BISMARCK, N.D. (AP) — Tribal leaders on an American Indian reservation in the heart of North Dakota's booming oil patch are proposing fees for companies that burn and waste natural gas.
The Three Affiliated Tribes outlined its plan to impose fees in a six-page document sent to oil companies. In it, the tribe said companies would be required to pay royalties for "flaring" natural gas to compensate for lost revenue when the gas isn't brought to market and sold.
Oil production on the Fort Berthold Reservation accounts for about a third of the state's oil output of more than 1 million barrels a day, which has made North Dakota the second-largest oil producing state in the country behind Texas.
Republicans in Congress on Thursday pointed to a new Energy Department analysis of the strong economic growth in energy-producing states as fresh evidence in support of their calls for greater oil and gas drilling in federal areas.
The Energy Information Administration reported that of the six states where oil and gas development and mining accounted for more than 10 percent of their economy, all but one had stronger growth than the national average last year.
MEXICO CITY (AP) — Mexico has passed laws to open its oil, gas and electric industries to private and foreign investors after 76 years of state control. Now comes the hard part.
Experts say Mexico's hopes for tens of billions of dollars in outside investment, and possibly a shale gas boom like the one occurring across the border in Texas, hinge on being able to design the kind of tenders, contracts and concessions that would actually prove attractive to companies that already have their hands full drilling in deep sea waters and hydro-fracking elsewhere.
On that question hinges Mexico's hope for an industrial boom.
Fracking could help unlock reserves for deep water drillers, particularly in the Gulf of Mexico, Bloomberg reports, noting that players like Halliburton Co. are moving cautiously because of the harsh environment.
With new technology U.S. oil drillers have the potential to exceed government forecasts of producing 9.5 million barrels a day in 2016, but whether they will actually do so depends on the price, Pioneer Natural Resources CEO Scott Sheffield told a conference in Denver, FuelFix reports.
MEXICO CITY (AP) — Mexico's Congress approved a comprehensive energy reform that will break more than seven decades of state monopoly and dramatically expand the role of foreign and private companies in the country's oil and gas industry.
The package of new laws approved late Wednesday will now go to the desk of President Enrique Pena Nieto, who has made energy reform the cornerstone of his platform to expand Mexico's economy and to make the country a global competitor.
"Today we took a big step toward the future for Mexicans," Pena Nieto said via his Twitter account. "We will take better and more sustainable advantage of our energy resources."
MEXICO CITY (AP) — Mexico's Senate debated the final pieces of legislation Wednesday needed to enact a dramatic expansion of the role of foreign and private companies in the state-run oil industry.
The Senate was expected to approve the final packages of laws to regulate private oil and gas drilling that is being allowed for the first time since the industry was nationalized 76 years ago. The overhaul is supported by the governing Institutional Revolutionary Party, the conservative National Action Party and a smaller party that together can form a majority.
EOG Resources Inc. Tuesday reported a 7 percent increase in second quarter profit to $706 million on strong performance in North Dakota’s Bakken Shale and in Eagle Ford Shale and the Permian Basin in Texas, FuelFix reports.
A senior official with the American Council for Capital Formation, which is funding “Unlock Crude Exports,” a new push to repeal the ban on shipping U.S. crude overseas, says doing so would allow the country to take full advantage of its energy boom, FuelFix reports.
The Environmental Protection Agency’s proposed rule to limit air pollution from refineries could have the opposite effect because it would force installation of new flaring systems instead of continuing the trend of reducing flaring, according to comments the American Petroleum Institute filed on the regulation, The Hill reports.
Oil was sliding again early Thursday after the Federal Reserve wound up its asset-purchase program and the Energy Information Administration reported the highest level of U.S. production since the 1980s. West Texas Intermediate crude for December delivery fell 81 cents to $81.39 a barrel in electronic trading on the Nymex, while in London Brent lost 86 cents to $86.26, Bloomberg reports.
Sen. Mary Landrieu, D-La., made a pointed reference to her influence as chair of the Senate Energy and Natural Resources Committee while Republican candidate Rob Maness emphasized his support for increased oil and gas drilling, during the final debate of the campaign before the state’s Nov. 4 “jungle primary,” The Times-Picayune reports.
Republican Senate candidate Scott Brown visited the Seabrook nuclear plant Wednesday, and later in a statement accused incumbent Sen. Jeanne Shaheen, D-N.H., of failing to support nuclear power, but she responded by saying nuclear energy is an important part of the fight against climate change, The Associated Press reports.
Osaka Gas Co. and Chubu Electric Power Co., which have contracted to buy gas from the proposed Freeport LNG terminal, will also supply $1.2 billion toward construction of the first unit, while $3.85 billion will come from Japanese banks, FuelFix reports.
Plaintiffs in a class action lawsuit against Exxon Mobil over a 2013 oil spill in Arkansas filed a motion in court this week demanding that the company make public documents about the maintenance and repair of the Pegasus pipeline, The Associated Press reports.
A spokesperson for the European Commission says a marathon negotiating session Wednesday failed to generate an agreement in the gas dispute between Russia and Ukraine, and talks are continuing Thursday, Reuters reports.
Iran may still be wrestling with finding a way to cut a deal with the West over its nuclear program, to ease biting sanctions, but falling oil prices have added even more pressure to the situation, The New York Times reports.