Control freaks threaten oil, gas producers

Barry Russell:

There’s an old saying among America's smaller, independent natural gas and oil producers -- sometimes called "wildcatters" -- that the best way to end up with a million dollars is to start off with a billion.

But while booms and busts, dry holes and even drier ones have always been a part of life for independent producers, state treasuries and everyday American taxpayers may soon find it applies to them as well.

Thanks to an effort gaining traction in the corridors of power in Washington, an old slate of federal laws and regulations may soon be tweaked and twisted in ways that extend their authority over state and local oil and gas operations across the country.

The upshot? New regulations that could result in millions of lost jobs, hundreds of millions in lost royalties and state tax revenue, and a major step back on our road to energy independence.

Such are the findings of a new analysis released this week, written by leading experts in the field and commissioned by America’s oil and gas producers. According to the report – just one in a series of studies known collectively as Project BRIEF (Bringing Real Information on Energy Forward) – DC’s attempt to transfer regulatory authority from the states to EPA could result in lost U.S. oil production of 183,000 barrels a day.

That’s in the first year alone. The impact would be no less severe for natural gas – stranding 245 billion cubic feet a year that would’ve otherwise been found, produced and delivered to the American people.

All told, a staggering 57 percent of producing onshore oil wells in the U.S. could be shut in if some interest groups and lawmakers in Washington have their way, along with 35 percent of producing onshore natural gas wells.

...

This is an example of the anti energy policies of the Democrats in Washington. Their war against energy and energy producing states like Texas and Alaska is becoming more obvious. This will result in lowering everyones standard of living.