By A-J Editorial Board
The full article is here-> http://lubbockonline.com/filed-online/2016-04-28/our-view-limiting-oil-imports-would-help-protect-american-producers#.Vyf6UPkrLIU
“When the price of oil drops, so does the cost of gasoline. But while people are enjoying paying lower prices at gasoline pumps, plunges in oil prices can cause economic damage in Texas.
And it can put American oil producers out of business when the price of foreign oil imports gets cheaper than the costs of extracting oil from the ground in the U.S.
Oil producers in the Panhandle recently announced the Panhandle Import Reduction Initiative. Their hope is to limit the amount of oil that can be imported from other countries.
We wish them success in getting sympathetic ears to hear their initiative and gathering like-minded people to help further it.
They are right that a limitation should be set on the amount of oil imports from the Organization of Petroleum Exporting Countries.
Representatives of OPEC’s 18 nations recently met in Doha, Qatar. Among their topics of discussion was whether to freeze oil production levels.
The nations didn’t reach an agreement on the subject.
“OPEC and Russia and various countries met and decided they weren’t going to freeze oil and, in fact, OPEC said they will increase production again. This will drive the price down to $26 (a barrel) again,” said oil producer Tom Cambridge.”
Apr. 19, 2016 6:40 PM EDT
ALBUQUERQUE, N.M. (AP) — Oil drilling companies and royalty owners from the Texas Panhandle to New Mexico’s stretch of the Permian Basin are embarking on a grass-roots campaign to limit foreign oil imports, salvaging what they say is a major sector of the U.S. economy.
“American oil is competing against a cartel of government operators which has a stated initiative of driving an American industry out of business,” said Tom Cambridge, one of the Panhandle producers leading the campaign.
The grass-roots movement is pushing for the next president of the United States to issue a proclamation setting quotas for imports — something that hasn’t been done in more than four decades.
“It’s not that this is the first time but this is a more concerted, deliberate effort and I think it’s gaining ground,” said John Yates Jr., a member of a well-known family that is a leader in the industry and has over the last century developed some of New Mexico’s largest and most significant oilfields. The complete article is here-> http://www.bigstory.ap.org/article/74b8fac6517649d7a0ecac7fa55951ad/texas-new-mexico-oil-producers-push-import-limits
The complete article is here-> http://www.daily-times.com/story/money/industries/oil-gas/2016/03/05/energy-policy-expert-says-oil-slump-bust/81289608/
That’s the verdict from Daniel Fine, one of Gov. Susana Martinez’s senior advisers on energy policy. The U.S. oil and gas industry — and the San Juan Basin — is in a “bust” period, Fine said Tuesday at an inter-tribal energy conference at San Juan College’s School of Energy.
“This is what a bust is. You lose the workforce,” said Fine, who is associate director at New Mexico Center for Energy Policy at New Mexico Tech. “Loss to the country and to the Southwest will be the workforce. It will be decimated at levels of less than $30 a barrel (of crude oil).”
And 2015 was a year of layoffs and cutbacks.
Since the collapse of oil prices on the commodities market in fall of 2014, the number of workers laid off from local oil and gas companies — from the large corporations to the smaller independents — has been in the thousands.
“We’re in a ‘bust.’ So be ahead of the curve, and think ahead in this business by at least six months,” Fine told the Native American and non-tribal energy leaders and business people in the Merrion conference room at the new $15.8 million school.
He said looming federal regulations such as the the U.S. Bureau of Land Management’s proposed Onshore Oil and Gas Orders Nos. 3, 4 and 5 along with proposed updates to its rule aimed at reducing “fugitive” atmospheric methane from oil and gas operations were doubling the pain already caused by low crude oil prices. He said that a third of all U.S. oil and gas producers — especially those burdened with debt — will inevitably go bankrupt.
But Fine’s sobering analysis wasn’t without one ray of hope for the industry.”
For the complete article use this link–> http://www.daily-times.com/farmington-opinion/ci_28613365/column-international-production-means-oil-prices-likely-remain “The price of West Texas Crude oil has declined below $50 per barrel as a reaction to the expectation that oil export sanctions against Iran will be lifted within the framework of the multi-nation “deal” to slow the country’s progress toward developing nuclear weapons. The global market is oversupplied and Saudi Arabian production is approaching its highest level since the 1970s.
San Juan and Delaware basin oil producers have sharply reduced costs through efficiencies. American higher-cost production shows no sign of a decline while OPEC lower-cost production increases in spite of lower prices. Saudi Arabia has decided to fight the Americans for market share.
The outlook for Iraq places still more production in the global market. Iraq production, now at 4 million barrels per day and rising, could reach 6 million in two years. The Iranian Oil Company could attract BP and Total to invest capital and technology if sanctions permit. This would drive Iranian production to equal Iraq. In the short-term Iran has the capability of expanding exports by 1.2 million barrels.
Should the “deal” fail or be changed by Congress to a phase-in of Iranian oil exports over a longer period of time and the White House goes along, the price of oil should recover to $60 per barrel. This is a long-shot scenario, however.
There will be more Middle East production for export than anticipated and its impact on American shale oil production will be a three-year, low-price oil regime. On the other hand, the current price war is moving quietly to an old variable. From 2009 to early last year, Saudi Arabia and the Gulf States assumed that American shale technology (horizontal drilling and hydraulic fracturing) was unsustainable. They changed course last year and resorted to the price war for market share.
The reason for this change in strategy was first, the decline ratio of shale horizontal wells; and second, the regulatory obstacles. Simply put, OPEC perceived the environmental/global warming/climate change political group mobilization as capable of winning tighter federal regulations that would cause higher costs to the oil industry stopping the “technology play.”
OPEC now regards the appearance of new methane rules as a revival of its earlier “unsustainable” scenario. Methane mitigation regulations can setback natural gas production but also the associated gas from oil production. San Juan Basin oil producing formations are heavy in associated gas. If methane emissions, leaks or flaring persist, OPEC calculates, it will cause regulatory intervention as part of the new International Treaty on Global Warming.”