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2-28-13 President Presides Over Federal Land Energy Losses

Alaska Governor Sean Parnell, IOGCC, OCS, Shell, Photo by Dave HarbourYesterday, in wake of Shell's announcement, Governor Sean Parnell (NGP Photo) said: “Taking the long view, we are at the early stage of a new era of oil exploration in the Arctic, one that will continue for decades in a measured and responsible way. Shell continues to have our full support for this project that is critical to America’s domestic energy security.”

Dan Kish (See video below), distinguished Senior Vice President (Policy) for the Institute for Energy Research sends the following report, released today.  It is particularly relevant in view of yesterday's news that Shell is suspending its 2013 summer exploration plans in federally controlled areas of the Alaska OCS.  The Report inventories Obama Administration actions resulting in declining production on federal lands. The significant federal area production declines have surely contributed to the loss of hundreds of thousands of direct and indirect industry jobs and tax support for federal and local government coffers throughout America.        -dh


Yesterday, shortly afterMark Begich, Alaska Senator, OCS, Shell Shell announced suspension of its 2013 Alaska exploration program, U.S. Senator Mark Begich (NGP Photo) said, "“I am very disappointed that Shell will not resume drilling operations in the Chukchi and Beaufort seas this summer.  However, I’ve always believed Alaska can develop OCS resources safely and responsibly and I remain committed to a robust offshore oil and gas program in the Arctic.  Off-shore drilling is critical for Alaska jobs and for the nation’s energy security.  Shell is still moving forward with its science and data collection this summer so Alaskans can feel reassured that jobs are still generated and that Shell will be even more prepared for the 2014 season.” 

Begich's staff further noted that, "the Chukchi and Beaufort Seas are estimated to hold more than 24 billion barrels of oil and 100 trillion cubic feet of gas which makes it one of the most promising areas in the world for oil and gas development.  Senator Begich said he will hold a hearing on Shell’s situation later this spring but still very much supports development in the Chukchi and Beaufort Seas."   -dh

Today's Institute for Energy Research Report:

 “I’m proud of the fact that under my administration, oil production is higher than it has been in a decade or more. President Obama, February 20, 2013

When President Obama claims responsibility for the increase in oil and natural gas production in the United States, it is important to know that he is referencing the energy miracle that is occurring on private and state lands, where his Administration has little or no say over what happens.  In fact, the United States is the largest natural gas producer in the world, and last year, production of oil increased at the fastest annual rate since Abraham Lincoln was in the U.S. Senate.  From those lands that the President oversees, however, oil and natural gas production fell again last year.
The Office of Natural Resources Revenue of the Department of Interior (ONRR) just released its sales volume data for fiscal year 2012 with the result that oil and natural gas production on federal lands dropped again in FY 2012.[i] Natural gas production on federal lands continues to fall and oil production on federal lands fell in both fiscal years 2011 and in 2012 ending two years of increase. Specifically:
 
According to the Bohrer, "The two spoke about offshore drilling in Alaska's Arctic waters and the need to make sure exploration and production is done 'with a level of care and stewardship,' Murkowski said. She said her takeaway was that Jewell is committed to the process under which Shell was allowed to work in the region last year."
 
"Murkowski said she pointed out the 'tremendous' resource potential in Alaska, off-shore and in the National Petroleum Reserve-Alaska and Arctic National Wildlife Refuge, and the limitations to access. She said she wanted Jewell to understand that for REI customers to enjoy all that the state has to offer, 'you have to have an economy in Alaska.'" 
 
 
  • Crude oil production on federal  lands is 4 percent lower in fiscal year 2012 than in fiscal year 2011, (a smaller percentage than its reduction in fiscal year 2011 compared to fiscal year 2010 levels), with the total percentage reduction over the 2 years at 15 percent.
  • Offshore oil production in federal waters is 8 percent lower in fiscal year 2012 compared to fiscal year 2011 with the total percentage reduction over the past 2 years at 23 percent.
  • Natural gas production on federal lands is the lowest in the 11 years that data is available and is 7 percent lower in fiscal year 2012 than in fiscal year 2011 with a total percentage reduction over the past 2 years of 15 percent.
  • Offshore natural gas production in federal waters is 20 percent lower in fiscal year 2012 compared to fiscal year 2011 levels with a total percentage reduction over the past 2 years of 32 percent.

Video below posted February 20, 2013:

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