber of Minerals and Energy of Western Australia (CME) also applauded Gray's appointment to the portfolio.

Reg Howard-Smith, CME chief executive officer, said it was good news the important portfolio had been given to a Western Australian, given the state's resources sector accounted for 46 percent of Australia's export income.

"Policy initiatives that focus on reducing costs, duplication and red tape will deliver ongoing economic benefits to all Western Australians," Howard-Smith said.

"Unfortunately we are becoming a less attractive place to develop resources projects when compared with global resource rich nations and investment may be driven to other lower cost regions because of additional layers of taxation and charges, which are continuing to drive up cost for doing business."

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.

View the original article here

New Energy Minister Faces Australian Cost Challenge

Gary Gray, a former Woodside Petroleum Ltd. corporate affairs chief, has been named Australia's new Minister for Resources and Energy following a cabinet reshuffle of the country's governing Labor Party.

The West Australian replaces Martin Ferguson in the role.

Industry bodies have welcomed Gray to the position, but warned he would be challenged by Australia's ongoing issue of the rising cost of doing business in the country.

The Australian Petroleum Production and Exploration Association (APPEA) believed Gray's appointment, while a positive move for the industry, came at a crucial time in its history.

David Byers, APPEA chief executive, said the industry was presently investing $208 billion (AUD $200 billion) in new projects, including seven major liquefied natural gas (LNG) ventures.

He added the industry was at a turning point, with numerous new projects on the drawing board, but not yet committed.

"Australian oil and gas project costs are among the highest in the world and there are several critical policy areas that require genuine reform if hurdles that currently hinder the local industry's ability to compete internationally are to be removed," he said.

"Most important of these is the need for a stable, predictable and competitive taxation regime that encourages exploration and development investments.

"The oil and gas industry's long-term projects need long-term stability. Yet over the past five years the industry has been confronted with a range of disruptive changes to the taxation regime, affecting the company and resources taxation settings."

The Chamber of Minerals and Energy of Western Australia (CME) also applauded Gray's appointment to the portfolio.

Reg Howard-Smith, CME chief executive officer, said it was good news the important portfolio had been given to a Western Australian, given the state's resources sector accounted for 46 percent of Australia's export income.

"Policy initiatives that focus on reducing costs, duplication and red tape will deliver ongoing economic benefits to all Western Australians," Howard-Smith said.

"Unfortunately we are becoming a less attractive place to develop resources projects when compared with global resource rich nations and investment may be driven to other lower cost regions because of additional layers of taxation and charges, which are continuing to drive up cost for doing business."

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.

View the original article here

Alaskan Villagers Challenge Alpine Satellite Permit Decision

Residents of a northern Alaskan village have challenged the U.S. Army Corps of Engineers' (Corps) issuance of a Clean Water Act (CWA) permit to ConocoPhillips for its fifth Alpine satellite field, citing the proposed project's negative environmental impact and the Corps failed to comply with the CWA and National Environmental Policy Act (NEPA) in its decision-making.

In a lawsuit filed this week in U.S. District Court in Alaska, seven residents of Nuiqsut, Alaska argued that ConocoPhillips' proposed plan to build a drilling pad, bridges and access road as part of the Alpine West CD5 project would permanently bury 58.5 acres of high functioning wetlands and streams, presenting a "serious risk" for catastrophic oil spills in the Colville River Delta, and would adversely impact the wildlife that rely on the Arctic Coastal Plain and Colville River Delta.

The residents, who rely on food gathered through subsistence hunting and fishing to feed themselves, also said the development could limit their ability to hunt and fish. The residents regularly visit the area where the drilling project would be located, and say they have had difficulty hunting on the east side of the Nigliq Channel because of ConocoPhillips' existing Alpine satellite facilities and expect further development in the Delta will negatively impact their ability to hunt.

The residents argued the Corps failed to provide reasoned analysis for least environmentally damaging practicable alternative determination (LEDPA) pursuant to CWA Section 404 permits, noting that a Section 404 permit could not be issued if an alternative to a water discharge with a less environmental impact exists. The CWA act prohibits the discharge of any pollutant into navigable waters unless authorized by a Section 404 permit.

The Corps in December 2011 had issued a CWA Section 404 permit to ConocoPhillips to allow the company to discharge fill material into the site where the drilling pad, 6-mile access road and bridge that would cross the Nigliq Channel of the Colville River.

ConocoPhillips had initially applied for a Section 404 permit for CD-5 in September 2005. In November of that year, the U.S. Environmental Protection Agency (EPA) determined that ConocoPhillips had not demonstrated that the proposed project was the LEDPA and did not provide enough information to support ConocoPhillips' decision that the roadless design proposed for the site was infeasible, or ConocoPhillips' proposed road was the environmentally preferable alternative.

The residents argued that the Corps had initially determined in its 2010 Record of Decision & Permit Evaluation (ROD) that the HDD pipeline alternative and no road to connect to the main Alpine facility with CD-5 was the least environmentally damaging practical alternative, but then reversed its decision in the 2011 ROD, finding that ConocoPhillips' preferred road and bridge alternative as the LEDPA.

"The Corps failed to discuss why facts and policies that were relevant to the 2010 decision, such as the risk of a catastrophic spill from the suspended pipeline, no longer support the finding that the HDD alternative is the LEDPA," according to the filing.

The residents also claimed that the Corps failed to comply with the National Environmental Policy Act (NEPA), which requires that environmental information be made public before decisions are made. The residents said the Corps did not prepare its own NEPA analysis for its Section 404 permit decision for CD-5, and failed to take a hard look at the direct, indirect and cumulative impacts associated with the project.

Additionally, the Corps relied heavily on materials not included in the Bureau of Land Management's 2004 Alpine environmental impact statement (EIS) to evaluate the direct, indirect and cumulative impacts of the CD-5 project. These materials were not subject to public review and comment as part of the NEPA process, which violates the public participation requirements of NEPA.

The residents said the Corps failed to provide any supplemental NEPA analysis that addresses changes in the proposed project, including new information regarding climate change, changes in industry practice, changes in federal land management within the National Petroleum Reserve Alaska, expanded oil and gas leasing activity offshore and resulting necessary onshore infrastructure, as well as new wildlife information.

"Failure to supplement the 2004 EIS with additional NEPA analysis violates NEPA," the residents argued.

The CD-5 site is located approximately 8.5 miles northwest of Nuiqsut and lies within the National Petroleum Reserve Alaska. CD-5 is a satellite field west of the Alpine field, one of the largest onshore oil fields discovered in North America in the past 20 years, according to ConocoPhillips' website. Initial production from the site is expected in late 2015.

Alpine is located approximately 40 miles west of the Kuparuk oil field. Other Alpine satellites include the Fiord, Nanuq and Qannik fields.

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

View the original article here

Environmentalists challenge West Wyoming gas compressor station

By Elizabeth Skrapits (Staff Writer) Published: November 23, 2012
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Local environmentalists are challenging UGI Energy Services' appeal of the Luzerne County Zoning Hearing Board's denial of a special exception to build a natural gas compressor station in West Wyoming.

Through their attorney Jordan Yeager, Luzerne County Citizens for Clean Air, the Philadelphia-based Clean Air Council and 32 residents recently filed a cross-appeal, asking the county court to uphold the zoning board's ruling and consider the opponents' additional reasons the project shouldn't be allowed.

On Sept. 4, the zoning hearing board denied UGI a special exception to build a compressor station with a utility building, yard and 150-foot radio tower on a 14-acre property off North Ridge Lane, near the Kingston Township border, in an agricultural zone. The facility would pressurize natural gas from a pipeline connecting with northern tier wells, then route the gas through the Transco interstate pipeline and an existing UGI Penn Natural Gas system to customers in the Wilkes-Barre/Scranton area.

During the Aug. 7 zoning hearing, approximately 44 residents testified as to concerns about health, safety and property values. UGI's witnesses consisted of two professional engineers, an air quality specialist and UGI's director of operations.

The findings released by zoning board attorney Stephen A. Menn after the hearing note that "Special Exception is not an exception to the Luzerne County zoning ordinance but is a use which is permitted unless under the circumstances the use would adversely affect the community."

Neither UGI nor the opponents "provided any evidence as to the safety of the operation … or of any direct health detriment to those who live in West Wyoming or neighboring communities," the board stated.

However, the board noted, "The overall concerns of how this facility would affect the community was convincing to the extent the Board Members believed that these objectives could not be met by (UGI) and its impact might be greater than might be expected under normal circumstances."

The ordinance does not define either natural gas compressor stations or utility buildings. The board determined a utility building is part of a utility, and that, essentially, UGI Energy Services did not qualify as a utility.

UGI appealed the board's ruling on Oct. 3.

The company argued in its appeal that, per testimony at the hearing, the closest house was half a mile from the site; that the facility and its three compressor engines would meet or be "well below" federal emissions limits; that noise control measures would be used; and that the facility would have numerous safety controls and a detailed emergency response plan would be prepared.

The appeal also states the zoning board's decision was "arbitrary, capricious, contrary to law and prior precedent," since in 2010 the board approved a compressor station and communication tower for Encana Oil & Gas USA Inc. in an agricultural zone.

In the cross-appeal, the opponents argue they did provide evidence that the compressor station is inappropriate for the site.

Pollutants from the facility "threaten the health, safety and welfare of surrounding landowners not only because of the type of emissions produced, but also because of the local topography and wind patterns."

Although in agreement with the board's ruling, the opponents criticized particulars of the board's decision in the cross-appeal.

The opponents state that UGI's application should have been denied because a compressor station is an industrial use not allowed in an A-1 Agricultural district under the zoning ordinance.

They question whether the Sept. 4 meeting was properly advertised, fault the board for not providing them with complete copies of the exhibits and condemn the board's decision not to allow certain interested parties to testify. For example, people from Kingston Township were not allowed to take the stand, although several residents' properties are very close to the proposed project.

A hearing date for the appeal has not been set.

eskrapits@citizensvoice.com, 570-821-2072

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View the Original article

Throwing Down An Energy Challenge

Let’s talk about a fundamental difference of opinion on the key energy issue of the day.

We say crude oil supply matters – in the context of global-market pricing, which affects fuel prices because the cost of crude accounts for 76 percent of what Americans are paying at the pump. More supply alters the energy equation, exerting downward pressure on crude prices. Energy Economics 101.

The president seems to disagree, saying there’s no “silver bullet,” while suggesting there’s not much that can be done to affect global markets and offer hope to beleaguered consumers. At the same time he tacitly acknowledges market forces work – but only from the side of the equation that reduces demand through efficiency and other measures.

We’re all for greater efficiency, but the president is ignoring the effect on markets of increasing demand. Or is he, because even as he scoffs at the notion of greater development of domestic oil and natural gas resources, there are conversations with the Saudis about increasing their production, talk of releasing oil from the Strategic Petroleum Reserve and pledges to Brazil that we’ll be customers for their offshore oil when it comes on line – all implying that, yes, supply matters.

Here’s one thing that’s absolutely clear. America’s oil and natural gas companies have a positive, pro-development, pro-jobs strategy to produce more energy right here at home. They believe America has energy options, not unending limitations, and they’re ready to accept the challenge of producing more oil and gas. API President and CEO Jack Gerard during a conference call with reporters this week:

“Despite what you may hear, we are an energy-rich nation, the world’s third-largest producer of oil. We have vast resources that we have not even begun to explore. And by safely developing our own resources of oil and natural gas, we can send a strong signal to the markets that America will control its energy future.”    

Here’s what Gerard is talking about:

Changing policies that are limiting offshore energy development to less than 15 percent of available federal areas.Returning the Gulf of Mexico to pre-2010 production levels.Reversing the downward trend of leasing and permitting on federal lands (so that public areas can match production on state and private lands in places like North Dakota and Pennsylvania).Approving the full Keystone XL pipeline, to bring upwards of 800,000 barrels per day of Canadian oil sands crude to U.S. refiners.Curb government’s enthusiasm for new regulatory layers on the development of the country’s ample shale resources.Shelving punitive proposals to raise taxes on a few oil and natural gas companies.

Each of the above would acknowledge what the government’s own data shows, that oil and natural gas are mainstays of this country’s energy present and future – rejecting an off-oil strategy that’s rooted in unreality.

Gerard:

“Sending a clear message to people who buy and sell crude oil that the United States is committed to reasserting itself as one of the world’s major oil producers would immediately put downward pressure on gasoline and other fuel prices.”

Gerard called out the administration on its energy claims:

“The administration says it’s already doing a good enough job promoting oil and natural gas development. Check the numbers, it says. We did, and they show oil and natural gas production on federal lands and waters has lagged behind development on private and state lands.”

And issued a challenge:

“Our industry would not be urging the administration to open the door to more development unless it was prepared to walk through that door, unless it envisioned investing its own capital in more projects that could produce more supply and jobs, just like the development that’s already occurring. … We once again urge the administration to act to promote more domestic resources of oil and natural gas. … If the administration will do these things, our companies will produce more American oil and gas.”

Additional resource: Talking energy with Fox News.

View the original article here

Throwing Down An Energy Challenge

Let’s talk about a fundamental difference of opinion on the key energy issue of the day.

We say crude oil supply matters – in the context of global-market pricing, which affects fuel prices because the cost of crude accounts for 76 percent of what Americans are paying at the pump. More supply alters the energy equation, exerting downward pressure on crude prices. Energy Economics 101.

The president seems to disagree, saying there’s no “silver bullet,” while suggesting there’s not much that can be done to affect global markets and offer hope to beleaguered consumers. At the same time he tacitly acknowledges market forces work – but only from the side of the equation that reduces demand through efficiency and other measures.

We’re all for greater efficiency, but the president is ignoring the effect on markets of increasing demand. Or is he, because even as he scoffs at the notion of greater development of domestic oil and natural gas resources, there are conversations with the Saudis about increasing their production, talk of releasing oil from the Strategic Petroleum Reserve and pledges to Brazil that we’ll be customers for their offshore oil when it comes on line – all implying that, yes, supply matters.

Here’s one thing that’s absolutely clear. America’s oil and natural gas companies have a positive, pro-development, pro-jobs strategy to produce more energy right here at home. They believe America has energy options, not unending limitations, and they’re ready to accept the challenge of producing more oil and gas. API President and CEO Jack Gerard during a conference call with reporters this week:

“Despite what you may hear, we are an energy-rich nation, the world’s third-largest producer of oil. We have vast resources that we have not even begun to explore. And by safely developing our own resources of oil and natural gas, we can send a strong signal to the markets that America will control its energy future.”    

Here’s what Gerard is talking about:

Changing policies that are limiting offshore energy development to less than 15 percent of available federal areas.Returning the Gulf of Mexico to pre-2010 production levels.Reversing the downward trend of leasing and permitting on federal lands (so that public areas can match production on state and private lands in places like North Dakota and Pennsylvania).Approving the full Keystone XL pipeline, to bring upwards of 800,000 barrels per day of Canadian oil sands crude to U.S. refiners.Curb government’s enthusiasm for new regulatory layers on the development of the country’s ample shale resources.Shelving punitive proposals to raise taxes on a few oil and natural gas companies.

Each of the above would acknowledge what the government’s own data shows, that oil and natural gas are mainstays of this country’s energy present and future – rejecting an off-oil strategy that’s rooted in unreality.

Gerard:

“Sending a clear message to people who buy and sell crude oil that the United States is committed to reasserting itself as one of the world’s major oil producers would immediately put downward pressure on gasoline and other fuel prices.”

Gerard called out the administration on its energy claims:

“The administration says it’s already doing a good enough job promoting oil and natural gas development. Check the numbers, it says. We did, and they show oil and natural gas production on federal lands and waters has lagged behind development on private and state lands.”

And issued a challenge:

“Our industry would not be urging the administration to open the door to more development unless it was prepared to walk through that door, unless it envisioned investing its own capital in more projects that could produce more supply and jobs, just like the development that’s already occurring. … We once again urge the administration to act to promote more domestic resources of oil and natural gas. … If the administration will do these things, our companies will produce more American oil and gas.”

Additional resource: Talking energy with Fox News.

View the original article here

Throwing Down An Energy Challenge

Let’s talk about a fundamental difference of opinion on the key energy issue of the day.

We say crude oil supply matters – in the context of global-market pricing, which affects fuel prices because the cost of crude accounts for 76 percent of what Americans are paying at the pump. More supply alters the energy equation, exerting downward pressure on crude prices. Energy Economics 101.

The president seems to disagree, saying there’s no “silver bullet,” while suggesting there’s not much that can be done to affect global markets and offer hope to beleaguered consumers. At the same time he tacitly acknowledges market forces work – but only from the side of the equation that reduces demand through efficiency and other measures.

We’re all for greater efficiency, but the president is ignoring the effect on markets of increasing demand. Or is he, because even as he scoffs at the notion of greater development of domestic oil and natural gas resources, there are conversations with the Saudis about increasing their production, talk of releasing oil from the Strategic Petroleum Reserve and pledges to Brazil that we’ll be customers for their offshore oil when it comes on line – all implying that, yes, supply matters.

Here’s one thing that’s absolutely clear. America’s oil and natural gas companies have a positive, pro-development, pro-jobs strategy to produce more energy right here at home. They believe America has energy options, not unending limitations, and they’re ready to accept the challenge of producing more oil and gas. API President and CEO Jack Gerard during a conference call with reporters this week:

“Despite what you may hear, we are an energy-rich nation, the world’s third-largest producer of oil. We have vast resources that we have not even begun to explore. And by safely developing our own resources of oil and natural gas, we can send a strong signal to the markets that America will control its energy future.”    

Here’s what Gerard is talking about:

Changing policies that are limiting offshore energy development to less than 15 percent of available federal areas.Returning the Gulf of Mexico to pre-2010 production levels.Reversing the downward trend of leasing and permitting on federal lands (so that public areas can match production on state and private lands in places like North Dakota and Pennsylvania).Approving the full Keystone XL pipeline, to bring upwards of 800,000 barrels per day of Canadian oil sands crude to U.S. refiners.Curb government’s enthusiasm for new regulatory layers on the development of the country’s ample shale resources.Shelving punitive proposals to raise taxes on a few oil and natural gas companies.

Each of the above would acknowledge what the government’s own data shows, that oil and natural gas are mainstays of this country’s energy present and future – rejecting an off-oil strategy that’s rooted in unreality.

Gerard:

“Sending a clear message to people who buy and sell crude oil that the United States is committed to reasserting itself as one of the world’s major oil producers would immediately put downward pressure on gasoline and other fuel prices.”

Gerard called out the administration on its energy claims:

“The administration says it’s already doing a good enough job promoting oil and natural gas development. Check the numbers, it says. We did, and they show oil and natural gas production on federal lands and waters has lagged behind development on private and state lands.”

And issued a challenge:

“Our industry would not be urging the administration to open the door to more development unless it was prepared to walk through that door, unless it envisioned investing its own capital in more projects that could produce more supply and jobs, just like the development that’s already occurring. … We once again urge the administration to act to promote more domestic resources of oil and natural gas. … If the administration will do these things, our companies will produce more American oil and gas.”

Additional resource: Talking energy with Fox News.

View the original article here