If you use Energy Link, beware that some operators are sending out your 1099s only through Energy Link. You need to review the emails you get and go into energy Link and check your Inbox to print those 1099s.
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Forbes article on how switching to LPG for cooking in developing countries is reducing pollution and carbon emissions. If any of you have ever seen one of Scott Tinker’s presentations, cooking over wood and dung in poor countries is also a major cause of blindness.
Here is an article highlighting how oil & gas fights COVID. Thought it was along the same line of highlighting benefits that are not often publicized.
Chevron trying to buy rest of Noble Midstream it doe not already own.
Op ed by Wayne Christian about hurdles in solving flaring issue.
State of the Industry report from TIPRO on Texas Energy Industry.
Wall Street Journal article 2/14/21 updates nomination of NM Rep Deb Haaland as Interior Secretary. I attempt to link the article below. WSJ says no date yet for her confirmation hearing by Senate Energy Committee, quotes her hostile rhetoric about fossil fuels, camping out to protest the Dakota Access Pipeline, describes her as supporting the Green New Deal (she actually co-sponsored it). WSJ says unlikely Republicans can vote down her appointment (I think its impossible inasmuch as Democrats will disparage Republicans as racists for opposing the first American Indian cabinet official). I suggest you contact your Senators about this appointment. Will try to link:
https://www.wsj.com/articles/interior-secretary-nominee-on-collision-course-with-oil-industry-11613318400?st=6dplp8q7a5ombtr&reflink=desktopwebshare_permalink
Port of Corpus Christi is now the leading “energy gateway” port in the U.S.
On ERCOT struggles, the Wall Street Journal analysis showed that between Jan. 18 and Feb. 17:
- All sources had some capacity go off line during the demand surge;
- Wind generation dropped 93%;
- Gas generation increased 450% despite the failure of some capacity and supply shortages;
- Coal generation increased 47%; and
- Nuclear generation dropped 26%.
Even though wind is only about 30% of capacity, at times it has provided over 50% of power generated. When the cold snap hit, it was producing 42% of ERCOT’s power, but dropped to 8%.
Even with all of those sources of energy, Mother Nature still won, if only for a short time.
"ERCOT models for wind generation declines during the winter. Why didn’t WSJ limit to between a few days before the polar vortex hit Texas and Feb. 17?
[" Wind shutdowns accounted for 3.6 to 4.5 gigawatts – or less than 13% – of the 30 to 35 gigawatts of total outages, according to Woodfin. That’s in part because wind only comprises 25% of the state’s energy this time of year.
While wind can sometimes produce as much as 60% of total electricity in Texas, the resource tends to ebb in the winter, so the grid operator typically assumes that the turbines will generate only about 19% to 43% of their maximum output."](Frozen Wind Farms Just a Small Piece of Texas’s Power Woes - Bloomberg)
At this link, one may see that actual wind energy production increased February 11 through February 17.
Link only shows one day graph
Biden’s ban on drilling federal lands was questioned in Cimarex earnings webcast. Cimarex CEO speaks diplomatically and carefully, and I paraphrase in part. CEO is “…very confident that existing permits on existing leases will be allowed to be developed”. Expect Obama era regulations to return and be strengthened, a new regulatory environment.
(Paraphrased for clarity) Federal authorities can impede drilling in many ways if they wish, Cimarex obtains permits 18 months before spud, fairly immaterial changes are subject to sundry notice which authorities must approve, and operators seek various rights of way while project is under way requiring federal approvals, even for surface lines for frac water, and Feds must approve any crossing of federal lands.
Cimarex speaks to multiple elected officials from New Mexico, but no mention of talks with Biden administration officials, “confident that cooler heads will prevail”. “Every indication we’ve been given has led us to be optimistic that we’re going to be able to develop our assets in a very prudent manner”.
Cimarex stock popped 10% in a flat market day.
My apologies. I see that I misread the graph. And finding a daily production report is proving to be very difficult.
Senate Energy and Natural Resources Committee is questioning Interior Secretary appointee Deb Haaland, yesterday and today 2/24/21.
In November 2020, Rep Haaland said “If I had my way, it’d be great to stop all gas and oil leasing on federal and public lands”, and she has camped out at pipeline protests in the past.
Yesterday she acknowledged that the U.S. will continue relying on fossil fuels while moving towards Biden’s goal of zero carbon emissions by mid-century, “It is President Biden’s agenda, not my own agenda, that I will be moving forward”.
See graph and comments https://twitter.com/aeberman12/status/1364306310896918529
New EIA stats on natural gas production in Texas during cold snap. Nearly a 50% decline, mostly due to wellhead freezing. There was not the corresponding decline in electricity generation, although it was among the forms which declined (after it had increased 400%). I assume that is because of gas in pipelines already that continued to be delivered to power plants and caused the electric generation effect to be less. Also, the rolling blackouts ERCOT enacted also hit the Permian, which accounts for some of the drop off.
Although wind generation appears to have been the biggest culprit, in terms of percentage decline in generation, it does show if the cold snap had lasted longer, we would have been in a world of hurt due to wellheads freezing up eventually. Would be interested in knowing how long it takes dry gas to be processed and travel in the pipelines to the coast and major cities.
Daily price of gas at Waha went over $500/mcf at peak of shortage.
WSJ article (paywall involved) summarizing first day of testimony at Texas House hearing. One tidbit - apparently an ERCOT computer may have misread some of their moves and shut down some of the gas fired plants, although others simply froze.
FYI, my summation of confirmation hearings of New Mexico Rep Debra Haaland, Interior Secretary nominee. Source: four hours of hearings (two sessions), Senate Energy & Natural Resource Committee. I seek to be factual and objective. My opinion: Rep Haaland’s confirmation is certain, fait accompli the first Native American cabinet official.
Background. Debra Haaland Albuquerque lawyer elected to Congress in 2018 co-sponsor of Green New Deal. Interior Secretary rules over permits to drill Bureau of Land Management lands. Haaland has a history of harsh rhetoric about fossil fuels, e.g., “no new pipelines”, “keep fossil fuels in the ground”, “I pledge to vote against all new fossil fuel infrastructure”, “I am wholeheartedly against fracking and drilling on public lands”, “Republicans don’t believe in science”. Haaland participated in pipeline protests and campaigned in 2018 on replacing New Mexico’s oil and gas revenue with cannabis taxes.
Q&A
Haaland was meek and non-controversial, presented herself as moderate, promised to follow Biden’s agenda and not her own. Haaland defended her past radical rhetoric by explaining she previously represented New Mexico constituents, but will represent all Americans as Interior Secretary and will implement Biden’s agenda instead of her own.
Hearings were polite, contrary to some media reports. Republicans were respectful even when Haaland was evasive. Haaland previously met privately with some committee members. Predictably, Republican questions focused on America’s need for O&G, energy independence, and preservation of energy jobs. Democrats focused on climate change and creating clean energy jobs. Most questions involved O&G production and pipelines, others related endangered species, national monument issues, coal mines, water rights, members’ pet projects and constituencies, etc.
Rep Haaland is unfamiliar with O&G vital statistics, except that to say 25% of American “carbon” production occurs in federal lands and there are 7,700 unused drill permits.
Q. Should the federal government continue to permit O&G wells? A. “Uh, yes, I believe that’s happening”. Biden declared a … “pause on new leases, not existing ones”.
Q. Should the government permit gas pipelines? A. “I believe this will go on for quite some time”.
Q. Should the government permit oil pipelines? A. “of course”.
Q. Why did you protest Dakota Access Pipeline (DAPL)? A. To protect water quality.
Q. Shutting down DAPL after three years of operations will deprive three Indian tribes of royalties, are you concerned? A. No meaningful response.
Q. Any evidence that Biden’s ban will reduce global oil production or consumption? A. We should work together.
Q. Biden agenda will increase energy costs, cause affordability problems for low-income Americans. A. Haaland hopes to work together, hopes everyone can have solar panels.
Haaland: “valid existing leases will move forward”, repeatedly stated “It’s a pause, not a ban” as her understanding of Biden’s executive orders. Haaland would not answer whether she will recommend that Biden extend the “temporary pause” into a permanent ban (Haaland seemed unaware some cabinets advise presidents like a board of directors).
Haaland: we cannot become carbon neutral overnight.
Haaland will follow the law and Biden’s agenda. (No mention that environmentalists and capitalists interpret the same law differently, e.g., Dakota Access Pipeline).
Rep Haaland sometimes resembled a “deer in the headlights”, especially the first day. (To be fair, few of us are grilled for hours on-camera). Example: Eliminating federal O&G production will not reduce demand, OPEC will simply produce more oil, America will forced to import oil, jobs will be lost. Haaland’s response to such if-then questions was a look of confusion and vague response that we will create new jobs or progress towards carbon neutral future.
Haaland dodged controversial answers by replying that she will review issues as they arise, will discuss matters with Senators … “I will listen to you” … “everyone should work together”. When pressed for answers, she simply responded that she is willing to communicate, at a later time, with whichever Senator asked a tough question. (Evidently, a half dozen questions are too tricky to answer in televised public hearings).
Haaland either failed to comprehend certain questions or simply answered a different question. When asked (again) about three Indian tribes losing 90% of their tribal revenue due to DACL pipeline shut down, she murmured something incoherent about jobs. Asked if eliminating federal lands production will result in the need to import foreign oil, she said she has not studied those statistics.
Haaland does not know whether transporting hydrocarbons is better by pipeline or by diesel-fueled trucks/trains.
Biggest disappointment was Republican failure to distinguish existing and future O&G leases, and Haaland took advantage by assuring continuation of “valid existing leases” and avoiding the topic of U.S. production once existing leases and permits are depleted. Unclear whether BLM will approve new permits on existing federal leases, or new leases.
Republicans failed to probe facilitating “valid existing leases” inasmuch as BLM can find excuses to negate existing approved leases in myriad bureaucratic ways, and BLM may conceivably decide that old/existing leases are not “valid” for bureaucratic reasons.
Haaland and Democrats will create new jobs in the “Civilian Climate Corps” and renewable energy. The CCC is a “brilliant idea” but job description was not described for the “tens of thousands” of CCC jobs.
Chairman Manchin blamed excessive methane flaring & venting on the federal government not approving gathering pipelines. Haaland “will be happy to work with you”.
Chairman Manchin supports Biden’s moratorium, said companies lease 26,000,000 onshore federal acres and 12,000,000 offshore, of which 53% and 77% are unused respectively.
Chairman Manchin seemed to hint E&P companies may be brought in to testify whether they are truly free to activate their existing permits on existing leases.
Haaland: Broadband Internet is a human right.
(I’m guessing Haaland was coached & counselled to “stick to the script” of clean energy and create jobs, and avoid debating substantive issues with Republicans).
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Thanks for the summary. So far, people who were hoping the more extreme parts of Biden’s campaign platforms were just talk to get the nomination are being proved wrong. Stopping new permits on federal lands was in his website platform in black and white. Sounds like Haaland will be fine with implementing this.