OVERVIEW: A report filed with the US Department of the Interior recommended that terms governing the leasing of federal land for oil and gas development be updated to reflect social costs associated with such development. While such costs may be policy relevant, I suggest social costs are smaller than the report indicates and the recommended policy … More Social costs of oil and gas leasing on federal lands, carefully considered
If the oil market is reasonably efficient, then the price of a barrel of oil should reflect something like the cost of production of the highest-cost barrel of oil needed to just satisfy demand. In other words, the market price of oil should reflect the marginal cost of production. The price of oil on the world … More How can the market price of oil fall so far so fast?
Michael Giberson In dry Texas, water use has been one of the bigger of the policy complaints tossed into the policy whirlwind surrounding hydraulic fracturing. A number of water quantity related bills are currently circulating in the Texas legislature and the Texas Railroad Commission (which regulated oil and gas drilling in the state) has considered … More Should governments raise the cost of water used in fracking?
Michael Giberson A few days ago Shawn Regan and I had an op-ed that appeared in the Denver Post‘s Idea Log online section, “Promoting cooperation instead of conflict on public lands.” We begin: Energy and the environment are often at odds. As America’s energy production reaches record levels, controversies over the environmental impacts of energy … More Promoting cooperation instead of conflict on public lands
Michael Giberson The Eagle Ford shale in South Texas is the most profitable oil field in the world says Michael Yeager of BHP Billiton Petroleum. “Eagle Ford wells cost $7 million to $10 million, but Yeager said they pay back within half a year.” More at the link.
Michael Giberson Earlier this week the International Energy Agency released their annual World Energy Outlook, and new is a forecast that the United States would surpass Russian and Saudi Arabia to once-again become the world’s largest oil producer, sometime around 2020. The news set off a wave of happy press, i.e. the Wall Street Journal, … More Before getting too excited about the IEA’s forecast of US oil production leadership…
Michael Giberson A brief mention, for those of you keeping track of Giberson media appearances at home, of a brief appearance in a brief story on natural gas supply issues on last Friday’s Marketplace radio news program. As the story says, natural gas industry expectations were rewritten in the last decade. (But of course you … More Natural gas “expectations were rewritten in the last decade”