Wildcatter Weekly, October 8, 2009
posted on: Oct 08, 2009
IPAMS Meetings and Announcements
Managing Volatility: How New Government Policies Could Limit Your Ability to Manage Risk
October 15, 2009 at 11:30 a.m.
IPAMS will be hosting a featured discussion on how new government policies could limit your ability to manage risk. The event will be held Thursday, October 15, 2009 from 11:30 a.m. to 1:30 p.m. at the Denver Athletic Club (lunch will be served.)
IPAMS is pleased to announce that Mark Lenczowski, Managing Director and Associate General Counsel, J.P. Morgan Investment Bank, will also be joining this distinguished panel. Mr. Lenczowski advises the Global Commodities Group on regulatory matters, and negotiates and drafts transactional documents for OTC commodity and interest rate derivative transactions. Dr. Vince Kaminiski, Professor Rice University, Jesse H. Jones Graduate School of Management, will lead the discussion on policy changes currently under consideration in Washington, D.C. that could have a profound impact on the energy industry’s ability to manage price volatility risk and stabilize energy costs for consumers.
Please click here to register for this event.
General questions should be directed to IPAMS Event Coordinator, Becca Ness.
IPAMS Presents Author and Industry Pioneer Robert Hefner
October 21, 2009 at 11:30 a.m.
Industry leader and author Robert A. Hefner III will be coming to Denver to discuss topics from his new book, The Grand Energy Transition. If you haven’t heard about this book, clear your calendar and plan on heading to The Westin Tabor Center on Wednesday, October 21st at 11:30 a.m. Lunch will be served.
Hefner, founder and owner of GHK Exploration, a private natural gas company headquartered in Oklahoma City, released this industry sensation in September 2009. A pioneer of ultradeep natural gas exploration and production, Hefner led GHK and the development of innovative technology needed to successfully drill and produce many of the world’s deepest and highest pressure natural gas wells, setting many industry world records along the way, and ultimately leading to the development of vast new domestic natural gas resources.
Each attendee will receive a complimentary copy of Robert A. Hefner’s book The Grand Energy Transition. Click here to read reviews about “The GET” by John Podesta, Ted Turner, Donald Trump and many more…
The online price is $50 for IPAMS Members and $60 for non-members.
Please click here to register for this event.
General questions should be directed to IPAMS Event Coordinator, Becca Ness.
Annual Utah Call-Up
October 20-21, 2009
A fantastic agenda for the Annual IPAMS Utah Call-Up in Salt Lake City is lined up for October 20th and 21st. From the Governor on down, IPAMS has arranged meetings with all agencies and officials important to natural gas and oil exploration and production in Utah. Please register on the IPAMS web site.
IPAMS is holding several rooms at the Little America Hotel, so please contact Becca Ness to make a reservation. For more information, see the Initial Utah Call-Up Agenda or contact Spencer Kimball.
A Call-Up briefing to discuss details of the trip will be held during the Utah Basin Advisors Network (UBAN) regularly scheduled meeting, October 13th at 10:00 a.m. at IPAMS.
DOI Report on 77 Leases in Utah
The Department of the Interior released a report with a decision from a BLM multi-disciplinary team tasked with reviewing 77 leases from the December 2008 Utah lease sale. DOI failed to reinstate a single lease, and went so far as to withdraw 8 parcels completely from oil and gas leasing. A very small number of leases, 17, will be reoffered in future lease sales, but Interior Secretary Ken Salazar failed to give a timeline, and those leases should be reinstated to the winning bidders, who fairly won those leases in a public auction. IPAMS believes all 77 leases should have been reinstated, and that DOI continues to politicize the leasing process. Secretary Salazar stated that the remaining 52 deferred parcels will continue to be analyzed for leasing, yet after seven years of environmental review, Utah producers are left asking how much analysis is enough?
Click here to view IPAMS press release issued after the press conference.
Reception for Senator Mark Begich (D-Alaska)
November 2, 2009 in Denver, CO
A reception for Sen. Mark Begich (D-AK) will be held in IPAMS conference room on Monday, November 2, 2009 at 12:00 p.m. Sen. Begich is among a handful of Democratic senators who are strong advocates for our industry. If you would like to serve on the Host Committee or attend this event, please contact Jon Bargas.
Cancelled: IPAMS and the Wildlife Habitat Council Present An Informational/Social Event and Barbeque at Lake Lehow
Unfortunately, we have cancelled this event due to weather concerns and will reschedule for sometime during the spring of 2010. The event was previously scheduled for October 10, 2009. In the meantime, please contact Spencer Kimball to learn more about this unique corporate partnership opportunity to create high quality wildlife habitat around Lake Lehow and educate Denver metro kids on Colorado’s natural resources.
They’re REALLY Starting to Catch On!
By Marc W. Smith, IPAMS Executive Director
As I mentioned a couple weeks ago, we’re starting to see some truly positive coverage in the media about why our country needs to turn to clean, domestic, abundant, and affordable natural gas to address our energy, economic, and environmental challenges. IPAMS is not passively hoping that the media and policymakers will suddenly see the big picture and begin to advocate for policies that call on increased use of natural gas. Instead, we are aggressively taking our message directly to those who need to hear it most. Over the last month, IPAMS President George Solich has met face-to-face with four editorial boards from newspapers across the West… The editorials and columns published as a result of our meetings confirm that our message is relevant, timely, and provides common sense solutions. Never before have we seen the media “get it” like they have on this issue.
Editorial: Natural gas is key to cleaner energy (Denver Post, 10/01/2009)
Editorial: Natural-gas climate (Grand Junction Daily Sentinel, 09/23/2009)
Opinion: New Energy, Take Two (by Vincent Carroll, Denver Post, 10/04/2009)
Editorial: Natural gas (Salt Lake Tribune, 10/02/2009)
Wyoming gains in pairing of wind, natural gas (Casper Star-Tribune, 09/24/2009)
Editorial: Energy industry advances, even in down economy (Casper Star-Tribune, 09/24/2009)
To help highlight this growing support for a higher utilization of natural gas, IPAMS has built a new page on our website, entitled “Building The Case.” I encourage you to review and use some of the materials on this page to help promote the use of natural gas.
U.S. Senator Blanche Lincoln (D-AR) Joins the Growing List of Natural Gas Supporters in Congress
Last month, IPAMS released a letter including the names of nine U.S. Senators who requested the Senate Environment & Public Works Committee take advantage of America’s abundance of clean burning natural gas to dramatically lower CO2 emissions in both the near and long term when crafting Senate climate change legislation.
Click here to read the letter from Sen. Lincoln to Chairwoman Barbara Boxer
If you haven’t done so already, please click here and read about the growing chorus of those now publicly promoting the use of clean-burning, abundant, American natural gas.
IPAMS Annual Photo Contest is Here!
IPAMS is looking for scenic photographs featuring wildlife, oil and gas operations, or any picturesque scenes from around the West. The winner will have his/her photo appear on the cover of IPAMS 2010 Calendar, which is distributed to member companies, media, other trade organizations, government officials, and business associations. The calendar has proven to be a very helpful tool in demonstrating industry talking points and illustrating visually that oil and natural gas development has a small and temporary environmental impact. The calendar will feature photos of former development areas that have since been reclaimed, wildlife near development, technological advances, etc. Each month will also include a fact that highlights the importance of our industry and the steps we take to minimize environmental impacts.
Please submit all photos (300 dpi or better) to Jon Haubert no later than October 9, 2009.
IPAMS Calendar Sponsorship Opportunity
The IPAMS yearly calendar is a great, cost-effective way to highlight your company’s active involvement in IPAMS and environmentally responsible development of oil and natural gas in the Intermountain West. Company logos are visible 365 days of the year on the IPAMS calendar and reach a wide variety of industry, government and public interests.
For more information on IPAMS calendar sponsorships, please contact Jon Haubert.
Click here to view last year’s calendar.
IPAMS has its own YouTube Channel
Looking for industry footage? IPAMS has launched ipams1 as a way to collect and archive video of companies responsibly and safely developing America’s energy resources. Please use ipams1 for presentations and/or references for industry practices and techniques. Have you found a video you think we should add to our collection? Email links to Jon Haubert and recommend it be added.
IPAMS Welcomes Its Newest Member:
Chimney Rock Capital Partners
Other Upcoming Meetings
* Utah Basin Advisors Network/Utah Call-Up Briefing – October 13th at 10:00 a.m.
* Air Quality Committee – Bi-Weekly Call - October 13th at 3:00 p.m.
* WRAP Phase III Wind River Projections Meeting – October 14th at 10:30 a.m.
* Leasing Advocacy Meeting - October 29th at 10:00 a.m. (Please note date change)
* Legislative, Legal and Regulatory Committee – October 29th at 1:30 p.m.
Agendas are available for upcoming meetings at http://www.westernenergyalliance.org/advocacy/. All meetings unless otherwise indicated are Mountain time, and at IPAMS and via teleconference.
Visit westernenergyalliance.org for the latest news affecting the Intermountain West’s oil and natural gas industry. Headlines are updated daily from local, national and international news sources. You may also sign up for daily newsbrief emails under the Manage Account section of the “Members Only” page.
The West
Groups ask BLM to suspend streamlined drilling reviews (IPAMS Quoted)
published in: The Daily Sentinel on: 10/07/2009 by: Dennis Webb
Fifteen conservation groups are asking the Bureau of Land Management to suspend use of a streamlined approach to regulating oil and gas drilling, pending an internal review of the practice. The groups’ request comes after the Government Accountability Office said in a September report the BLM’s use of what are called categorical exclusions in Colorado and elsewhere “has frequently been out of compliance with both the law and BLM’s guidance.” Meanwhile, the Independent Petroleum Association of Mountain States has released a position paper detailing its concerns about the report.
Nominations Sought for BLM Environmental Practices Awards
The Bureau of Land Management is accepting nominations for its fifth annual award program for outstanding oil, gas, geophysical, and geothermal operators who demonstrate leadership and creativity in reducing the impacts of their projects. The awards showcase the best management practices (BMPs) on BLM-managed public lands, other Federal agency lands, Indian Trust lands, or Federal lands where the surface is privately owned and the BLM manages the mineral estate.
Environmental BMPs are state-of-the-art mitigation measures applied on a site-specific basis to reduce, prevent, or avoid adverse environmental or social impacts. By reducing the area of disturbance, adjusting the location of facilities, and using various other techniques to minimize environmental effects, the BLM and operators are significantly reducing impacts to wildlife, soil, water, air, and scenic quality that may be associated with new energy development.
Click here to read BLM’s announcement.
Colorado
Chevron says drilling stopped at Piceance Basin
published in: Reuters on: 10/06/2009 by: Edward McAllister
Chevron Corp has stopped drilling at its Piceance Basin in Colorado due to low U.S. gas prices, the company told Reuters on Tuesday. Chevron had previously said that drilling at the basin had slowed. “There is no current drilling activity [at Piceance], but the resource will still be there when natural gas markets improve,” a company spokeswoman said Tuesday. [end of article]
Wilderness proposal includes drilling ground
published in: Associated Press on: 10/06/2009 by: Judith Kohler
U.S. Rep. Diana DeGette’s new wilderness proposal includes about 40,000 acres on top of western Colorado’s Roan Plateau, much of which has been leased for gas and oil development. The draft bill released last week would designate 34 separate Colorado sites totaling 890,000 acres as federal wilderness. They would be off-limits to many activities.
Natural-gas processing plant at full capacity, Williams says
published in: The Daily Sentinel on: 10/03/2009 by: Dennis Webb
Williams is now operating at full capacity for natural gas processing at its new Willow Creek plant in Rio Blanco County, the company says. Williams said in a news release that its $360 million plant began operations Aug. 7. It has since achieved full processing capacity of 450 million cubic feet per day. Although the plant is moving as much gas through its system as it can handle, it has yet to take full advantage of a cooling process that enables it to remove natural gases such as ethane and propane in liquid form. Those products can be sold separately.
BLM Best Management Practices Workshop
October 14, 2009 9:30 a.m. – 4:30 p.m. in Rifle, CO
BLM is hosting an oil and gas workshop on ‘Best Practices for Community and Environmental Protection’ to facilitate the use of best practices in oil and gas development through greater understanding of BMPs and community and industry interests. The workshop will take place on Wednesday, October 14th, 9:30 – 4:30 at the Garfield County Fairground, Rifle with a special evening session on constructive engagement to follow from 6:00 – 8:00 pm. There will also be a field trip the afternoon of October 13th. The event is being cosponsored by the CU Natural Resources Law Center and the Colorado Oil and Gas Conservation Commission.
The workshop is free, please RSVP/register by sending an email to nrlc@colorado.edu. (Please put “BMP workshop registration” in the subject line) or leave a message for Carolyn at 303-492-1281. Click here for more information.
EHS Peer Group 4th Quarter Meeting
October 15, 2009 at 8:30 a.m. in Denver, CO
The 4th Quarter 2009 Rocky Mountain Environmental, Health, and Safety (EHS) Peer Group meeting will take place on Tuesday October 15th at 8:30 am. The meeting is at Williams’ offices at 1515 Arapahoe Street (16th Street Mall and Arapahoe Street), Tower 3, 7th floor.
Please RSVP Laura Sillstrop at by October 13, 2009. Click here for more information.
Montana
Editorial: Multiple energy projects are as big as Montana’s Big Sky
published in: Great Falls Tribune on: 10/07/2009 by: Editorial Staff
It doesn’t happen too often, which is a major reason that construction plans worth hundreds of millions of dollars get plenty of attention around here. Such projects are not entirely predictable and tend to bubble into public view from different directions, often over long periods of time. As a result, many people may not have noticed that (a) there are many of them, and (b) almost all of them have to do with energy.
New Mexico
NM Governor, legislators face huge deficit for FY 2010
published in: New Mexico Free Press on: 10/08/2009 by: Brad Buck
First, the state was looking at a $134 million deficit from last year. Now, it’s staring down the barrel of a deficit that could be up to $550 million for the current fiscal year, which ends June 30, 2010. State legislators will meet in special session soon to solve the difference between tax revenues and spending. In August, legislators were told they were facing a $433 million deficit. The latest figure is closer to $550 million, said Sen. Peter Wirth, D-Santa Fe.
Environmental group challenging oil and gas rule
published in: Associated Press on: 10/08/2009 by: Staff
An appeal filed in state district court contends the state Oil Conservation Commission weakened its oil and gas waste pit rule by allowing a higher level of chloride. The New Mexico Environmental Law Center appealed the rule, which went into effect in June. The rule is aimed at safeguarding groundwater supplies from thousands of oil waste pits in the state.
Editorial: New Mexico politics: Today’s state budget deficit predicted four years ago
published in: Las Cruces Sun-News on: 10/04/2009 by: Walt Rubel
A report prepared by the state’s Legislative Finance Committee and presented to the Revenue Stabilization and Tax Policy Committee on June 2, 2005, should put to rest any arguments suggesting that state officials couldn’t have possibly predicted the financial mess they now find themselves in. “Projected recurring revenue growth may be too low to support the estimated recurring expenditure level in (fiscal year) 09 to (fiscal year) 10,” the report said. The report predicted that the “Structural imbalance could reach $419 million by FY09.” That proved to be Kreskin-like in its accuracy. The deficit plugged by lawmakers at the start of this past legislative session was some $450 million.
North Dakota
North Dakota economy slows but doesn’t stop
published in: Grand Forks Herald on: 10/07/2009 by: Ralph Kingsbury
The tables displayed this month document what I consider to be the most significant change ever in the North Dakota tax system. It is a change I have long argued for. North Dakota finally has started down the road to a fair and equitable tax system on the state and local level. It will do more to create business growth within the state than any other program the state has instituted. I am referring to the $295 million entry in the General Fund Biennium Revenues table. That entry is there for the first time because it shows the transfer of state money into funding for elementary and secondary education as a 75 mill reduction in property taxes.
Community Profile: Williston, ND
published in: Prairie Business on: 10/05/2009 by: Rick Killion
After suffering through past energy booms and busts, leaders and business people in the extreme northwestern North Dakota community of Williston remain cautiously optimistic. They believe that this time around the community is in for sustained economic growth. The Williston area was blessed with some of the nation’s richest crude oil and natural gas deposits. But the blessing has also made the local economy susceptible to the volatile swings of worldwide energy markets.
Utah
Red Rock hearing: Agreement on wilderness, but not on how or how much
published in: Salt Lake Tribune on: 10/02/2009 by: Matt Canham
Everyone who participated in a congressional hearing Thursday on a bill granting wilderness status to massive areas of Utah agreed the state has spectacular lands that deserve protection. But passionate disagreements emerged over how to accomplish that. Utah’s five federal lawmakers appeared at the House subcommittee hearing to denounce the Red Rock bill, a statewide effort 20 years in the making that would protect 9.4 million acres from new roads, mining or off-road vehicles.
Utah Governor’s Gala 2009
October 30, 2009 in Salt Lake City, UT
The 2009 Gala for Utah Governor Gary Herbert will take place on Friday October 30th in the Grand Ballroom at the Salt Palace Convention Center in Salt Lake City, Utah. This is an opportunity to support Governor Herbert, who is a strong supporter of natural gas and oil development in Utah
Wyoming
Wyoming governor Dave Freudenthal to seek third term?
published in: Politico on: 10/08/2009 by: Erika Lovley
Term limits prevent Wyoming Gov. Dave Freudenthal from seeking a third term in 2010. That much is a fact. But unlike in more than a dozen other states, where governors’ races are taking shape as term-limited incumbents prepare to leave the stage, in Wyoming, the contest is at a standstill as the state awaits word on Freudenthal’s plans. More specifically, the race remains frozen in place until the governor announces whether he will sue to overturn the state’s term limits law.
Energy company seeks bids
published in: Billings Gazette on: 10/05/2009 by: Staff
A company with oil and gas holdings in the Bighorn Basin and the Powder River Basin has solicited bids from potential buyers of its Wyoming properties and other U.S. wells and leases, raising concerns among some Clark residents about its long-term financial stability. Windsor Energy accepted bids last week on almost all of its holdings in an effort to determine their market values for tax purposes, said Jeff Bull, health and safety manager for the company.
Has methane drilling left us high and dry?
published in: Gillette News-Record on: 10/03/2009 by: Steve Mcmanamen
Maybe, maybe not. It took two decades to pump about 174 billion gallons of water out of the Powder River Basin. Until now, those numbers have been speculative, but a new report by the Wyoming Geological Survey shows the amount of water actually pumped out of Powder River Basin aquifers since coal-bed methane drilling started. The report has not been analyzed yet, but will give regulatory agencies an idea of the effects of a decade of intense coal-bed natural gas development in the Powder River Basin. The Geological Survey’s Keith Clarey puts it in perspective. Clarey, who authored the new report on coal-bed methane water drawdown, says the water pumped from 1993 to 2006 would roughly fill Lake DeSmet twice.
Washington Watch
Government Accountability Office Studies
IPAMS has been involved in several GAO studies over the last year. We’ve found that it’s better to provide input into the studies than to just have to live with the consequences. GAO conducts studies in response to requests from Members of Congress, who then base oversight actions and legislation on the results.
• Categorical Exclusions (CX): A recent study on the Energy Policy Act of 2005 Section 390 CXs is one example. Although IPAMS disagrees with the mischaracterization of the report in the media and some of the particulars in the report (see IPAMS press release from last week), we do agree with some of GAO’s basic recommendations. Our early participation in the study also gives us leverage in our reaction to the study (see IPAMS letter to GAO about the study). IPAMS out-front media approach , including the press release and editorial board meetings, resulted in IPAMS included as a strong reaction in an article in The Grand Junction Sentinel about 15 environmental groups asking the BLM to suspend use of the Section 390 CXs. Wouldn’t it be nice to ask the BLM to suspend their use of certain laws as well?
• MMS Verification Study: Another GAO study on the accuracy of MMS royalty data was released recently. IPAMS members also provided input to this study. Please contact Kathleen Sgamma with questions and comments.
• Leasing Protest Study: GAO has approached IPAMS again, this time for a study on the impact of lease protests and legal challenges to natural gas and oil projects. IPAMS will be meeting with investigators during the Utah Call-Up (Initial Agenda) in Salt Lake City, and would appreciate it if your company could send a representative. If your company is unable to attend, please provide Kathleen Sgamma with any information about how lease protests or legal challenges have held up your projects.
US natural gas lobby gaining traction in Washington, DC
published in: Financial Times on: 10/08/2009 by: Sheila McNulty
It has taken several months of intense lobbying, but the US natural gas industry is gaining traction in Washington. Not only have those behind the Boxer-Kerry climate bill being debated in the Senate assured the industry that its goals will be represented in the bill. But Representatives from Oklahoma and Pennsylvania – Dan Boren and Tim Murphy – have created a Congressional Natural Gas Caucus to boost the profile of natural gas.
Energy companies get leeway under Frank’s derivatives plan
published in: E&E News, Subscription Required on: 10/06/2009 by: Ben Geman
House Financial Services Chairman Barney Frank (D-Mass.) is floating over-the-counter derivatives reform plans that provide energy companies substantial exemptions from requirements they feared would hinder their use of OTC markets to hedge against fuel and power price volatility. Frank circulated draft legislation Friday that would establish new federal regulation of OTC markets. The bill is part of a broader financial market reform effort following the banking crisis and collapse of companies including insurance giant American International Group.
New climate bill supports further natural gas production
published in: Forth Worth Business Press on: 10/05/2009 by: John-Laurent Tronche
Natural gas continues to gather political fans, evident by a new climate bill unveiled by Sens. John Kerry, D-Mass., and Barbara Boxer, D-Calif., last week that aims to reduce greenhouse-gas emissions and includes incentives for more natural gas production and implementation. The bill’s stated purpose is to create clean energy jobs, achieve energy independence, reduce global warming pollution and help transition to a clean energy economy – lofty goals, by any estimation, but increasingly popular among natural gas advocates who say the fuel is a good way to achieve them. (They also contend that natural gas is a good bridge from coal and oil to future technologies like wind, solar and more.)
BLM employees too cozy with advocacy groups — IG
published in: E&E News, New York Times on: 10/05/2009 by: Noelle Straub
Bureau of Land Management employees appeared to be “less than objective” and created the potential for illegal behavior when coordinating with environmental groups over the National Landscape Conservation System, the Interior inspector general has found. The Interior IG investigated the interaction between federal employees and nongovernmental organizations (NGOs) after receiving a complaint that NLCS directors were potentially engaged in inappropriate relationships with advocacy groups and possibly violated anti-lobbying statutes and policies. The report focuses largely on interactions with the National Wildlife Federation.
Obama Aide Concedes Climate Law Must Wait
published in: New York Times on: 10/05/2009 by: Andrew C. Revkin
President Obama’s top climate and energy official said Friday that there was virtually no chance Congress would have a climate and energy bill ready for him to sign before negotiations on a global climate treaty begin in December in Copenhagen. The remarks by the official, Carol M. Browner, during an onstage interview in Washington, were the first definitive statement by the administration that it saw little chance of Congressional passage this fall.
Natural gas industry hopeful on climate bill (IPAMS Quoted)
published in: Denver Business Journal on: 09/30/2009 by: Cahty Proctor
Colorado’s natural gas industry, hoping gas would figure more prominently in the U.S. Senate’s version of a bill aiming to curb the nation’s carbon dioxide emissions, was still hoping Wednesday — hours after Senate Democrats released their proposal. “We’re still digging into it,” said Marc Smith, executive director of the Denver-based Independent Petroleum Association of Mountain States (IPAMS). “We’re optimistic that it appears that they are beginning to realize that natural gas must play a lead role [in curbing CO2 emissions]. But we remain very concerned about some provisions in the bill.
Rep. Paul Broun (R-Georgia) Introduces the RELIEF Act
Congressman Paul Broun, M.D. (GA-10), member of the Natural Resources Committee, celebrated American Energy Freedom Day by introducing the Removing Excess Litigation Involving Energy on Federal Lands (RELIEF) Act. This bill will help cut red tape and curtail frivolous lawsuits that are designed to stop American energy exploration.
Click here to read the news release.
Media Watch
Editorial: More wilderness?
published in: St. George Spectrum on: 10/05/2009 by: Editorial Staff
Almost everyone who loves this part of the country is an environmentalist, at least to one degree or another. After all, we want to preserve the awe-inspiring landscape and want to breathe clean air. As our population grows, some of the land will have to be developed. But we also must take steps to preserve wilderness areas that allow for natural habitat for plants and animals while also saving the rugged backcountry areas from development. It’s a delicate balance, to be certain, which is why any legislation related to wilderness areas is so contentious.
Opinion: New Energy, Take Two
published in: Denver Post on: 10/04/2009 by: Vincent Carroll
Gov. Bill Ritter’s 31-page Climate Action Plan devotes a miserly two paragraphs to the potential of natural gas as a “bridge” fuel to a greener economy. The 2007 document prattles on and on about trash collection, a “climate registry,” and all manner of marginal or exotic methods for limiting greenhouse gas emissions while largely ignoring an elephant in the room. (Another elephant — nuclear power — is more or less dismissed.) My, how minds change. Suddenly the governor has got that old-time fossil-fuels religion. Not only is he pushing for a climate bill in Congress that encourages greater use of natural gas (the House version that passed in June doesn’t), but he recently told the Western Slope’s Club 20 that natural gas production is “mission critical” for the state’s economy.
Editorial: Natural gas- Cleaner fuel deserves attention (IPAMS Quoted)
published in: Salt Lake Tribune on: 10/02/2009 by: Editorial Staff
Who knew? The potential of natural gas to provide many decades of relatively clean power for homes and industry, to power vehicles and help clean up the atmosphere at the same time has been a well-kept secret. According to groups like the Independent Petroleum Association of Mountain States and America’s Natural Gas Alliance, the U.S. could reduce its output of CO2 by 40 percent simply by utilizing existing gas-fired power plants to capacity, substituting them for existing coal-fired plants, one of the biggest sources of America’s greenhouse-gas emissions.
Environment and Wildlife
Threatened Preble’s mouse could get 18,462 more acres of protection
published in: Denver Post on: 10/08/2009 by: Bruce Finley
A new federal push to protect 18,462 Front Range acres as habitat for the Preble’s meadow jumping mouse has set off an endangered-species battle royale. Wildlife conservationists cheered the release Wednesday of the new federal proposal, which could limit development on the land, mostly along 184 miles of rivers and streams. Representatives of developers promised a court challenge, arguing that protecting more habitat isn’t necessary because the mouse itself already is protected as a threatened species.
Natural gas to play key role in cutting CO2: study
published in: Reuters on: 10/07/2009 by: Robert Campbell
Global natural gas production will need to grow by 70 percent if the world is to start reducing carbon dioxide emissions quickly enough to avoid the worst effects of climate change, according to a study released on Tuesday. World gas demand will rise to 4.8 trillion cubic meters per year by 2030 from 2.8 trillion cubic meters today, the study by the International Gas Union concluded. The world needs more low-carbon fuels, such as natural gas, to replace coal and to provide reliable back-ups for renewable energy sources such as wind and solar that depend on the weather.
Wildlife underpasses successful
published in: Billings Gazette, Casper Star-Tribune on: 10/06/2009 by: Jeff Gearino
The energy boom has brought increased truck and car traffic along U.S. 789 between Creston Junction on Interstate 80 and Baggs in recent years. The result has been the loss of several hundred deer each year to vehicle mortality as the deer migrate across the busy Carbon County highway to winter range.Those deer are getting some help to avoid collisions with vehicles after state officials recently installed a wildlife highway underpass near Baggs.
WGA News Release: New Technologies, Strategies Will Assist States in Protecting Key Wildlife Corridors
October 5, 2009
Gov. Brian Schweitzer, Chairman of the Western Governors’ Association, today demonstrated a state-of-the-art information and mapping tool Montana will use, and other states are also developing, to identify and protect key wildlife corridors. The governor addressed the Western Governors’ Wildlife Council at a meeting here attended by a variety of public, non-profit and private entities and the general public. “My colleagues in the Western Governors’ Association and I face a real challenge,” Schweitzer said. “We are seeking a balance between developing the tremendous resources of the region and our desire to protect the landscapes and creatures that inhabit them.
Click here to read the full news release.
Technology, Alternatives & Renewables
U.S. ethanol profits from bumper corn crop
published in: Reuters on: 10/07/2009 by: Sam Nelson
The U.S. ethanol industry is chalking up the best profits in months after suffering through 2008, with a bumper corn crop this year, relatively high energy prices and the possibility of exports bolstering the sector. Corn is the foundation of the U.S. ethanol industry, and producers got a huge boost to their bottom line this year as corn prices were cut in half from the record high of $7.65 per bushel posted in the summer of 2008.
Whose wind is it?
published in: Associated Press on: 10/06/2009 by: Matt Joyce
As developers pursue the construction of wind farms in Wyoming, some questions linger about the nature of wind rights and how they relate to land ownership. Wyoming lawyers generally agree that whoever owns the surface of the land also owns the rights to develop wind resources. But the Wyoming Legislature has not addressed whether landowners can sever wind resources from their property, as state law allows for mineral resources.
Gas, coal engineers team to capture methane
published in: Casper Star-Tribune on: 10/05/2009 by: Dustin Bleizeffer
Each year U.S. coal mines vent about 158 billion cubic feet of methane gas into the atmosphere where it has 23 times the heat-trapping capacity as carbon dioxide. But federal regulators are unlikely to recommend coal mine methane be placed under a “cap” because venting it is first and foremost a safety mandate for underground coal miners.
New technologies may grab carbon right out of air
published in: Reuters on: 10/01/2009 by: Staff
As the world wrestles with how to cut greenhouse gas emissions, new technologies are gearing up to grab climate-warming carbon right out of the air. This is different from trapping carbon dioxide as it comes out of pollution sources like factories and power plants. This so-called air capture technology could be set up anywhere and suck carbon directly from the atmosphere.
Markets
Gas Pains: Lots of Supply and Little Demand Spells Bearish Future for Natural Gas
published in: Wall Street Journal, Subscription Required on: 10/08/2009 by: Keith Johnson
The outlook for oil prices is anyone’s guess. When it comes to natural gas, bears are coming fast and furious. The picture is pretty clear: Gas supplies keep growing while demand keeps shrinking. That’s kept gas a lot cheaper than it was last year—and makes the medium-term outlook for gas pretty bearish. (Natural gas futures were inching up about 1% in early trading today to about $4.93 per million BTUs.)
US gas drilling must rise to meet demand -EIA
published in: Reuters on: 10/08/2009 by: Robert Campbell
U.S. natural gas drilling activity will have to start to rising soon to meet demand, U.S. Energy Information Administration official Richard Newell said on Wednesday. The EIA predicted on Tuesday that U.S. natural gas production would decline by 3.8 percent in 2010 as producers idle rigs and wells in response to brimming inventories and sharply lower prices.
Natural gas comes back
published in: Financial Post on: 10/07/2009 by: Wilf Gobert
One month ago, natural gas prices were at a cyclical low, trading at 40% of the equivalent value of crude oil. Since then, gas prices have risen 60%, though still 30% below its crude-equivalent. Natural gas is coming back! On Sept. 4, the NYMEX October futures contract for natural gas closed at US$2.73, a 25-to-one ratio to the price of oil, compared to its heating value ratio of 6-to-one. Alberta spot gas, AECO-C closed at $1.96, a new low in 2009, the lowest since July 2002, and a 37-to-one ratio to the Canadian posted price of light crude oil. Talk about a natural gas bear market.
Industry News and Events
Natural gas comes back
published in: Financial Post on: 10/07/2009 by: Wilf Gobert
One month ago, natural gas prices were at a cyclical low, trading at 40% of the equivalent value of crude oil. Since then, gas prices have risen 60%, though still 30% below its crude-equivalent. Natural gas is coming back! On Sept. 4, the NYMEX October futures contract for natural gas closed at US$2.73, a 25-to-one ratio to the price of oil, compared to its heating value ratio of 6-to-one. Alberta spot gas, AECO-C closed at $1.96, a new low in 2009, the lowest since July 2002, and a 37-to-one ratio to the Canadian posted price of light crude oil. Talk about a natural gas bear market.
Perry named chairman of oil group that opposes climate change legislation
published in: Dallas Morning News on: 10/05/2009 by: Elizabeth Souder
The Interstate Oil and Gas Compact Commission, a voice against climate change legislation, named Gov. Rick Perry chairman. Perry, who doubts humans contribute to climate change, has used the issue to campaign for reelection. In a speech to IOGCC members in Biloxi, Miss., he called a climate change bill being considered by Congress “the single largest tax in the history of our nation,” and warned the bill would trigger massive job losses and inflation.
The Front Range Energy Career Expo and Forum (Expo)
October 15, 2009 at Tivoli Auraria Campus
The Front Range Energy Career Expo and Forum is an educational event for high school students in the Denver Metro area. The goal of the event is to bring college representatives, energy companies, and students together in one location, to present information about college options and job opportunities to the future generation of leaders that will graduate from high school in the next three years.
Click here for the Sponsorship Form.
Gas & Oil Company Compliance in a New Era of Regulatory Oversight
October 15, 2009 8:30 a.m. – 5:00 p.m. in Denver, CO
Fulbright & Jaworski has assembled an impressive faculty of legal and industry experts to review and explore recent developments and emerging trends in the area of gas and oil industry stakeholder compliance with the latest regulations and rulings of the Federal Energy Regulatory Commission and Commodity Futures Trading Commission. Attendees will be briefed on why compliance and considered responses to agency enforcement actions are important, what these agencies expect from companies that operate within their jurisdiction, and how to implement an effective compliance program.
Hydraulic Fracturing Conference
November 12-13, 2009 in Denver, Colorado
Presented by the American Institute of Professional Geologists, this day and a half conference is designed to focus on technical, regulatory, legal, and political aspects of this production-enhancing technology. Presenters and attendees will represent the private sector, government, and academia. The conference is structured to allow for consideration and ample discussion of the most crucial aspects of the hydrofracing process as it pertains to oil & gas production, groundwater production, environmental, and economic impacts.
The American Institute of Professional Geologists (AIPG) was founded in 1963 to certify the credentials of practicing geologists and to advocate on behalf of the profession. AIPG represents the professional interests of all practicing geoscientists in every discipline. Its advocacy efforts are focused on the promotion of the role of geology and geologists in society.
Click here for Call For Abstracts and Click here to Register Online (click on Events)
For additional details contact Cathy Duran or (303) 412-6205.
