Daily Archives: May 1, 2012
GOP says Obama, Dems are undermining domestic energy production
The Obama administration is undermining domestic fossil-fuel production, say Republican Party officials.
They point to comments by EPA Regional Administrator Al Armendariz, who resigned Sunday as agency administrator for the south-central region, suggesting that the agency’s “general philosophy” is to “crucify” oil and gas companies as being symbolic of the administration’s attitude.
The Washington Free Beacon reported in a March 13, 2012 article that Obama Interior Department officials have intentionally “slow walked” drilling permits, reducing the number of annual permits by two-thirds from 157 before the 2010 drilling moratorium to 51 after. The GOP argues that small- to medium-sized businesses are the ones getting hurt, not “Big Oil” as Democrats like to argue.
As a result, half of all Gulf of Mexico businesses have laid-off workers and a further 39 percent have cut salaries and/or hours. A further 46 percent of affected businesses have moved their operations out of the gulf.
EPA regulations could result in a 11 percent drop in gas production and a 37 percent drop in domestic oil production.
The controversial practice of fracking, necessary to extract gas from a large portion of the nation’s gas wells, could be slashed by up to 52 percent, according to the American Petroleum Institute.
The same attitude carries over to coal, where the Washington Post reported that looming EPA regulations would end the construction of conventional coal-fired power plants nationwide. Thirteen percent of all coal-fired power plants are likely going to shut down because of EPA regulations.
This has hit too close to home for a traditional Democratic constituency – coal miners.
United Mine Workers President Cecil Roberts went to the extent of comparing EPA Administrator Lisa Jackson’s actions against coal with the Navy SEALs’ takedown of Osama bin Laden.
By John Rossomando /// April 30, 2012
Related articles
- Obama officials rip into GOP gasoline bills (mb50.wordpress.com)
- EPA Official: EPAs “philosophy” is to “crucify” and “make examples” of US energy producers (mb50.wordpress.com)
- EPA Official on How To Deal With Non-Compliant Companies: ‘Hit Them as Hard as You Can’ & ‘Make Examples Out of Them’ (nicedeb.wordpress.com)
- EPA Official Quits Over Remark (myfoxchicago.com)
- EPA Is Sorry for the Analogy But Not the Context of Crucifying the Oil & Gas Industries (independentsentinel.com)
BP to Sell GoM Assets as it Focuses on Growth
BP wants to sell its interests in what it describes as “non-strategic assets” in the Gulf of Mexico as part of its plan to focus its businesses worldwide on major assets and future growth opportunities.
Announcing its results for the first quarter of 2012 in London on Tuesday, BP said that the assets it plans to sell include the Marlin, Horn Mountain, Holstein, Ram Powell and Diana Hoover fields.
Reflecting an increased focus on exploration, BP said it added significantly to its interests in promising South Atlantic equatorial margin plays during the quarter. The firm said it farmed in to four exploration concessions with Petrobras in Brazil, deepened its interests offshore Namibia and was awarded three new blocks offshore Uruguay. BP also gained access to the promising potentially liquids-rich Utica shale formations in Ohio, it added.
BP remains on track to start up six new major upstream projects in 2012, it said. These include Clochas-Mavacola in Angola and Galapagos in the Gulf of Mexico, both expected to start in the second quarter.
During the first quarter BP made an underlying replacement cost profit, adjusted for non-operating items and fair value accounting effects, of $4.8 billion. The figure (which is broadly comparable with net income under US accounting rules) was lower than the $5 billion earned by the firm in the previous quarter because of the adverse impact of a $541 million consolidation adjustment related to unrealized profits in inventory held within BP’s downstream business.
“We have made a good start against our strategic priorities for 2012. During the quarter we gained access to significant new deepwater and US shale exploration acreage, our ongoing divestment programme has reached $23 billion, and we have five deepwater rigs at work in the Gulf of Mexico. This operational progress will underpin the financial momentum we expect to come through as we move into 2013 and 2014,” said Group Chief Executive Bob Dudley.
During the quarter BP made payments of $1.5 billion into the $20 billion Trust that it set up in the wake of the Deepwater Horizon disaster. At the end of the quarter, BP had made total payments into the Trust of $16.6 billion and it expects its payments to end in Q4 2012.
At the end of Q1 2012, BP had paid a total of $8.3 billion in individual, business and government entity claims, advances and other payments. The firm also expects to pay a further $7.8 billion as settlement for private economic loss and medical claims stemming from the Deepwater Horizon accident and oil spill after it reached a definitive agreement with the Plaintiff’s Steering Committee on April 18.
Continents of the World


