Guest “Too fracking funny!” by David Middleton
CAUSE AND EFFECT: FOREIGN OIL IMPORTS CONTINUE TO GROW AS CALIFORNIA DENIES NEW FRACKING PERMITS
BY William Allison Jul. 14, 2021
Citing the need to reduce greenhouse gas emissions, California officials denied 21 fracking permits this week. What they didn’t mention was that the permit denials are more likely to benefit foreign oil producers than the environment.
State Oil and Gas Supervisor Uduak-Joe Ntuk cited climate change as the reason to deny the permits, as California aims to ban fracking altogether by 2024 and stop all oil development by 2045. But not issuing permits to develop domestic energy won’t prevent Californians from using gasoline and other petroleum productions – it’s just ensuring that more of the energy they use will be produced overseas and arrive by tanker.
In fact, for the past 25 years the amount of oil supplied to California’s refineries has essentially held steady at around 660 million barrels per year, but the source of the supply has changed drastically. In 1995, nearly all of that oil came from within California’s borders and Alaska. Today, the majority of the oil comes from foreign imports as data from the state’s Energy Commission shows:
Energy In Depth
Energy In Depth is a publication IPAA (Independent Petroleum Association of America).
California oil regulators deny new fracking permits
By ASSOCIATED PRESS |
PUBLISHED: July 12, 2021
SACRAMENTO — California denied 21 oil drilling permits this week in the latest move toward ending fracking in a state that makes millions from the petroleum industry but is seeing widespread drought and more dangerous fire seasons linked to climate change.
State Oil and Gas Supervisor Uduak-Joe Ntuk sent letters Thursday to Aera Energy denying permits to drill using hydraulic fracturing in two Kern County oil fields to “protect “public health and safety and environmental quality, including (the) reduction and mitigation of greenhouse gas emissions.”
The Mercury News
So… Rather than actively developing California’s vast petroleum resources, they are just importing more oil from these fine people:
If California doesn’t want to produce its own oil… And they want to reduce GHG emissions, maybe they should just import oil from the Gulf of Mexico (if I have to tell you when I’m being sarcastic, it takes all the fun out of sarcasm)…
US Gulf of Mexico Deepwater oil production has a smaller “carbon footprint” per barrel of oil produced than all but one major oil producer/producing region. Of course, in its infinite stupidity, the Harris-Biden Dominion is trying to Californicate Gulf of Mexico production, in favor of more imported oil.
Could restricting oil production in the US Gulf of Mexico lead to carbon leakage?
Federal actions have put the comparative emissions performance of the prolific US Gulf of Mexico under the spotlight
By Mark Oberstoetter, Head of Americas (non-L48) Upstream Research, and Mfon Usoro, Senior Research Analyst, US Gulf of Mexico Upstream
12 April 2021
As one of the few major oil producing areas under federal purview, the Gulf of Mexico appears to be a focal point of President Biden’s efforts to deliver swiftly on campaign promises. But while leasing bans and increasing royalties signal fast action on the energy transition, federal actions have consequences – and they can be global.
An important and unintended consequence of enacting more restrictive policies such as a lease ban or increase in royalty rate in the Gulf of Mexico is that it could give rise to carbon leakage to countries that export crude to US. Carbon leakage occurs when the greenhouse gas emissions from industrial production are transferred outside a regulated region to another area with weaker emissions constraints in place.
Despite the growth in domestic production, the US still imports six million barrels per day (b/d) of crude oil from foreign countries. If production from the Gulf of Mexico drops, that figure is likely to increase substantially. Overall emissions will then depend on regulations and controls in the countries from which that oil is imported. In essence, climate change is a global issue and removing or handicapping a low emitter hurts the collective global average.
How emissions-intensive is the US Gulf of Mexico?
US Gulf of Mexico deepwater emissions are less intensive than all but one importer: Saudi Arabia. And more than half of the area’s 2021 production will come from a public corporation with an existing net-zero pledge.
It makes me wonder… Who do Harris-Biden hate more? The oil & gas industry? Or the American people?
The Insult of Favoring OPEC’s Leaders Over America’s Energy Workers
By Scott A. Angelle
July 26, 2021
As demand for oil continues to grow, gasoline prices are climbing across the country. Yet, the Biden Administration has asked OPEC – not domestic producers and USA energy workers – for help to supply the U.S. with more oil. Enticing countries with lower environmental standards is actually detrimental to the Administration’s stated policy goal of combating global climate change by reducing fossil fuel usage.
While we search to expand alternative energy sources to help energize our future, we do not need to count on foreign sources to fuel our energy transition. A balanced approach to fix rising energy prices should be directed inward rather than relying on countries which do not share values with the U.S.
Competitive USA offshore leasing needs to continue without delay to allow for a balanced energy transition for the U.S., one which provides for the environment, energy, and the economy. This leasing program has been in place since 1953. Previously implemented consecutively by 12 USA presidents: 5 democrats and 7 republicans, they all recognized the bipartisan value of affordable energy and American jobs.
The facts clearly show U.S. offshore oil and gas is a viable source of energy at lower emissions. Recent research regarding carbon emissions reveals that U.S. Gulf of Mexico production has approximately half the carbon intensity per barrel of other producing regions worldwide. When it comes to flared or vented methane, the U.S. offshore industry has consistently been one of the best performing provinces in the world with a ratio of less than 1.25% of flared or vented to produced gas.
Put simply, oil and gas produced from the U.S. Gulf of Mexico is better for the environment than oil and gas produced almost anywhere in the world. USA energy workers are asking, “how can it be smart public policy to ask foreign countries to increase production of a commodity while the current USA policy seeks to curtail that same USA production, USA production that is often recognized as “climate advantaged?”
USA energy workers nor most Americans fail to see any logic in increasing foreign production rather than focusing on American jobs and American energy security.
Let us once again host competitive offshore lease sales, build better, improve the health of the planet, lower gasoline prices for our American families and recognize that USA Energy Workers Matter by focusing on the workers of Abbeville rather than Algeria; Lafayette, Larose, Lake Arthur, and Lubbock rather than Libya; Carencro, Cameron, Crowley, Cutoff, and Corpus Christi rather than the Congo; Vinton rather than Venezuela, and Kaplan rather than Kuwait. Additionally, the USA Energy Workers of Houston, Beaumont, Port Arthur, Lake Charles, Delcambre, New Iberia, Morgan City, Houma, the coastal parishes and coastal ports of Louisiana, and Pascagoula and Mobile are ready, willing, and able to help America increase climate-advantaged production and lower fuel cost for American families. Let’s give them a chance to put all hands on DECK rather than favoring OPEC.
Scott A. Angelle, the longest serving Director of the U.S. Bureau of Safety and Environmental Enforcement, also held positions in Louisiana as Lieutenant Governor, Secretary of LA Department of Natural Resources, Chairman of Louisiana Public Service Commission and Chairman of Louisiana Water Resources Commission.
Real Clear Energy
Well Joe… What is the “logic in increasing foreign production rather than focusing on American jobs and American energy security“?
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