The Balance Sheet for September 14, 2011

2011-09-14

THE BALANCE SHEET                                                                                 Sept 14, 2011
Our weekly update to unravel the industry and political spin around the energy debate

IN CASE YOU MISSED IT

IS REP. LAMBORN PROMOTING UNSAFE CX?
On Friday, Rep. Doug Lamborn’s Energy & Minerals Subcommittee held a hearing to examine categorical exclusions (CX). During the Bush years, BLM officials used CX to avoid conducting scientific review prior to green lighting drilling permits. In May of 2010, Interior Secretary Ken Salazar reformed the use of CX in drilling permitting to avoid its abuse and protect air quality, water quality and wildlife. Naturally, the oil and gas industry was unhappy to lose the ability to take reckless shortcuts on public lands. So enter Big Oil campaign contribution recipient Rep. Lamborn who claims that a lack of unsafe CX is hurting the oil industry.

BLM PLAYS OFFENSE
During the same hearing, the Bureau of Land Management went on the offensive, announcing it would proceed with a rulemaking procedure to solidify Sec. Salazar’s reform. “[Interior] Secretary [Ken] Salazar should be applauded for continuing to ensure we have responsible energy development in the West,” Matt Garrington, Deputy Director of the Checks and Balances Project, told The Hill. “We have seen what happens when oil-and-gas companies take shortcuts, and it’s not pretty.”

PROTESTERS HIGHLIGHT CLINTON’S CONNECTION TO KEYSTONE
The thousands of protesters staked out in front of the White House didn’t miss the connection between Secretary of State Hillary Clinton and the Keystone XL pipeline. The Checks and Balances Project captured video interviews of protesters making their voices heard during one of the final days of demonstrations.

DID YOU KNOW?

API JOBS REPORT: STRONG ON HYPE, WEAK ON FACTS
Last week, Colorado-based Headwaters Economics issued a rebuttal to the American Petroleum Institute jobs report. Headwaters Economics’ research highlighted a few areas where the facts didn’t uphold API’s hype:

API hype

  • Increasing regulatory burdens on the oil and gas upstream sector will result in higher development costs, which can potentially hinder the growth of production, tax revenues, and job creation.
 The facts

  • According to the Bureau of Labor Statistics, in 2011 the energy industry has boomed, adding roughly 10,000 jobs a month, and drilling activity is approaching a thirty-year high.
  • When it comes to land-based oil and gas drilling in the United States, there is little evidence that state and federal regulations are hampering industry’s ability to respond to market signals such as price, the “primeness” of a resource play, and technology.
  • The energy sector remains highly volatile, and a   review of its history would suggest future repetition of boom-bust cycles.

COMING UP THIS WEEK

WAS THERE A PROBLEM WITH OFFSHORE DRILLING?
On Thursday, the House Energy and Minerals Subcommittee is meeting to review proposed legislation concerning the Interior Department’s overhaul of offshore drilling policy. Our prediction – Rep. Lamborn and others will attempt to downplay the seriousness of the BP spill and try to get the words “regulations” and “jobs” in the same sentence as many times as possible. This hearing comes as  evidence is mounting regarding a potential new oil spill at BP’s Macanda oil well. The hearing is at 10 a.m. in 1324 Longworth.

CONTACT

Twitter: @CandBP | Email: tips@checksandbalances.org