.The Texas Energy Report

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.The Texas Energy Report

Texas O&G Severance Tax Income Healthy for Fiscal 2019 But Down for August Y/Y

September 9, 2019

In November the Texas Comptroller will deposit a healthy $167 billion into each of the state Economic Stabilization Fund (ESF) and State Highway Fund for the year 2019 after counting up the receipts from oil and natural gas severance taxes, but the O&G tax income numbers for August continue a downward trend.…
 

NuStar Completes Pipeline Projects In 24 Hour Period

September 9, 2019

In what the CEO calls an “amazing coincidence,” NuStar Energy LP says it’s completed three pipeline projects that greatly expand capacity for Permian Basin crude takeaway to Corpus Christi and to move refined products to Mexico.

And the company said crude loadings at its Corpus export terminal will double to about half-a-million barrels per day by the end of September — an increase expected to come from crude arriving on EPIC Midstream and Plains All American Pipeline LP pipelines from the Permian and New Mexico…
 

Spot Power Prices Hit Record, TCEQ Eases Plant Emissions Limits As Heat Wave Hits Texas

September 5, 2019

As the Public Utility Commission joined the Electric Reliability Council of Texas in urging consumers and businesses to cut back on power usage Thursday and Friday afternoons, spot prices on the power markets soared to a record high on Thursday and the TCEQ said it will allow some power generators to exceed emissions limits during the current heat wave….
 

Some Investors Have Lost Confidence In Oil

By Alex Mills

 

September 5, 2019

The oil industry has been through some tough times during the last four decades, but recent allegations that fossil fuels are linked to environmental catastrophes, and the lack of fiscal performance have oil companies facing a new storm the size of Hurricane Dorian.

Politicians expressed outrage in the 1970s when prices rose alleging oil companies were making “obscene profits.” Washington imposed the crude oil “windfall profits tax.” Later President Clinton proposed and Congress almost passed a tax on the energy content of oil known as the Btu tax, and President Obama proposed a cap-and-trade law on oil production, which passed the House but narrowly failed in the Senate. All of these issues were designed to increase the cost of oil.

Most of the 20-some Democratic candidates for President have proposed some form of restrictions, reductions, or total ban on oil in the future. Senator Bernie Sanders, who is within the top three contenders in many polls, has the most outrageous ideas. …
 

RRC Receives National Energy Education Award For RRC OIL; Online Oil & Gas Inspection Query

August 29, 2019

MEDORA, N.D. – The Railroad Commission of Texas is the winner of the 2019 Chairman’s Stewardship Award for Energy Education from the Interstate Oil & Gas Compact Commission. The award is in recognition of the Commission’s RRC Online Inspection Lookup (RRC OIL) tool. For the first time in the Commission’s history anyone, anywhere can look up the inspection and enforcement history of oil and gas wells and operators online. The searchable database provides 24-hour, 7-day a week access to this important information.

North Dakota Governor Doug Burgum presented the award to RRC’s Executive Director Wei Wang and Clay Woodul, Assistant Director for Oil and Gas Field Operations, today at the IOGCC’s Annual Conference in Medora, N.D.

“We are proud and honored to receive this prestigious award,” RRC Chairman Wayne Christian said. “It is recognition of our continuing efforts to educate the public about how we regulate the state’s oil and gas industry to ensure safe, responsible energy production…..
 

TIPRO Applauds EPA on Latest Proposal to Update Air Regulations for Oil and Natural Gas: Press Release

August 29, 2019

Austin, Texas – Under a new regulatory proposal announced Thursday, August 28, the U.S. Environmental Protection Agency (EPA) plans to roll-back burdensome air standards for the U.S. oil and natural gas industry, in a move expected to save the oil and natural gas industry $17-$19 million a year in compliance costs, for a total of $97-$123 million from 2019 through 2025. The EPA’s rule-making seeks to update the 2016 New Source Performance Standards (NSPS) for the oil and gas industry by rescinding emissions limits for methane from the production and processing segments of the industry, but would keep emissions limits for ozone-forming volatile organic compounds (VOCs). The following statement can be attributed to Ed Longanecker, president of the Texas Independent Producers & Royalty Owners Association (TIPRO):

The Trump Administration continues to scale back unnecessary, burdensome regulations hindering growth of the U.S. oil and gas industry, while at the same time strengthening environmental protections in the United States. TIPRO commends the administration and EPA for recognizing that the addition of these sources to the 2016 NSPS rule was not appropriate because the agency did not make a separate finding at that time to determine that the emissions from the transmission and storage segment of the industry causes or significantly contributes to air pollution that may endanger public health or welfare.

The 2016 NSPS were among the most overreaching regulations targeting the U.S. oil and natural gas industry promulgated under the previous administration. Since the EPA updated its NSPS and permitting rules in 2016 for new, reconstructed and modified oil and gas sources, TIPRO has lobbied aggressively against the onerous regulations.

The U.S. oil and gas industry is making significant progress in reducing energy emissions as domestic production continues to set new records. Methane emissions from onshore U.S. oil and natural gas production fell 24 percent, while oil and natural gas production rose 65 percent and 19 percent, respectively, from 2011 to 2017, according to data from the U.S. Environmental Protection Agency and the Energy Information Administration. These positive energy emission trends are primarily attributable to voluntary actions from operators, including investment of approximately $300 billion in greenhouse gas mitigating technologies by U.S. oil and natural gas companies over the past 20 years.

Increasing use of natural gas for electricity generation has also resulted in reductions in the emissions of carbon dioxide (CO2) and criteria air pollutants. In fact, in 2017, the U.S. led the world in carbon emission reductions for the third consecutive year and for the ninth time this century. Since 2000, our nation’s energy-related carbon emissions have declined more than any other country on earth.

Federal regulations should support, not stifle this progress. Only through a fair, stable regulatory environment has the country been able to accomplish such major achievements, resulting in cleaner air and water resources, while leading the world in oil and natural gas production.

 

About TIPRO

The Texas Independent Producers & Royalty Owners Association (TIPRO) is a trade association representing the interests of nearly 3,000 independent oil and natural gas producers and royalty owners throughout Texas. As one of the nation’s largest statewide associations representing both independent producers and royalty owners, members include small businesses, the largest, publicly-traded independent producers, and mineral owners, estates, and trusts.