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First, he understands the rule-of-law and jurisdictionally overreaching abuses of the current administration affecting energy production which, in turn, underpins the historical and future wealth of America. Second, he articulated virtually all of the values which many of us believe are required to sustain the economy, security and national faith of the country and, indirectly, the wellbeing of entire free world. Before the speech this viewer had considered Cruz to be smart and dedicated but too young, too inexperienced, too "extreme" for a presidential role. With this speech, Cruz may have convinced some of us that he has the Dedication of Washington, the Wisdom of Jefferson, the Courage of Lincoln and the attractive Nature and Faith of Reagan–a tall order.
But if another candidate shows himself to be superior, more power to him or her. God knows the country needs a uniquely exceptional person to take on the challenge.
One only hopes the republic can survive the next couple years with most of our freedoms still intact — however soiled, tattered and threatened they may now appear to be.
Meanwhile, Cruz appears to be of such value and important future impact that the faithful might do well to pray for his protection during this demanding and fragile period. -dh
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National Commentary: After watching National Commentary: The overreaching Obama Administration once again seeks to further restrict energy access to federal lands through onerous and duplicative fracking regulations (i.e. possibly guided by environmental activists receiving foreign money to thwart the U.S. fracking phenomenon. More below…. -dh)
House Natural Resources Chairman Rob Bishop, said the variance provision “will create an entanglement of bureaucracy previously unseen in our nation’s energy history.” See more…. -dh
See other Energy-In-Depth Fracking responses below:
Interior unveils new hydraulic fracturing rules. USA Today. Industry groups immediately filed suit against the new regulations, calling them an overreaction to unsubstantiated environmental concerns about fracking. "At a time when the oil and natural gas industry faces incredible cost uncertainties, these so-called baseline standards will threaten America's economic upturn, while further deterring energy development on federal lands," said Barry Russell, president and CEO of the Independent Petroleum Association of America. NOTE: IPAA also quoted in the Washington Post, The Hill,Bloomberg, New York Times, Washington Times, LA Times, Oil and Gas Journal,Houston Chronicle/Fuel Fix, POLITICO, UPI, Associated Press, Reuters, National Journal,Washington Examiner, E&E News, and the Durango Herald. Read IPAA’s full comments on the new rules and the lawsuit IPAA and the Western Energy Alliance have filed against the BLM HERE.
Dems say they want to regulate HF, not ban it. E&E News (sub req’d). Industry groups contend that no matter what the lawmakers say, the long-term goal of the environmentalists pushing the bills is to end domestic oil and gas production. "It's part of a two-step strategy: Give the federal government the power to shut down oil and gas development across the country, and then lobby the federal government to shut down oil and gas development across the country," said Simon Lomax of Energy In Depth.
Industry Challenges First Federal HF Rules. Bloomberg. U.S. drillers already reeling from a six-month drop in oil prices denounced new U.S. fracking regulations as costly and unnecessary, and quickly met them with a lawsuit. After three years of debate, the U.S. Interior Department said Friday that drillers on federal land must reveal the chemicals they use, meet construction standards for wells and safely dispose of contaminated water.
New HF rules too onerous, say firms. Wall Street Journal. The Obama administration has issued comprehensive rules on hydraulic fracturing, trying to set a national standard for controversial drilling practices that have helped fuel the US oil and natural-gas boom. The weekend move sparked immediate criticism from energy companies that claimed the rules were too onerous. Two industry groups filed a lawsuit minutes after the announcement, seeking to block the rules in a federal court. Environmental groups said the rules didn’t go far enough.
Do new federal rules duplicate existing state laws? Associated Press. Fracking chemical disclosure is among the federal rules announced Friday by Interior Secretary Sally Jewell. That raised speculation the federal rules might duplicate what Wyoming — a top state for oil and gas production from federal lands — already has in place. Non-necessary, duplicative rules add time and cost to oil and gas projects, said John Robitaille with the Petroleum Association of Wyoming. "Any time we add additional regulation, especially in the pricing environment we're in now, it's going to impact whether projects get implemented or not," Robitaille said Friday.
Pump the Brakes on Shale Regulations. National Review, editorial. In yet another Obama-administration Friday-afternoon news dump, the Bureau of Land Management announced that it is issuing broad and cumbrous new regulations on certain techniques of drilling for natural gas and oil — hydraulic fracturing, a.k.a. “fracking” — on land under its control.
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Alaska Economic Update- Part 1
We include this Economic Update because 90% of Alaska's state operating budget depends on oil production– which also sustains over a third of the state's entire economy! Because of its dependence on oil revenue, Alaska's tax and regulatory policies affecting oil and gas also have a significant effect on the industry we feature here. -dh By Mark Edwards (NGP Photo), Economist
2015 is generally predicted to be a flat year for the Alaska economy. Some segments like government, construction and professional services are likely to shrink, but these losses will be offset by gains in tourism, health care and retail. This will result in no growth in the job market and population will likely remain at its current levels. Historically low long-term interest rates and low levels of building activity are expected to keep the housing market stable.
The largest issue looming is the dramatic fall in oil prices. The current low price environment has many people rightfully concerned about the possible impacts on Alaska’s economy. After averaging over $100 a barrel for three and a half years, Alaska has been experiencing prices as low as $45. As of March 17, 2015, it is at $47.50. However, based on currently available information and analysts’ estimates, prices should begin to increase this year. The over-supply of oil that led to the recent price drop should moderate as higher cost producers are not able to operate profitably. Continued global demand for energy is expected to move prices higher by this summer when excess inventories are consumed. Prices in the $60 to $80 range should keep long-run capital investments from the energy industry stable. Oil production levels are expected to be stable through 2017.
Over $52 billion has been saved in the Permanent Fund and it grows despite the roughly $800 million a year spent on dividends for residents due to investment returns and continued deposits from ongoing natural resource projects in Alaska. Additionally, the state has over $50 billion saved in other investment accounts. The largest portion, $28 billion, is reserved for the retirement system obligations for state employees. Other funds are dedicated to specific department operations, such as $1 billion for airport bonds, $1 billion in the power cost equalization endowment fund to subsidize rural energy costs, $586 million in the public school trust fund and many others. To balance an estimated $3 billion budget deficit this year the Legislature can draw from the $11 billion Constitutional Budget Reserve, $3 billion in the Statutory Budget Reserve, and $5 billion was in the General Fund at year end 2014. The current budget deficit is expected to force the Governor and Legislature to freeze the growth in the operating budget and cut the capital budget. Research from UAA’s Institute of Social and Economic Research (ISER) has confirmed the widely held belief that the state government has been spending in excess of its long-term sustainable levels. The Gross State Product in Alaska is $51 billion. A $1 billion reduction in state spending would reduce aggregate demand in our economy by about 2%. A positive way to look at this would be despite government cuts we would still have a $50 billion economy. Most analysts predict the reduction in state spending will be lower, in the $500 million range. The new Governor has signaled he is taking the issue seriously, and will proceed with a measured approach, so as not to exacerbate the problem. Stay tuned for future posts. The next post will include updates on jobs, unemployment rates, and population. House Natural Resources Committee Chairman Rob Bishop, said the variance provision “will create an entanglement of bureaucracy previously unseen in our nation’s energy history.” Obama administration unveils fracking rules for federal lands (San Francisco Chronicle)(Contrast this new Obama administration, abusive attack on states' rights and energy technology with today's Cruz speech, inserted here. Also, read Energy-In-Depth reactions to new, restrictive fracking rules. -dh)WASHINGTON — The Obama administration issued the first federal mandates governing hydraulic fracturing on public land Friday, triggering an immediate lawsuit from oil industry groups and a pledge by congressional Republicans to undo the regulation. |
Each year, Northrim Bank publishes the Alaska Economic Update. It is an opportunity to review the past year as well as look forward to the current year in regards to oil prices, jobs and housing. We will break the report into four sections and will post the full report in our ‘Resources’ section for your convenience.
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