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The US Department of the Interior's Minerals Management Service will revise the oil royalty valuation to respond to alleged royalty underpayments. Royalties will be based on the New York Mercantile Exchange's average crude oil futures prices rather than posted prices for those oil producers with federal leases. This program governs only 3% of US oil production but producers are concerned the program will be implemented for all royalty calculations., The U.S. Department of Interior's Minerals Management Service (MMS) is preparing to revise its controversial oil royalty valuation rule, but changes are unlikely to appease most oil firms. The agency [...]

The US Dept of the Treasury plans to issue sanctions against trade with Myanmar, and petroleum companies fear resulting financial losses. The National Assn of Manufacturers predicts that sanctions against Myanmar and other countries may cause the US to lose 2.3 billion potential customers and $790 billion in exports. In addition to the Helms-Burton Act, which targets countries that do business with Cuba, countries may be sanctioned for causes including human rights violations, nuclear proliferation, terrorism and narcotics traffic., New U.S. federal restrictions on doing business with Myanmar have moved the debate about U.S. unilateral economic sanctions back into the Washington spotlight. As with many other U.S. unilateral sanctions [...]

Deregulation of electrical utilities is expected to be the major area of legislative concern for the 105th Congress in 1997. Decontrol and restructuring is likely to take several sessions, despite the push for comprehensive legislation on the issue. Other energy policy issues are likely to be dominated by environmental legislation and disagreements over tax related issues such as the foreign tax credit for oil firms., Decontrol of retail electricity markets is the major energy issue facing the U.S. Congress this year, and oil and gas firms are very interested bystanders. The 105th Congress is now [...]

Congress and Pres Clinton raised $545.8 million for federal programs in 1996 by approving the sale of 28 million barrels of oil from the US Strategic Petroleum Reserve (SPR). The sale left the SPR with 564 million barrels, compared to its legal minimum inventory of 530 million barrels. The SPR has four storage caverns in Louisiana and Texas. Petroleum trade groups object to SPR sales, arguing that the government should not be a competitor and should maintain an emergency supply., Now that the U.S. has begun to raid the Strategic Petroleum Reserve, its crude oil piggybank, there may be no stopping the process. For budget reasons last year, Congress and [...]

Oil and gas producers are preparing for a wave of royalty underpayment lawsuits led by the US Minerals Management Service (MMS), state agencies, and private leaseholders. In most cases, the lawsuits allege that producers paid royalties on posted prices that were lower than actual commodity prices. An MMS audit of California producers led to the conclusion that the government had been underpaid by about $440 million between 1980 and 1994., In scores of courtrooms and auditors' offices across the U.S., the oil and gas-industry is under attack for alleged underpayment of royalties. There always have been royalty payment disputes within [...]

The oil and gas industry appears to be suffering neglect during the dull US presidential election campaign of 1996. The two major presidential candidates, Democrat Bill Clinton and Republican Bob Dole, are diametrically opposed on certain issues such as the breakup of the Commerce Dept, which would affect the Dept of Energy, and on accessing the petroleum resources of the Arctic National Wildlife Refuge. The political prospects involving these and other issues remains uncertain., Energy is a forgotten issue in the lackluster 1996 U.S. presidential election campaign. While as recently as last May some U.S. consumers and politicians were incensed about gasoline price increases, [...]

The nonprofit Petroleum Technology Transfer Council (PTTC) serves as a source of technological and management information for independent oil companies, while communicating industry needs to researchers. PTTC, established in 1994, receives $2.2 million of its $3.9 million budget for 1996 from the Department of Energy. The council operates 10 centers that focus on issues in their respective regions. PTTC also offers computer software, online information, a newsletter and workshops., The Washington, D.C., based Petroleum Technology Transfer Council is nearing full operation as it approaches its second birthday. The-non-profit PTTC was established to serve as an information conduit between producers [...]

The increasing importation of oil by the US to meet its energy needs has rekindled worries that too great a reliance on foreign oil could pose a risk to its national security. Advocates of this idea point to the fact that 75% of global oil supplies are concentrated in one of the world's most volatile regions, the Middle East. They suggest that the US further develop its own oil reserves to minimize its reliance on foreign oil. Opponents believe that the development of the oil market into a commodities market has defused the threat posed by the importation of oil to US national security., Imports of crude oil and petroleum products into the U.S. are high and headed higher. Imports last month were about 10.5 million b/d, the largest volume since the mid-1970s. Imports [...]

Now that reformulated gasoline has been successfully introduced into the U.S. market, refiners face even more fuel reformulation challenges. With the peak driving season approaching, the Energy Information Administration has [...]

The Bureau of Land Management (BLM) is considering plans to shift control of its onshore federal oil and gas leases to states and Indian tribes. Delegating inspection and enforcement responsibilities to state and Indian tribes would reduce costs and improve efficiency. The BLM's devolvement considerations include drilling permits, downhole regulations and oversight program implementation., The U.S. Bureau of Land Management plans to begin talks with producing states on how it can delegate to them control over onshore federal oil and gas leases. The move [...]

Nearly 7 years after the massive Exxon Valdez oil spill off Alaska, the U.S. is better prepared than ever to respond to such accidents. Major oil companies have established an [...]

A variety of companies, governmental agencies and trade associations maintain computer databases containing information about the petroleum industry. Such databases can be accessed via the Internet, the World Wide Web and through dial-up bulletin boards. Various Internet and Web sites are evaluated., The Internet and computer bulletin boards are making it easy for oil and gas industry workers to quickly access information. Almost without exception, within the past 2 years major industry [...]

There will be increased pressure to have Congress allow the leasing of the Arctic National Wildlife Refuge (ANWR) for oil exploration and production. Both Congress and Alaskan legislators crave the increased stream of revenues that would arise from such leases, which could potentially garner about $2.6 billion per year. This potential revenue, which would be equally split between Alaska and the federal government, provides one of the strongest arguments for proceeding with lease arrangements. However, environmentalists cite ecological reasons why ANWR should not be leased., The struggle between the U.S. oil industry and environmentalists over drilling on the Arctic National Wildlife Refuge (ANWR) of Northeast Alaska is again headed for a showdown in Washington. Alaskan [...]

The Minerals Management Service (MMS) is committed to simplifying the collection process for oil and gas royalties, but will not be delegating the collection to Indian tribes and producing states as originally proposed. Petroleum companies were strongly opposed to the proposal, which was based on a Wyoming study that claimed that the state could collect royalties for a fraction of the price charged by the federal government., The U.S. Minerals Management Service in a surprise move last week abandoned its controversial proposal to hand over its royalty collection functions to producing states and Indian tribes. The only [...]

The Republican-controlled Congress is reviewing environmental regulations that directly impact petroleum companies. Areas that are receiving regulatory attention include Superfund, wetlands laws, the Clean Water Act and the Endangered Species Act (ESA). A recent Supreme Court decision supporting the way government agencies have interpreted the ESA has provoked legislative moves to provide greater guidance and protection to property owners., Environmental issues have taken center stage in the 104th Congress as Republican legislators and some Democrats attempt to revise U.S. laws and influence future rulemakings. The changes they make to [...]

Canadian refiners expect to spend about $1.3 billion (Canadian) to meet reformulated gasoline standards, which will be determined by the Canadian Council of Ministers of the Environment (CCME). Overcapacity and cheap imports are blamed for diminishing returns for refineries in 1992 and 1993. Both CCME and the Cleaner Fuels and Vehicles Task Force considered regional differences and listened to advice from industry experts in preparing recommendations for reformulated gasoline., Canadian refiners face large investments in the next few years to produce an array of cleaner fuels federal and provincial governments will require. The Canadian Council of Ministers of the [...]

The House is incorporating risk assessment and management in legislation to reauthorize the Natural Gas and Hazardous Liquids Pipeline Safety Act, set to expire Sep 30, 1995. The Senate is more inflexible. It is mulling legislation that would tighten standards for urban-area pipelines. The House bill would allow pipeline operators to establish their own safety programs if the provisions of these match or exceed safety levels mandated by federal regulations., A broad effort is under way in Congress and the U.S. Department of Transportation to make federal pipeline safety rules more reasonable. Legislators, regulators, and pipeliners are seeking a better [...]

The 104th Congress, focusing primarily on the Republican Party's Contract with America, has paid little attention to environmental and energy issues. Some Contract with America provisions would positively impact energy regulation, however. A rundown of energy and environmental measures under consideration in Congress is presented. These measures deal with issues ranging from the export of Alaska North Slope oil to unfunded mandates., The Republican party's takeover of Congress is producing the most interesting U.S. legislative session in many years, but it will be far from the most productive. The 104th Congress bolted [...]

The Department of Energy (DOE) is encouraging petroleum and natural gas production in the United States through several programs, such as funding for research and development (r&d). The department's budget for r&d programs has increased over 46% during FY 1993 through 1995. Also, the DOE is helping independent producers remain competitive by allowing them to use computers at national laboratories for geological data. DOE's r&d programs are supervised by the Deputy Assistant Secretary for Gas and Petroleum Technology Reginal Spiller., The U.S. Department of Energy is more involved than ever before in promoting projects to help domestic operators produce oil and gas. In recent years, DOE's oil and gas research [...]

International government chartered banks are playing an increasingly prominent role in lending for world oil and gas development projects. The main players are the World Bank's International Finance Corp. (IFC), [...]

The President, during his two years in office, has earned more negative points than positive ones from the petroleum industry. The petroleum industry was disappointed in President Clinton when he introduced a 60 cent/BTU tax on oil to help reduce the national debt. The industry was also disappointed at President Clinton's environmental policies, but they could have been worse. The industry is pleased at President Clinton's push to get the North American Free Trade Initiative passed and is grateful for his voluntary climate action plan that did not raise fuel economy standards and did not place a carbon tax on carbon dioxide emissions., After Bill Clinton's election as president nearly 2 years ago, the U.S. oiI industry had few positive and many negative expectations about his administration. Although Clinton was expected to promote [...]

The petroleum industry is keeping a close watch on the approaching deadline for compliance with tough new U.S. rules on fiscal liability for oil spills. Interim final rules scheduled to [...]

The US offshore petroleum industry yielded more than $1.24 trillion by the end of 1992. However, decisions about future development may be based more on environmental than on financial considerations. The National Ocean Industries Assn (NOIA) seeks to replace emotional issues like possible oil spills with cost-benefit analysis to determine whether the outer continental shelf should be explored for oil and gas. The US offshore drilling policy is analyzed by industry experts including James C. Day, CEO of Noble Drilling Corp and chairman of NOIA., Washington's offshore petroleum policy is a clumsy combination of fact and fiction many say is wringing the life from U.S. activity in federal waters. On the fact side of the [...]

Gas gathering and pipeline companies are supporting Federal Energy Regulatory Commission (FERC) plans to lift rate controls. The companies claim that their ability to compete is hampered by such controls. However, gas producers want the controls maintained, even though 28% of the gas gatherers are already free from control or only lightly controlled. FERC commissioners are considering market-based regulatory measures., Over objections of producers, the Federal Energy Regulatory Commission appears ready to decontrol, at least partially, the gathering activities of U.S. interstate gas pipelines. Those lines and their affiliate gathering [...]

The deregulation of interstate gas pipelines under Order 636 is proceeding well, but doubts remain over some aspects of the legislation. Some companies are appealing the implementation of Order 636 in federal court, but most will be ready when the order becomes effective on Nov 1 1993. Pipeline companies are concerned that deliveries could be interrupted during times of high demand under the new system, and only experience will show if such fears are well grounded., There is no turning back for U.S. interstate gas pipelines preparing to begin operations this winter in a gas market set loose by federal mandate. Most interstate pipelines are well [...]

A transportation fuels tax increase of 4.3 cents/gallon has been agreed upon by key Senate Democrats on the finance committee. The agreement on the deficit reduction package means that the budget compromise will pass committee vote, with all nine Republicans expected to vote against the bill. Senator John Breaux's 7.3 cent/gallon gasoline tax proposal was used as the starting point for the transportation fuels plan. The gasoline tax is expected to raise $25 billion in revenue., Key Senate Democrats have agreed on a federal deficit reduction package that calls for a 4.3/gal transportation fuels tax increase along with deeper spending cuts. The fuels tax would apply [...]

A low supply/demand ratio is raising natural gas spot and futures prices. But a demand shortfall could abort the gas industry's recovery. Demand in 1993 is projected at 20 tcf, but surplus capacity at the beginning of 1993 was only 5.2-6.3 bcfd, partly because of an unusually cold winter. Capacity utilization was 90%. If supplies are not restored by Nov 1, when Order 636 is fully instituted, there will be local shortages., A tighter fit between supply and demand in U.S. gas markets is boosting spot market and futures contract prices to unexpected levels, sustaining a year long rally. Market balance and [...]

The Clinton administration's proposed Btu tax could raise $71.4 billion over five years to help reduce the budget deficit. However, the petroleum, coal and natural gas industry are unhappy with the tax plan because it will cost jobs, hurt the economy and decrease domestic energy production. The Clinton administration has revised its Btu tax numerous times and the proposal now contains a number of exemptions. Some of the exemptions include those for exported fuels and electricity, nonfuel or feedstock uses of fossil fuels and coal seam methane from operating mines., The Clinton administration has changed its U.S. energy tax proposal to remove some objections voiced by industry and consumers. The new plan is designed to raise $71.4 billion during 5 [...]

The Clinton administration has announced that its broad directions in energy policy are greater use of natural gas, greater emphasis on conservation and energy use reduction, and a greater emphasis on environmental protection. However, it is not clear exactly which methods the administration will use to achieve these goals. For example, the administration has considered some form of energy tax, but whether the tax will be a gasoline tax, an oil import fee or a broad tax on all carbon-based fuels is still under debate., Now that Bill Clinton has taken office as U.S. president, he must cross the chasm between his promises for change and fulfillment of those promises. There's not much doubt about [...]

The Environmental Protection Agency's latest Clean Watersheds Needs survey has projected a shortfall of S298.1 billion over the next 20 years for clean water infrastructure, up 17% from the previous [...]

Section 29 of the Natural Gas Policy Act of 1978 has been a boon for drillers of tight sands gas. The tax credit has allowed them to tap resources that would normally be uneconomic. 60% of the rigs drilling for gas during the production upsurge of 2nd qtr 1992 were dedicated to tight sands or coal seams. Most companies active in the business say they will cut back operations when the credit expires in December. Support for renewal is mixed., A U.S. federal tax credit for drilling wells in tight gas sands formations has contributed significantly to U.S. exploration and development activity. The credit, due to expire for new wells [...]

Agip SpA, the Italian petroleum concern, is forging ahead with exploration at a time when other companies are guarding their resources. The company plans to spend $3 billion on exploration in 1992, 8% more than in 1991. However, Agip is spending its money carefully, looking for prospects that will allow it to achieve a 16% to 18% return on investment. Projects planned for 1992 include operations in Kazakhstan, Western Africa, Egypt and the United Kingdom., Despite the sluggish world oil market, Italy's Agip SpA is stepping up its worldwide exploration efforts. Raffaele Santoro, chairman of the national oil company, said Agip takes a contrarian view [...]

It is possible that the House and Senate will reconcile elements of their separate energy bills and produce compromise legislation before Congress adjourns in October. A presidential veto does not appear imminent. Aside from alternative minimum tax relief in the House bill, the final bill will contain little to stimulate domestic oil production. It restricts drilling in coastal waters and in the Arctic National Wildlife Refuge while, paradoxically, encouraging less reliance on foreign fuel sources and greater reliance on natural gas and alternative fuels., Congress is likely to pass broad energy legislation this fall that paradoxically seeks to reduce U.S. dependence on oil imports without increasing domestic oil production. The House of Representatives approved [...]

The global warming treaty that will be ratified at the Earth Summit in Rio de Janeiro is proof that legislative solutions to the problem will be watered down, at least over the short run. The biggest problem is lack of cooperation from the US, which stopped short of endorsing any agreement that would impose a timetable for carbon dioxide emissions reductions. It is unlikely US legislative action will come in the form of a carbon tax. Instead, the Bush adminstration is advocating a band-aid approach that involves promoting energy efficiency, afforestation and methane capture from landfills., Global warming may or may not be a legitimate environmental threat, but Washington lobbyists consider it a legislative threat. It does not appear the current Congress will limit or tax [...]

US petroleum refiners must spend billions of dollars to comply with Environmental Protection regulations and the Clean Air Act Amendments of 1990. Salmon Brothers estimates that, during 1992 to 2002, refiners' outlays will total between $25 to 45 billion. Ashland Oil Inc estimates that refiners, between 1992 and the year 2000, will spend $41 billion. This massive capital outlay jeopardizes the continued operation of small refiners and the future profitability of large refiners., Environmental regulations are dogging nearly every aspect of U.S. refining operations, threatening the existence of small plants and the future profitability of larger ones. The industry is beset by government [...]

The Federal Energy Regulatory Commission (FERC) is planning to restructure the natural gas pipeline industry with the passage of new regulations. The FERC proposes to split gas pipelines' marketing role into clear divisions with differentiated rates to allow for cost comparisons. It also plans to change the procedures in granting construction permits and environmental certifications, and proposes the creation of a negotiated ratemaking regulation. The industry has misgivings about the effect of the new rules on pipeline construction., The Federal Energy Regulatory Commission plans to complete its compaign to restructure the U.S. natural gas industry with two key rulemakings in the next few months. The agency has been [...]

The U.S. energy agenda for 1992 consists mainly of one bill in Congress, and it may be too large for Congress to swallow. Inspired by the Bush administration's program to [...]

A struggle to obtain a permit to drill a wildcat off North Carolina is setting precedents for the U.S. petroleum industry, Minerals Management Service, and state governments. For 3 years, [...]

The Federal Energy Regulatory Commission expects to decide several key U.S. natural gas policy issues this year, absent much of the controversy over its actions in recent years designed to [...]

With the Middle East war essentially over, Congress can turn a great deal more attention to forging sweeping changes in U.S. energy policy. President Bush recently released his administration's National [...]

Associated Press articles about trace levels of pharmaceuticals found in drinking water sparked controversy in Washington during March. AP reported that tests of treated drinking water supplies for 24 major [...]

Under fire, FERC seeks to speed pipeline permitting The Federal Energy Regulatory Commission is coming under increasing pressure to streamline its certification process for new gas pipeline projects. FERC is [...]

Patrick Crow Washington Editor The federal government, largest landowner in the U.S., in the past decade has been increasingly unwilling to lease its lands for oil and gas exploration. Congress [...]

Environmental concern outweighs action on energy in Congress U.S. environmental issues will continue to outweigh energy concerns in this session of Congress. And the environmental issue with the top priority [...]

Washington to determine OCS lease sale schedule The U.S. government will make critical decisions on the future of Outer Continental Shelf leasing this year. And it will do so in [...]

U.S. drinking water and wastewater construction contractors are unguardedly optimistic about their business prospects in the foreseeable future. The constructors expect some new construction but also foresee a steady flow [...]

Local public works officials and federal bureaucrats often find themselves partners and adversaries at the same time. Although they serve the same citizens in the long run, they frequently have [...]

The American Water Works Association (AWWA) said its preliminary assessment is that Hurricane Katrina caused more than $2.25 billion in damages to public drinking water infrastructure. AWWA sent its report [...]

In August, President George W. Bush signed a broad energy bill, which to the satisfaction of civic and water groups, did not contain legal protections for makers of the gasoline [...]