The U.S. on Thursday held its first sale of oil and gas drilling rights on federal lands since passage of President Joe Biden's landmark climate change law, attracting more than $78 million in high bids for leases in New Mexico and Kansas.
The federal auction was just the second to be held in New Mexico, the nation's second-largest oil-producing state, since Biden became president in 2021.
Promontory Exploration LP of Midland, Texas and Devon Energy Corp (DVN.N) of Oklahoma City were the auction's top spenders, each picking up leases in New Mexico.
Click here for entire Reuter’s story.
The Century of Natural Gas
The headline above is not designed to make young heads explode, It’s really not. But it might.
Before getting to why that might be, consider why the headline is a credible statement. The evidence is, in total, overwhelming.
Here’s a 2023 headline from an anti-hydrocarbons website: “China, India lead US$534 billion global gas pipeline build out.” The article notes that globally, over 59,000 kilometres of transmission pipeline are under construction and an additional 151,000 kms are proposed (for reference, the earth’s circumference is 40,000 kms).
That’s just the growth, and that’s just the bigger transmission lines. Natural gas pipeline distribution systems are made up of large transmission lines and then smaller distribution systems. I have not been able to find a statistic for the combined length of the total global distribution system, perhaps none exists, but consider the U.S.’s pipeline system characteristics: The U.S. has over 300,000 miles of natural gas transmission lines, and about 2.2 million miles of smaller distribution pipelines – the ones that get gas to customers.
Those numbers, and particularly that ratio, give some examples of the staggering size of the global natural gas infrastructure system. And natural gas is used almost everywhere.
According to a gas infrastructure tracking site, about 130 countries in 2022 either have existing natural gas pipeline systems or have some in development.
Click here for the entire BOE Report by Terry Etam.
New Mexico BLM Office Reports Nearly $79M in Leases
The Bureau of Land Management New Mexico State Office conducted a lease sale offering 45 parcels totaling 10,123 acres within Cheyenne County, Kansas, and Eddy, Lea, and Chaves counties, New Mexico, on public lands managed by the Roswell Field Office, Carlsbad Field Office and Oklahoma Field Office. In total, 37 parcels totaling 8,596.25 acres sold for a total of $78,844,369.
Links to the environmental assessment, maps, parcel lists, Notice of Competitive Lease Sale, and proposed lease stipulations are available online at the BLM ePlanning website at: https://eplanning.blm.gov/eplanning-ui/project/2021616/510.
This BLM lease sale included updated fiscal provisions authorized by Congress in the Inflation Reduction Act, which prohibits BLM from issuing an authorization for renewable energy development on public lands unless an oil and gas lease sale has been held within the previous 120 days and BLM has offered a certain minimum number of acres for lease within the previous year:
Minimum bids for all offered parcels will be $10 per acre, an increase from the $2 per acre minimum bid set in 1987;
Royalty rates will be 16.67 percent, up from the previous minimum of 12.5 percent; and
Rental rates will be $3 per acre for the first two years; $5 per acre for years three through eight; and $15 per acre for years nine and ten. (Prior to the Inflation Reduction Act, rental rates were $1.50 per acre for the first five years and $2 per acre for each year thereafter, rates originally set in 1987).
Information on current and upcoming BLM lease sales is available through the National Fluid Lease Sale System.
Nigeria Introduces New Oil Laws
The Minister of State for Petroleum Resources, Chief Timipre Sylva, has announced six new regulations derived from the Petroleum Industry Act 2021. These regulations, aimed at promoting sustainable growth in the midstream and downstream sectors of the oil and gas industry, enhance clarity for industry operators and regulators.
They facilitate industry expansion, economic development, and prosperity. The regulations cover various aspects, including midstream and downstream operations, natural gas pipeline tariffs, gas pricing and domestic demand, license and permit transfer, petroleum transportation and shipment, and petroleum measurement.
Gov. Gordon to Speak at the Energy Expo In Jackson Hole
The Energy Exposition has educated tens of thousands of people in Gillette, Wyoming; Billings, Montana, and Loveland, Colorado, over the last 20 years on procedures, technology, safety, environmental practices, and equipment used in the oil and gas industry.
The serious work of producing and supplying energy to the United States and the rest of the world begins Tuesday morning, September 19th, with attendees and presenters gathering at the Snow King Events Center. Dr. Glen Murrell, the first Executive Director of the Wyoming Energy Authority, will open and welcome everyone to the event.
Exhibitors and Symposiasts represent a wide range of services, including but not limited to, exploration, production, downstream, and all phases of support to the oil and gas industry.
Wyoming produces 13 times more energy than it consumes, and it is the second-biggest net energy supplier among the states, after Texas.
Wyoming has been the top coal-producing state since 1986, accounting for about two-fifths of all coal mined in the United States in 2020. The state holds nearly two-fifths of U.S. coal reserves at producing mines.
Wyoming was the eighth-largest crude oil-producing state in the nation in 2021, accounting for slightly more than 2% of U.S. total crude oil output. The state was the ninth-largest natural gas producer, and accounted for about 3% of U.S. marketed gas production.
Wyoming’s large energy-producing sector and small population help make the state have the highest per capita energy consumption and the second-most energy-intensive state economy, after Louisiana.
Wind power in Wyoming has more than doubled since 2019 and accounted for 19% of the state’s electricity net generation in 2021. The amount of installed wind power-generating capacity in the state nearly doubled to just over 3,000 megawatts during 2020 and 2021.
As the marketing slogan goes, Wyoming is setting the stage on how to use all sources of energy.
To reserve Exhibit Space contact
Austin Jennings
239-898-3923
austin@energyexposition.com
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The Crude Life Daily Radio News & Lifestyle Update
Dr. Loren C. Scott, energy and economic expert, explains why so many energy and chemical companies are investing in Louisiana right now.
Click here for the exclusive, full length interview.
Loren C. Scott & Associates, Inc., is a 35-year old firm that provides economic consulting and public speaking services for a wide range of clients. Consulting activities include impact studies, forecasting services, analysis of policy proposals, and general economic analyses. Consulting clients include BP, ExxonMobil, Entergy Corporation, J. P. Morgan Chase, Capital One Financial, Nucor, Sasol, and a diversity of others. Our objective is to put together the very best team of associates to attack our client’s problems. Dr. Scott makes 50-70 presentations a year on the state of—and the outlook for—the economy and the energy sector in particular.
He is one of the 32-member National Business Economic Issues Council, which meets quarterly to discuss issues of state, national, and international interest. This group has experts who cover international trade, Washington economic policy, retail trade, trucking, steel, chemicals, etc. Dr. Scott is an energy specialist on the NBEIC. He has been appointed to the Economic Advisory Board of the U.S. Council on Competitiveness—a group made up of the CEOs of the Fortune 100, top university presidents, and presidents of three major unions.
He has been interviewed on MSNBC, CNBC, Bloomberg TV, and several local TV stations and his work has been cited in such publications as the Wall Street Journal, the Financial Times, USA Today, the Los Angeles Times and the Moscow Times, to name a few.
Dr. Loren C. Scott is President and founder of the firm. He was on the Economics Department faculty at Louisiana State University from 1969 to 1998, where he rose through the ranks from Assistant Professor to the holder of the Freeport-McMoran endowed Chair of Economics. He is presently Professor Emeritus of Economics at LSU.
Over the thirteen-year period from 1983-96, Dr. Scott was the chairman of the Economics Department at LSU. During that time, the Department’s ranking among the 3,000 economics departments in the U.S. rose from 101st to 38th. He received 7 awards at LSU for outstanding classroom teaching.
Dr. Scott is co-developer of the Louisiana econometric model, a model used for providing annual forecasts of the Louisiana economy, which are released each fall. He was a co-investigator on over $1 million in grant research at LSU and is the author of over 75 articles and technical reports in addition to reports written for consulting clients.
The Crude Life Daily Update has been running as a 3-minute news and lifestyle short on radio stations since 2011. In 2015 online podcast portals and news outlets were added to the list of distributors.
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New Nigerian Oil Laws, LA Booming, Millions in Leases & WY Gov. Gordon Speaking at Expo