Hess Offers to Add Elliott Picks After Hedge Fund Scraps Bonus Plan

Hess Corp. said it is prepared to add two of Elliott Management Corp.'s nominees to the energy company's board after the dissident hedge fund scrapped an unorthodox bonus plan.

Elliott, which is seeking seats on Hess's board, earlier Monday ditched a plan to pay bonuses to its nominees if the company's shares outperform competitors.

It is the latest about-face in a hard-fought proxy battle for five seats on the 14-member board of Hess, an international energy company whose stock performance has sagged in recent years. The move comes after New York-based Hess said Friday that Chief Executive John Hess would give up his chairmanship and the company would appoint an independent chairman, a reversal of its previous position. The proxy contest will come to an end at its annual shareholders meeting in Houston on Thursday.

Hess, in a statement, said it is prepared to add two Elliott nominees that the energy company would choose if all five of Hess' nominees are elected.

Elliott, which owns about 4.5% of Hess's shares, is seeking new directors because it says the current board has allowed management to destroy shareholder value. Hess has said it is in the midst of a successful transition to becoming a more profitable and focused company, and that Elliott's bid would derail that progress.

Hess aimed much of its criticism at an unusual arrangement in which Elliott's nominees, if elected, would receive bonuses from the hedge fund based on how the company's shares performed against peers. The hedge fund would pay those directors $30,000 for every percentage point the company's stock outperformed a group of peers over three years, up to $9 million. Hess has said the plan compromises the nominees' independence while rewarding strategies to boost its stock in the short term.

The hedge fund's nominees said Monday they had amended their contracts to waive their right to the bonus payments, calling the pay plan a "distraction" but maintaining it was appropriate. The only payment they will receive from Elliott is the $50,000 they were paid when nominated in late January.

Elliott said it supported its nominees' decision. "The shareholder nominees have taken this distraction off the table," a spokesman said.

John Mullin, currently Hess's lead independent director, said in a statement Monday that Elliott's shift on the pay plan "makes it clear that shareholders agree that Elliott's scheme was unacceptable, and exposed Elliott's campaign for what it is, short termism at the expense of all shareholders."

Elliott's plan to pay its nominees for the company's stock performance had drawn criticism--even from some who had endorsed them. Proxy adviser Glass Lewis, for instance, recommended its clients vote for Elliott's nominees but expressed a concern that paying them differently than current directors could create discord on the board.

Relational Investors LLC, which owns about 3% of Hess's shares, has described concerns about the bonuses as overblown.

David Batchelder, a principal at Relational, said in an interview last week that the pay program wouldn't encourage Elliott's nominees to take action at the expense of long-term gains.

"Every day, a stock trades on a multiple of future cash flow," Mr. Batchelder said. "Every day it trades on its long-term value."

Copyright (c) 2013 Dow Jones & Company, Inc.

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New System Offers Holistic Approach to Frack Water Treatment

A wastewater treatment process long utilized in the food industry now is available to treat flowback and produced water from hydraulic fracturing.

Established in 2002, Alpharetta, Georgia-based Ecologix Environmental Systems has provided wastewater treatment services to companies such as Tyson, Kellogg's and Toyota as well as mining and metal plating industries.

The company has reached agreements to ship its wastewater treatment management system to oil and gas customers in Canada and Texas. These units are the third generation of systems geared towards the oil and gas industry – the company previously had sent protoypes into the field in Oklahoma and Texas' Permian basin to learn the lessons of what and what not to do. These lessons include everything from how to maximize unit performance, improve manufacturing and make the units more user-friendly in terms of maintenance and ground operations.

The company also sold a prototype unit to Halliburton Co. that reduced the turbidity level from 530 nephelometric turbidity unit (NTU) to just 3 NTU, a 176 fold improvement in water clarity.

When Ecologix CEO Eli Gruber looked at the oil and gas industry, he saw nothing had been done to address wastewater treatment in a way that made sense to him. Various companies had rushed in with black box ideas, but Gruber still saw a need for a water solution to correct the whole spectrum of contaminants.

"Other companies who rushed in do one thing well, but they ignore five other things," Gruber told Rigzone in a recent interview. "We attempt to take care of every step along the way to  both clean and disinfected the water."

Ecologix Environmental Systems' flagship ITS-900 units for frac water recycling. Each system can process up to 31,000 barrels per day of flowback or produced water.

Ecologix's Integrated Treatment System (ITS) for hydraulic fracturing water treatment allows water to be treated near the well pad, allowing the storage and transportation costs of produced and flowback water to be eliminated.  The ITS also eliminates the need for fresh water withdrawal, shortens hauling distances and reduces truck traffic and creates reusable water from waste, eliminating need for water disposal.

The platform uses a basic wastewater treatment process, Dissolved Air Floatation (DAF), which uses targeted chemicals to precipitate oils and solids out of suspension and a physical mechanism to remove these solids from the water.  In the DAF process, millions of tiny air bubbles force total dissolved solids and fats oil and grease to flow to the surface, where they can be skimmed away. Through this process, over 99 percent of the sludge can be removed.

The ITS-900 consists of three main units:

to control chemical dosingto mix the chemicals into the waterto perform the physical separation of solids

The ITS process is flexible, and can be adapted to meet the specific needs of the formation and driller preferences.

The ITS platform is available in two sizes: one that can process 900 gallons per minute, or 31,000 barrels per day, and a fourth generation ITS that can process 500 gallons per minute, or 17,000 barrels per day. The fourth generation ITS has a lower processing rate, but it has a smaller footprint that combines equipment from two trailers into one. The company will limit production of the units to the smaller unit, noting that customers can always choose to utilize two ITS-500 units, if the volume of water justifies it, Gruber noted.

"However, the 17,000 barrels per day unit seems to be within the industry's sweet spot for most fracking operations," Gruber noted.

EcoLogix's Integrated Treatment System offers a holistic approach to wastewater treatment for the oil and gas industry.

The oil and gas industry's increased use of hydraulic fracturing to explore for and produce unconventional oil and gas has made the treatment of produced and flowback water a top concern for the oil and gas industry, environmentalists and the government. 

Between one and five million gallons of water are used in the hydraulic fracturing of one well. The high volume of water used in this process has raised concerns about water resources used in agriculture or drinking water being diverted towards hydraulic fracturing instead, particularly in areas that have or are experiencing drought conditions. The impact on drinking water supplies due in part to the disposal of flowback and produced water, which could contain organic chemicals, metals, salts and naturally occurring radionuclides, is another issue.

To deal with wastewater, oil and gas operators have either injected wastewater into disposal wells or hauled water away by truck. However, some studies have indicated that injecting hydraulic fracturing wastewater injection into disposal wells can trigger earthquakes. A recent study tied a series of earthquakes in central Oklahoma to the injection of wastewater deep underground. Additionally, high salt levels in water can reduce the number and types of organisms found at a site, impacting the entire ecosystem, according to a recent study Australian and European researchers. 

The heavy traffic of trucks hauling wastewater and other materials related to shale exploration and production has resulted in wear and tear on roads around the country. Almost 1,200 loaded trucks are needed to bring one gas well into production, over 350 are required each year for maintaining a gas well, and nearly 1,000 are needed every five years to refracture a well, according to the March 2013 Eagle Ford Shale Task Report. In many places, the existing roads are not equipped to handle the weight and volume of this traffic.

Gruber sees his company's technology as a way to keep both environmentalists and the oil and gas industry happy.

"What appears to be clean may not be clean," Gruber commented, noting that the oil and gas industry's previous attempts to clean water fell short.

By using a short-cut approach, only 20 percent of suspended solids are removed from water, and without a chemical solution, only larger suspended solids will be removed, leaving small suspended particles behind. These smaller  suspended solids, called colloidal, have very large surface area that add friction to the gelling agents and friction reducers, negatively affecting the viscosity of the fluid from carrying the  proppant sand further distances in the water and keep the hydraulic fractures open, impacting the efficacy of a frack job.

Arguments have been made by some in the oil and gas industry that salt must be completely removed from the water to make it suitable for reuse in hydraulic fracturing, Gruber stated that this is simply not the case.

Gruber cited a recent study conducted by Halliburton and XTO Energy and that the level of salt in water does not impact the quality of a hydraulic fracturing job as long as the total suspended solids have been removed. This finding means that oil and gas companies do not have to remove water from aquifers, meaning this water can be saved for agriculture or other purposes.

In the study, Halliburton and XTO found that produced water with total dissolved solids levels as higher 285,000 milligrams per liter, or 28.5 percent salinity, was shown to generate proper cross-linked rheology for hydraulic fracturing in line with wells that were fracturing with just 20,000 particles per million, or 2 percent salinity.

The study results, which were published by the Society of Petroleum Engineers earlier this year, came from a test of seven wells in New Mexico's Delaware Basin. In the field study, a mixture of common drilling chemicals, such as Cacrboxymethyl Hydroxypropyl Guar Gum, a zirconium-based cross linker, sodium chlorite breakers and non-emulsified surfactants were blended with 100 percent treated produced water to generate a frac fluid that performed as well as that expected from a fluid based on fresh water.  

"The study shows that brine water possesses all the characteristics required for effective fracking: easy preparation, rapid hydration, low fluid loss, good proppant transport capacity, low pipe friction, and effective recovery from the reservoir," said Gruber in a recent white paper in regards to the Halliburton-XTO study. "Unlike fresh water, salt water does not restrict oil flow because of an osmotic imbalance that results in clay swelling."

That study also indicated that by using produced water for hydraulic fracturing can help reduce approximately 1,400 truckloads from the roads, and all but eliminate the use of disposal wells. The study delivered $70,000 to $100,000 cost savings per well.

"Removing the suspended solids is the key," Gruber commented. "If you take shortcuts, you compromise the quality of the hydraulic fracturing job."

For this reason, 100 percent brine water can be used for hydraulic fracturing, so long as the suspended solids are removed completely.

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.

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CEA Offers Remarks Ahead of Lease Sale Hearings

This week, Consumer Energy Alliance (CEA) will participate at public hearings in Tallahassee and Panama City Beach hosted by the federal Bureau of Ocean Energy Management (BOEM), which is a division within the U.S. Department of the Interior. BOEM has completed a draft environmental impact statement for two proposed oil and gas lease sales in the Gulf of Mexico's Eastern Planning Area and is seeking public comment on the document.

Lease Sales 225 and 226, scheduled for 2014 and 2016, are part of the Outer Continental Shelf Oil and Gas Leasing Program:2012-2017 (Five Year Program). The Five Year Program makes all areas with the highest-known resource potential available for oil and gas leasing in order to further reduce America's dependence on overseas oil.

BOEM is holding public hearings to solicit comments on the environmental impact statement from interested citizens and organizations. Comments will be used to prepare the final environmental impact statement for these proposed Eastern Planning Area oil and gas lease sales. Three hearings will be held: on Tuesday, March 26, in Tallahassee at 1:00 p.m. EST at the Hilton Garden Inn, 1330 Blairstone Road; and on Wednesday, March 27, in Panama City Beach at 1:00 p.m. CST and again at 6:00 p.m. CST at the Wyndham Bay Point Resort, 4114 Jan Cooley Drive.

Consumer Energy Alliance-Florida Executive Director Kevin Doyle prepared the following comments for the Tallahassee and Panama City Beach public hearings:

"As an advocate for consumers, CEA supports offshore energy exploration and production in the eastern planning areas of the Gulf of Mexico. While CEA encourages the development of renewable energy resources, we believe that continued and expanded oil and gas exploration and production is vital to maintaining a reliable energy supply for consumers, reducing our dependence on oil imports, and growing the economy. Utilizing all available domestic oil and gas resources will bring energy prices down for all American consumers and businesses – allowing them to save money, grow their businesses, and create jobs. "

In addition to creating jobs, offshore oil and gas development provides substantial government revenue through an expanded tax base and royalty payments. In 2009, offshore oil and gas activity in the Gulf of Mexico generated almost $70 billion of economic value and nearly 400,000 jobs. That same year, the industry provided about $20 billion in revenues to federal, state and local governments through royalties, bonuses and tax collections. According to Wood Mackenzie, oil and natural gas development in the Eastern Gulf of Mexico could create 100,000 new jobs in Florida alone.

In 2012, the United States consumed 18.5 million barrels of petroleum products a day, making the U.S. one of the world’s largest petroleum consumers. The United States consumes more energy from petroleum than from any other energy source. Future Eastern Gulf of Mexico energy exploration and production could add significant domestic supplies to help offset the need for overseas imports. It is important that we allow access now because it will years to explore and develop the energy before it can be delivered to consumers.

The Environmental Impact Statement concludes that any environmental impact from offshore oil and gas development in these proposed areas would be minimal if all existing regulatory requirements are met. In the draft EIS, the BOEM examines the potential impact to water quality, air quality, wetlands, marine life, and coastal barriers, among other areas, and each time concludes that given the type and level of activity anticipated, the local environment will not be adversely affected. The draft EIS notes that myriad advancements in technology, practice and regulation following the 2010 Deepwater Horizon spill will further minimize the potential impact of offshore oil and gas development.

Consumer Energy Alliance encourages the Bureau of Ocean Energy Management to proceed in a way that allows for the greatest economic benefit to American energy consumers. This means significant access to the eastern planning areas of the Gulf of Mexico for safe and responsible energy exploration and production. Thank you again for allowing us to be here today.

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

CEA Offers Remarks Ahead of Lease Sale Hearings

This week, Consumer Energy Alliance (CEA) will participate at public hearings in Tallahassee and Panama City Beach hosted by the federal Bureau of Ocean Energy Management (BOEM), which is a division within the U.S. Department of the Interior. BOEM has completed a draft environmental impact statement for two proposed oil and gas lease sales in the Gulf of Mexico's Eastern Planning Area and is seeking public comment on the document.

Lease Sales 225 and 226, scheduled for 2014 and 2016, are part of the Outer Continental Shelf Oil and Gas Leasing Program:2012-2017 (Five Year Program). The Five Year Program makes all areas with the highest-known resource potential available for oil and gas leasing in order to further reduce America's dependence on overseas oil.

BOEM is holding public hearings to solicit comments on the environmental impact statement from interested citizens and organizations. Comments will be used to prepare the final environmental impact statement for these proposed Eastern Planning Area oil and gas lease sales. Three hearings will be held: on Tuesday, March 26, in Tallahassee at 1:00 p.m. EST at the Hilton Garden Inn, 1330 Blairstone Road; and on Wednesday, March 27, in Panama City Beach at 1:00 p.m. CST and again at 6:00 p.m. CST at the Wyndham Bay Point Resort, 4114 Jan Cooley Drive.

Consumer Energy Alliance-Florida Executive Director Kevin Doyle prepared the following comments for the Tallahassee and Panama City Beach public hearings:

"As an advocate for consumers, CEA supports offshore energy exploration and production in the eastern planning areas of the Gulf of Mexico. While CEA encourages the development of renewable energy resources, we believe that continued and expanded oil and gas exploration and production is vital to maintaining a reliable energy supply for consumers, reducing our dependence on oil imports, and growing the economy. Utilizing all available domestic oil and gas resources will bring energy prices down for all American consumers and businesses – allowing them to save money, grow their businesses, and create jobs. "

In addition to creating jobs, offshore oil and gas development provides substantial government revenue through an expanded tax base and royalty payments. In 2009, offshore oil and gas activity in the Gulf of Mexico generated almost $70 billion of economic value and nearly 400,000 jobs. That same year, the industry provided about $20 billion in revenues to federal, state and local governments through royalties, bonuses and tax collections. According to Wood Mackenzie, oil and natural gas development in the Eastern Gulf of Mexico could create 100,000 new jobs in Florida alone.

In 2012, the United States consumed 18.5 million barrels of petroleum products a day, making the U.S. one of the world’s largest petroleum consumers. The United States consumes more energy from petroleum than from any other energy source. Future Eastern Gulf of Mexico energy exploration and production could add significant domestic supplies to help offset the need for overseas imports. It is important that we allow access now because it will years to explore and develop the energy before it can be delivered to consumers.

The Environmental Impact Statement concludes that any environmental impact from offshore oil and gas development in these proposed areas would be minimal if all existing regulatory requirements are met. In the draft EIS, the BOEM examines the potential impact to water quality, air quality, wetlands, marine life, and coastal barriers, among other areas, and each time concludes that given the type and level of activity anticipated, the local environment will not be adversely affected. The draft EIS notes that myriad advancements in technology, practice and regulation following the 2010 Deepwater Horizon spill will further minimize the potential impact of offshore oil and gas development.

Consumer Energy Alliance encourages the Bureau of Ocean Energy Management to proceed in a way that allows for the greatest economic benefit to American energy consumers. This means significant access to the eastern planning areas of the Gulf of Mexico for safe and responsible energy exploration and production. Thank you again for allowing us to be here today.

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

CEO Group Offers Recommendations for US Energy Policy

A group of U.S. chief executive officers (CEOs) are offering in a new report their recommendations on what a comprehensive U.S. energy policy framework should look like.

The CEOs of the Business Roundtable released a report Monday, "Taking Action on Energy", providing greater detail about the policies needed to make affordable, reliable energy a reality for U.S. consumers and businesses.

The new report is a follow up to the group's March 2012 "Taking Action for America" report. In the previous report, the Business Roundtable identified reliable, affordable energy as a critical strategy to revitalize economic growth and job creation.

"Taking Action on Energy" is an attempt to outline an energy policy framework that is both timely and durable. While many of the policy solutions in the report focus on major issues of the day, the group also attempts to place them within a broader system of national energy policy goals, principles and strategies.

"We believe that the framework outlined in this paper represents a balanced approach to enhancing economic growth and energy security while also reducing the environmental risks associated with criteria pollutants, greenhouse gases and other emissions," said David M. Cote, chairman and CEO of Honeywell International and chairman of the Business Roundtable's Energy and Environment Committee, in a statement.

To support this effort, the organization's Energy and Environment Committee is re-evaluating U.S. energy policy and forging a long-term framework that has the potential to simultaneously advance the nation's economic, security and environmental interests.

The group's initial assessment has found the United States' energy future to be exceptionally bright, Cote noted.

"The nation's energy outlook has improved substantially in recent years due to a confluence of factors that are fundamentally reshaping the U.S. energy landscape, including the development of technologies to unlock vast new domestic oil and natural gas resources and the application of innovative technologies to economically extract and deliver these resources to market," Cote commented. "In addition, the United States remains a global leader in the research, development and commercialization of energy efficiency, renewable energy, new nuclear and advanced coal technologies."

While the shale oil and gas revolution offers a textbook example of the private sector's ability to drive innovation and capitalize on new opportunities, Cote noted that the business community cannot lead the way along if the United States is to sustain its energy renaissance and restore its status as an energy superpower.

The Business Roundtable believes the United States should capitalize on these advantages and accelerate efforts to develop a portfolio of diverse, affordable and efficient options for meeting the nation's 21st century energy needs, Cote commented.

"Despite our optimism, we remain realistic about the difficulty of replacing our ad hoc energy policy with a more purposeful approach," Cote noted. "Making this change will require leaders to engage in an open and honest dialogue about our values and priorities as a nation, as well as the policy and regulatory approaches most likely to achieve them. This report is intended to contribute to that dialogue."

Boosting economic growth, enhancing energy security and promoting environmental stewardship are the three overarching goals the group has identified for a long-term national energy policy. To advance these goals, U.S. policies and regulations should be aligned with the principles of:

Fostering innovationEncouraging competition and energy resource diversityEmpower consumersEngage internationallyEnsure smarter regulationsFortify critical infrastructure

Noting that the United States will continue to rely heavily on traditional energy resources such as oil and gas to fuel future economic growth, the group recommended policies to enhance oil and natural gas production, including greater access to onshore and offshore federal lands, including promising areas such as the eastern Gulf, Atlantic and Pacific coasts and Alaska to ensure reliable oil, gas and coal in the coming decades.

The Business Roundtable also called for a streamlined permitting process to substantially lower the anticipated and unanticipated costs of investing in, producing, processing and transporting energy resources while continue to ensure public health, safety and environmental quality. The group also called on the executive branch to avoid regulations that duplicate or conflict with state regulations.

"Any proposal to promulgate new or expanded federal regulations should be weighed against the fact that the states traditionally have had the preeminent role in regulating oil and natural gas activity on non-federal lands," according to the report.

New federal regulation of oil and gas activities on federal lands should be developed in consultation with states and be consistent with state regulations.

Additionally, they called for the "expeditious approval" of infrastructure projects such as the Keystone XL pipeline and other privately funded infrastructure projects.

Regulations by the U.S. Environmental Protection Agency should be based on sound science, undergo thorough net cost-benefit analysis, and take into consideration the net cumulative impact of these regulations on energy costs, economic growth and job creation while protecting the environment and human health, the group noted in the report.

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

CEO Group Offers Recommendations for US Energy Policy

A group of U.S. chief executive officers (CEOs) are offering in a new report their recommendations on what a comprehensive U.S. energy policy framework should look like.

The CEOs of the Business Roundtable released a report Monday, "Taking Action on Energy", providing greater detail about the policies needed to make affordable, reliable energy a reality for U.S. consumers and businesses.

The new report is a follow up to the group's March 2012 "Taking Action for America" report. In the previous report, the Business Roundtable identified reliable, affordable energy as a critical strategy to revitalize economic growth and job creation.

"Taking Action on Energy" is an attempt to outline an energy policy framework that is both timely and durable. While many of the policy solutions in the report focus on major issues of the day, the group also attempts to place them within a broader system of national energy policy goals, principles and strategies.

"We believe that the framework outlined in this paper represents a balanced approach to enhancing economic growth and energy security while also reducing the environmental risks associated with criteria pollutants, greenhouse gases and other emissions," said David M. Cote, chairman and CEO of Honeywell International and chairman of the Business Roundtable's Energy and Environment Committee, in a statement.

To support this effort, the organization's Energy and Environment Committee is re-evaluating U.S. energy policy and forging a long-term framework that has the potential to simultaneously advance the nation's economic, security and environmental interests.

The group's initial assessment has found the United States' energy future to be exceptionally bright, Cote noted.

"The nation's energy outlook has improved substantially in recent years due to a confluence of factors that are fundamentally reshaping the U.S. energy landscape, including the development of technologies to unlock vast new domestic oil and natural gas resources and the application of innovative technologies to economically extract and deliver these resources to market," Cote commented. "In addition, the United States remains a global leader in the research, development and commercialization of energy efficiency, renewable energy, new nuclear and advanced coal technologies."

While the shale oil and gas revolution offers a textbook example of the private sector's ability to drive innovation and capitalize on new opportunities, Cote noted that the business community cannot lead the way along if the United States is to sustain its energy renaissance and restore its status as an energy superpower.

The Business Roundtable believes the United States should capitalize on these advantages and accelerate efforts to develop a portfolio of diverse, affordable and efficient options for meeting the nation's 21st century energy needs, Cote commented.

"Despite our optimism, we remain realistic about the difficulty of replacing our ad hoc energy policy with a more purposeful approach," Cote noted. "Making this change will require leaders to engage in an open and honest dialogue about our values and priorities as a nation, as well as the policy and regulatory approaches most likely to achieve them. This report is intended to contribute to that dialogue."

Boosting economic growth, enhancing energy security and promoting environmental stewardship are the three overarching goals the group has identified for a long-term national energy policy. To advance these goals, U.S. policies and regulations should be aligned with the principles of:

Fostering innovationEncouraging competition and energy resource diversityEmpower consumersEngage internationallyEnsure smarter regulationsFortify critical infrastructure

Noting that the United States will continue to rely heavily on traditional energy resources such as oil and gas to fuel future economic growth, the group recommended policies to enhance oil and natural gas production, including greater access to onshore and offshore federal lands, including promising areas such as the eastern Gulf, Atlantic and Pacific coasts and Alaska to ensure reliable oil, gas and coal in the coming decades.

The Business Roundtable also called for a streamlined permitting process to substantially lower the anticipated and unanticipated costs of investing in, producing, processing and transporting energy resources while continue to ensure public health, safety and environmental quality. The group also called on the executive branch to avoid regulations that duplicate or conflict with state regulations.

"Any proposal to promulgate new or expanded federal regulations should be weighed against the fact that the states traditionally have had the preeminent role in regulating oil and natural gas activity on non-federal lands," according to the report.

New federal regulation of oil and gas activities on federal lands should be developed in consultation with states and be consistent with state regulations.

Additionally, they called for the "expeditious approval" of infrastructure projects such as the Keystone XL pipeline and other privately funded infrastructure projects.

Regulations by the U.S. Environmental Protection Agency should be based on sound science, undergo thorough net cost-benefit analysis, and take into consideration the net cumulative impact of these regulations on energy costs, economic growth and job creation while protecting the environment and human health, the group noted in the report.

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

Murkowski Report Offers 'Blueprint' for Future Energy Policymaking

U.S. Sen. Lisa Murkowski (R-Alaska) unveiled a report Monday offering a blueprint for the conversation about where energy and natural resource policies should go over the next few years.

In the report, Energy 20/20, A Vision for America's Energy Future, Murkowski offers recommendations on how to align federal energy policy with what Murkowski sees as a consensus that the United States should make energy abundant, affordable, clean, diverse and secure. These recommendations not only include oil and gas, but renewable resources as well.

Among these recommendations is for the United States to establish a national goal to produce enough additional oil, biofuels and synthetic fuels to become independent by 2020 of imports from the Organization of the Petroleum Exporting Countries (OPEC).

"The fulfillment of this commitment would support the creation of millions of well-paying jobs, increased federal revenues, reduction of U.S. budget and trade deficits, and help maintain affordable world energy prices," Murkowski noted.

The federal government can help achieve energy independence from OPEC by 2020 by:

Expediting federal permitting and reviewing decisions for energyNatural resources and related infrastructure projectsAllowing construction of the Keystone XL pipeline to move forwardRequiring the U.S. Department of the Interior outline plans for development of Outer Continental Shelf (OCS) resources to more accurately estimate available resources and set minimum production targets, taking into account necessary environmental requirements

"Although these targets would be set administratively, they should be achievable and binding," Murkowski commented in the report. "If and when actual production is projected to fall short of such targets, additional leasing, onshore or offshore, should be made available to compensate for the shortfall."

Murkowski also called for an expansion of OCS leasing to the eastern Gulf of Mexico and offshore Virginia, North Carolina, South Carolina and Georgia. Additionally, legislation should be passed for a consolidated offshore regulator, with a reaffirmed and strengthened statutory authority to develop offshore resources expeditiously through a certain and fair permitting process, while incentivizing safety and best environmental practices.

Additional amendments Murkowski calls for in the report concerning future oil and gas development include directing a share of revenues to participating offshore energy producing states – including offshore wind, tidal and wave generation – and establishing permanent revenue sharing for offshore development from leasing, bonus bids, rents, and royalty receipts at 27.5 percent with provision for direct partial payments to affected coastal communities.

The senator also called for the administration and its departments and agencies to reform the methods and processes through which energy policy is implemented and administered. This includes identifying impediments to federal oil and gas leasing and production. Specifically, the U.S. Department of the Interior must establish a review program and an accelerated auction schedule for previously and consistently nominated lease parcels that have yet to be put up for sale.

The National Petroleum Reserve-Alaska also must be immediately placed into full availability for oil and gas leasing, consistent with statutory designation.

"The reserve must be thoughtfully developed with roads, bridges and pipeline facilities that promote broad onshore development of the diffuse resource base, while simultaneously accommodating the transportation of oil and gas from offshore fields in the Chukchi Sea to the TransAlaska Pipeline System," Murkowski noted.

Murkowski also said that the benefits of the U.S. shale boom, and the jobs, higher wages and increased federal, state and local government tax revenues, should not be put at risk under a new federal regime for hydraulic fracturing that only makes it harder or impossible to produce U.S. shale resources.

"Particularly given the federal deficit, agencies should focus on directing limited resources where they are most needed and warranted, not where states are already effectively regulating and policing their activities," Murkowski commented.

New technology and studies continue to indicate that North America has a vast hydrocarbon base, with potential to substantially affect supply in world markets. Last year, the U.S. Energy Information Administration reported the United States to have 220.2 billion barrels of technically recoverable oil, or more than a century's worth of projected imports from the Organization of the Petroleum Exporting Countries. This figure does not include vast unconventional oil resources that will become commercially viable in the future.

"Abundant energy is possible, and there are already many signs of it becoming a reality as technological breakthroughs have lowered the cost of producing previously uneconomic supplies," Murkowski noted, adding that affordable energy is vital to U.S.
economic well-being, and a prudent balancing of energy production with proper standards for environmental regulation is more pressing than ever.

While the trend for oil production on state and private lands are quite positive – with approximately 96 percent of domestic oil production growth due to growth on state and private land – oil production on federal lands remained largely flat from 2003 through 2011, and sales of natural gas from federal lands fell by 31 percent. Of equal concern, the number of permits issued for onshore and offshore production on federal lands – a key indicator of future production – has also dropped significantly since the preceding administration.

"Our nation is too often hamstrung by burdensome regulations, delayed permits, and overzealous litigation," Murkowski commented. "This can render projects uneconomic by attrition and prevent timely, efficient and urgently needed investments in energy supply and conservation."

Murkowski noted that President Obama and the new Congress should work together to renew energy and natural resource policies through "discrete bills" and targeted oversight that proceed from a shared understanding of the facts.

"The ongoing boom in American oil and gas production must be fundamental to our national energy policy," Murkowski commented. "We no longer should view energy policy from a perspective of scarcity, but rather, from a perspective of increasing abundance. With the right policies, abundant and affordable energy is achievable."

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

Murkowski Report Offers 'Blueprint' for Future Energy Policymaking

U.S. Sen. Lisa Murkowski (R-Alaska) unveiled a report Monday offering a blueprint for the conversation about where energy and natural resource policies should go over the next few years.

In the report, Energy 20/20, A Vision for America's Energy Future, Murkowski offers recommendations on how to align federal energy policy with what Murkowski sees as a consensus that the United States should make energy abundant, affordable, clean, diverse and secure. These recommendations not only include oil and gas, but renewable resources as well.

Among these recommendations is for the United States to establish a national goal to produce enough additional oil, biofuels and synthetic fuels to become independent by 2020 of imports from the Organization of the Petroleum Exporting Countries (OPEC).

"The fulfillment of this commitment would support the creation of millions of well-paying jobs, increased federal revenues, reduction of U.S. budget and trade deficits, and help maintain affordable world energy prices," Murkowski noted.

The federal government can help achieve energy independence from OPEC by 2020 by:

Expediting federal permitting and reviewing decisions for energyNatural resources and related infrastructure projectsAllowing construction of the Keystone XL pipeline to move forwardRequiring the U.S. Department of the Interior outline plans for development of Outer Continental Shelf (OCS) resources to more accurately estimate available resources and set minimum production targets, taking into account necessary environmental requirements

"Although these targets would be set administratively, they should be achievable and binding," Murkowski commented in the report. "If and when actual production is projected to fall short of such targets, additional leasing, onshore or offshore, should be made available to compensate for the shortfall."

Murkowski also called for an expansion of OCS leasing to the eastern Gulf of Mexico and offshore Virginia, North Carolina, South Carolina and Georgia. Additionally, legislation should be passed for a consolidated offshore regulator, with a reaffirmed and strengthened statutory authority to develop offshore resources expeditiously through a certain and fair permitting process, while incentivizing safety and best environmental practices.

Additional amendments Murkowski calls for in the report concerning future oil and gas development include directing a share of revenues to participating offshore energy producing states – including offshore wind, tidal and wave generation – and establishing permanent revenue sharing for offshore development from leasing, bonus bids, rents, and royalty receipts at 27.5 percent with provision for direct partial payments to affected coastal communities.

The senator also called for the administration and its departments and agencies to reform the methods and processes through which energy policy is implemented and administered. This includes identifying impediments to federal oil and gas leasing and production. Specifically, the U.S. Department of the Interior must establish a review program and an accelerated auction schedule for previously and consistently nominated lease parcels that have yet to be put up for sale.

The National Petroleum Reserve-Alaska also must be immediately placed into full availability for oil and gas leasing, consistent with statutory designation.

"The reserve must be thoughtfully developed with roads, bridges and pipeline facilities that promote broad onshore development of the diffuse resource base, while simultaneously accommodating the transportation of oil and gas from offshore fields in the Chukchi Sea to the TransAlaska Pipeline System," Murkowski noted.

Murkowski also said that the benefits of the U.S. shale boom, and the jobs, higher wages and increased federal, state and local government tax revenues, should not be put at risk under a new federal regime for hydraulic fracturing that only makes it harder or impossible to produce U.S. shale resources.

"Particularly given the federal deficit, agencies should focus on directing limited resources where they are most needed and warranted, not where states are already effectively regulating and policing their activities," Murkowski commented.

New technology and studies continue to indicate that North America has a vast hydrocarbon base, with potential to substantially affect supply in world markets. Last year, the U.S. Energy Information Administration reported the United States to have 220.2 billion barrels of technically recoverable oil, or more than a century's worth of projected imports from the Organization of the Petroleum Exporting Countries. This figure does not include vast unconventional oil resources that will become commercially viable in the future.

"Abundant energy is possible, and there are already many signs of it becoming a reality as technological breakthroughs have lowered the cost of producing previously uneconomic supplies," Murkowski noted, adding that affordable energy is vital to U.S.
economic well-being, and a prudent balancing of energy production with proper standards for environmental regulation is more pressing than ever.

While the trend for oil production on state and private lands are quite positive – with approximately 96 percent of domestic oil production growth due to growth on state and private land – oil production on federal lands remained largely flat from 2003 through 2011, and sales of natural gas from federal lands fell by 31 percent. Of equal concern, the number of permits issued for onshore and offshore production on federal lands – a key indicator of future production – has also dropped significantly since the preceding administration.

"Our nation is too often hamstrung by burdensome regulations, delayed permits, and overzealous litigation," Murkowski commented. "This can render projects uneconomic by attrition and prevent timely, efficient and urgently needed investments in energy supply and conservation."

Murkowski noted that President Obama and the new Congress should work together to renew energy and natural resource policies through "discrete bills" and targeted oversight that proceed from a shared understanding of the facts.

"The ongoing boom in American oil and gas production must be fundamental to our national energy policy," Murkowski commented. "We no longer should view energy policy from a perspective of scarcity, but rather, from a perspective of increasing abundance. With the right policies, abundant and affordable energy is achievable."

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.

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Murkowski Report Offers 'Blueprint' for Future Energy Policymaking

U.S. Sen. Lisa Murkowski (R-Alaska) unveiled a report Monday offering a blueprint for the conversation about where energy and natural resource policies should go over the next few years.

In the report, Energy 20/20, A Vision for America's Energy Future, Murkowski offers recommendations on how to align federal energy policy with what Murkowski sees as a consensus that the United States should make energy abundant, affordable, clean, diverse and secure. These recommendations not only include oil and gas, but renewable resources as well.

Among these recommendations is for the United States to establish a national goal to produce enough additional oil, biofuels and synthetic fuels to become independent by 2020 of imports from the Organization of the Petroleum Exporting Countries (OPEC).

"The fulfillment of this commitment would support the creation of millions of well-paying jobs, increased federal revenues, reduction of U.S. budget and trade deficits, and help maintain affordable world energy prices," Murkowski noted.

The federal government can help achieve energy independence from OPEC by 2020 by:

Expediting federal permitting and reviewing decisions for energyNatural resources and related infrastructure projectsAllowing construction of the Keystone XL pipeline to move forwardRequiring the U.S. Department of the Interior outline plans for development of Outer Continental Shelf (OCS) resources to more accurately estimate available resources and set minimum production targets, taking into account necessary environmental requirements

"Although these targets would be set administratively, they should be achievable and binding," Murkowski commented in the report. "If and when actual production is projected to fall short of such targets, additional leasing, onshore or offshore, should be made available to compensate for the shortfall."

Murkowski also called for an expansion of OCS leasing to the eastern Gulf of Mexico and offshore Virginia, North Carolina, South Carolina and Georgia. Additionally, legislation should be passed for a consolidated offshore regulator, with a reaffirmed and strengthened statutory authority to develop offshore resources expeditiously through a certain and fair permitting process, while incentivizing safety and best environmental practices.

Additional amendments Murkowski calls for in the report concerning future oil and gas development include directing a share of revenues to participating offshore energy producing states – including offshore wind, tidal and wave generation – and establishing permanent revenue sharing for offshore development from leasing, bonus bids, rents, and royalty receipts at 27.5 percent with provision for direct partial payments to affected coastal communities.

The senator also called for the administration and its departments and agencies to reform the methods and processes through which energy policy is implemented and administered. This includes identifying impediments to federal oil and gas leasing and production. Specifically, the U.S. Department of the Interior must establish a review program and an accelerated auction schedule for previously and consistently nominated lease parcels that have yet to be put up for sale.

The National Petroleum Reserve-Alaska also must be immediately placed into full availability for oil and gas leasing, consistent with statutory designation.

"The reserve must be thoughtfully developed with roads, bridges and pipeline facilities that promote broad onshore development of the diffuse resource base, while simultaneously accommodating the transportation of oil and gas from offshore fields in the Chukchi Sea to the TransAlaska Pipeline System," Murkowski noted.

Murkowski also said that the benefits of the U.S. shale boom, and the jobs, higher wages and increased federal, state and local government tax revenues, should not be put at risk under a new federal regime for hydraulic fracturing that only makes it harder or impossible to produce U.S. shale resources.

"Particularly given the federal deficit, agencies should focus on directing limited resources where they are most needed and warranted, not where states are already effectively regulating and policing their activities," Murkowski commented.

New technology and studies continue to indicate that North America has a vast hydrocarbon base, with potential to substantially affect supply in world markets. Last year, the U.S. Energy Information Administration reported the United States to have 220.2 billion barrels of technically recoverable oil, or more than a century's worth of projected imports from the Organization of the Petroleum Exporting Countries. This figure does not include vast unconventional oil resources that will become commercially viable in the future.

"Abundant energy is possible, and there are already many signs of it becoming a reality as technological breakthroughs have lowered the cost of producing previously uneconomic supplies," Murkowski noted, adding that affordable energy is vital to U.S.
economic well-being, and a prudent balancing of energy production with proper standards for environmental regulation is more pressing than ever.

While the trend for oil production on state and private lands are quite positive – with approximately 96 percent of domestic oil production growth due to growth on state and private land – oil production on federal lands remained largely flat from 2003 through 2011, and sales of natural gas from federal lands fell by 31 percent. Of equal concern, the number of permits issued for onshore and offshore production on federal lands – a key indicator of future production – has also dropped significantly since the preceding administration.

"Our nation is too often hamstrung by burdensome regulations, delayed permits, and overzealous litigation," Murkowski commented. "This can render projects uneconomic by attrition and prevent timely, efficient and urgently needed investments in energy supply and conservation."

Murkowski noted that President Obama and the new Congress should work together to renew energy and natural resource policies through "discrete bills" and targeted oversight that proceed from a shared understanding of the facts.

"The ongoing boom in American oil and gas production must be fundamental to our national energy policy," Murkowski commented. "We no longer should view energy policy from a perspective of scarcity, but rather, from a perspective of increasing abundance. With the right policies, abundant and affordable energy is achievable."

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

FlexSteel Offers New Larger Diameter Pipe

FlexSteel Pipeline Technologies, manufacturer of the next generation of steel line pipe, announces FlexSteel pipe is now available in 8-inch diameter up to 1,500 psi. The new larger-diameter pipe offers up to 125 percent increased flow rate compared to FlexSteel 6-inch pipe.

The 8-inch diameter FlexSteel was developed with the same helically wound steel core as existing FlexSteel pipe for failure-free performance with the durability of steel and the installation, performance and cost benefits of flexible pipe products.

"The new 8-inch FlexSteel was developed in response to customer requests for a spoolable pipe solution with greater flow capacity," said Brian Anderson, vice president of strategy and marketing for FlexSteel Pipeline Technologies. "The 8-inch product provides all the benefits of our revolutionary spooled pipe to deliver superior lifecycle performance and value." Developed with corrosion-resistant technology, FlexSteel pipe performs under grueling cyclic loading environments and installs up to five times faster than traditional steel line pipe to provide the lowest total cost of ownership compared to steel. Additionally, the 8-inch pipe has 93 percent fewer connections per mile vs. steel.

FlexSteel can be installed easily and quickly in all types of terrain with minimal disruption to land. It does not require special bedding or handling. FlexSteel's time-tested swaged fittings make for fast, reliable connections that are not sensitive to cleanliness or ambient temperature.

FlexSteel spooled pipe is used in various applications including oil and gas, water, carbon dioxide transportation, and others.

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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Berkeley Supply offers American-made goods for guys

Eli P. Cox, 26, opened Berkeley Supply menswear store specializing in American-made goods.

It might be surprising in other cities, but in Denver the idea of a menswear store in the middle of a bicycle shop doesn't seem odd.

Which is why it made perfect sense for Eli Cox to create his own little retail patch sandwiched between Avery County Cycles and Pearl Velo at the corner of Tennyson Street and West 43rd Avenue in northwest Denver's lively Berkeley neighborhood.

Berkeley Supply, which opened earlier this month, specializes in American-made clothing and accessories. Red Wing leather boots, Filson ranch coats, Rogue Territory jeans, Taylor Stitch shirts and TinMan Provisions leather goods are some of the lines the store is selling. The merchandise has a workwear vibe, but feels a little more refined than strictly utilitarian brands like Dickies or Carhartt.

"This is all stuff that I wear and believe in," says Cox, 26. Supporting American companies is one way of rebuilding the economy and creating jobs, he maintains. He's also a stickler for quality and wants the store to be branded as a "purveyor of goods that last."

When he buys a jacket, he says, "I want it to last 40 years."

Cox said he learned retail lessons at Ted's Shoe & Sport in Keene, N.H. , where he grew up. The activewear retailer instilled in him a passion for customer service.

After getting a degree in marketing and advertising at Johnson & Wales in Denver, Cox worked in the restaurant business locally as a waiter and manager, but kept thinking about retail. He wanted to open a store a couple of years ago but couldn't find the right spot.

After talking this fall with his friends who own the bike stores, he decided to carve a retail space out of the 168 square feet they didn't need.

"I love this neighborhood," Cox says of Berkeley. "It's a great combination of old-school businesses and new ones. I live here and work here." In addition to running the store, he works nights nearby at Hops & Pie.

While tiny, the space is carefully merchandised with clothing and accessories and such artwork as snowy scenes of Cox's native New Hampshire. The center table was made by his father, who has an architectural woodworking company, and you can't help notice the very male choice of display pieces: rusted vintage chainsaws.

He didn't use them to cut the wood that's neatly stacked in one corner of the shop, but likes the effect just the same. "It's the real deal," he says.

Suzanne S. Brown: 303-954-1697, sbrown

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