Author: GTD Group (Page 4 of 23)

Question: As US Senator Mary Landrieu, D-LA., recently became the chair of the US Senate’s Energy and Natural Resources Committee do you expect her to be an effective chair of the committee?

Answer: Senator Landrieu has a history of knowledge and understanding of energy and environmental issues confronting the energy industry. She has been a strong advocate of the energy industry.

Question: The State of Alaska is moving forward with a plan for a $50 billion “All-Alaskan Gas Pipeline” (AAGP). What is the status of this project?

Answer: The project will take “stranded gas” from the North Slope to the Kenai Peninsula to a LNG (Liquefied Natural Gas) facility. From the facility/port LNG will be exported to Asian markets. The project is estimated to take six year to construct.

Question: In January of this year, there was the alert that there was the threat of a power outage in Texas, is this true?

Answer: Yes, this past January, a warning went out that it was important that reduction of electric usage was needed. The risk of power outages was strongly possible. According to an article by Loren Steffy, “in January, power plants unexpectedly went offline when the state needed them most. This time blackouts were averted, but barely”. He goes on to state “as the threat of rolling blackouts in winter and summer demonstrates, Texas isn’t producing enough electricity to meet our needs.”

Question: Is OPEC (Organization of Petroleum Exporting Countries) still a threat?

Answer: OPEC is not as strong a threat as in the past. As Daniel Yergin stated in an article in the Wall Street Journal, October 15, 2013, “the real lesson of the shock of 1973 and the second oil shock set off by the overthrow of Iran’s Shah in 1979 is that they provided incentives—and imperatives—to develop new resources…Imports reached 60% of domestic consumption in 2005, but they are now down to 35%…As the US imports less oil it also produces more to the benefit of energy security.”

Question: What are Intangible Drilling and Development Costs (IDC)?

Answer: They are costs incurred in preparing well locations, drilling and deepening wells, and preparing wells for initial production up through the point of installing control valves. None of these functions, because of their nature, have salvage value. Such costs would include labor, transportation, consumable supplies, drilling tool rentals, site clearance and similar costs.

Question: Why is there the use of hydraulic fracturing?

Answer:
1) To increase productivity (the volume of oil or gas produced from the well),

2) In terms of shale formations, it is perhaps the only way to complete a commercial well, and

3) to enhance the cumulative reserves ultimately recovered from the well.

Together we can Create the People’s Energy Plan! Go to www.peoplesenergyplan.com to join the effort.

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The International Society of The Energy Advocates, “The Energy Advocates”, www.energyadvocates.org was founded in 1974, forty years ago this spring, by a group of American oil executives in response to the 1973-74 oil embargo. The mission of The Energy Advocates is to inform the general public about our vital energy industry and energy policy issues. Since 1974 members of The Energy Advocates have spoken in all fifty states and appeared on television, radio, and in newspapers and magazines on behalf of the energy industry. The organization believes that it is critical for those of us in the energy industry to rise to the challenge and make a difference when it comes to energy issues. I had the honor of serving as president of Tulsa-based organization from 2003 to 2009 and have been a member for twenty years of its forty years history.

The goal of The Energy Advocates is to raise awareness and change the public’s perception of the energy industry. For too long many have painted a misleading and false picture of the energy business. The Energy Advocates continually educates the public while improving the industry’s image through forums, community involvement, speeches, seminars, media coverage, annual energy conferences, and resources on its website.

The Energy Advocates believe in the basic principle that “nothing moves without energy.” Therefore, education begins by recognizing that energy is a basic requirement of life. Our quality of life is dependent upon the development of all forms of energy, as well as the conservation of our natural resources. The facts are clear: energy production and consumption work in concert with the environment. The organization is passionate about presenting the public with facts and solutions to tough questions on the energy issues that face the United
States, including those related to our environment.

In 2012, for example, The Energy Advocates took the message to communities throughout the United States. We wanted to learn what was on people’s minds. From a national perspective, it should be-creating the People’s Energy Plan.

The challenge is for citizens, the industry, media, and others to maintain a continuing dialogue so that an energy policy of the people, by the people, and for the people can be implemented. And that implementation needs to take place, now, not to be put off to another time.

Another objective of The Energy Advocates is keeping the membership and general public informed of the changing legislative, environmental, and economic issues that impact the energy industry. As global demands for energy from natural resources respond to social, economic, and environmental factors, it is important to continue to inform and enlighten the public about the need for a vibrant energy industry.

Together we can Create the People’s Energy Plan! Go to www.peoplesenergyplan.com to join the effort.

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As the information presented in my book, “America Needs America’s Energy: Creating Together the People’s Energy Plan” makes it clear, America’s energy industry has an infrastructure that must be updated, and increasing numbers of drilling permits could create thousands of jobs and add billions of dollars to the US gross domestic product. These permit increases would add revenue to state and federal budgets and in the end reduce spending on foreign oil by $15 billion. To accomplish these goals, though, requires money. It will take an accommodation of both the public and the private sectors to come together for the solutions, so we definitely have to have the marriage of both, but also a policy in place. We must set the agenda for energy, starting today.

US Senator Richard S. Lugar stated it best: “Good policy emerges from serious debate, informed by the facts. Today, we need bold new approaches for forging bipartisan coalitions.”

A December, 2011 editorial in The Oklahoman stated, “The default setting for a national energy policy in this country is inertia. We don’t do much to advance a policy to promote great independence. We actually do some things to promote great reliance on foreign supplies. But mostly we sit around and talk about the need for a comprehensive energy plan. While we’re talking, the supply is walking and it’s moving west, from the Middle East to America. Decreasing foreign oil dependence is happening by default and it’s happening because of technology and free enterprise and despite US government policy and interference.”

The important point of the editorial is critical. Because of the recent increase in production in the US, there are strong rumblings that the government may start taxing oil and gas companies on the exploration and production sides of it. So now we are in a position where we find this wondrous new discovery but faced with new taxes and regulations to burden the oil and gas industry. Since the US oil and gas industry has been on route to find the equivalent of Saudi Arabian oil, the US needs to make certain we have the right incentives in place.

Bottom-line, a strong energy industry means more jobs and a more secure economy. Thirty-seven years ago, I began a journey in the energy industry. Hopefully we will leave a great energy industry in place for future generations. It is up to us!

Creating Together the People’s Energy Plan includes the US becoming less dependent on foreign oil, protecting the environment, striving for energy efficiency and making plans to share our expertise with world in order that other countries and its people can have the needed energy.

It is time we come together: The US has the immediate challenge of striving for energy independence but also, global energy security for others. It is extremely important that the US be in a strong position of securing energy reserves within its own boundaries. Therefore, we need a plan. The US needs energy security. The Global Economic Reality: America Needs America’s Energy, And the World needs America’s Know-How!

Together we can create the People’s Energy Plan! Go to www.peoplesenergyplan.com to join the effort.

Facebook: America Needs America’s Energy with over 10,000 supporters plus and growing. — America Needs America’s Energy: Creating Together the People’s Energy Plan!

At the 2009 International Energy Policy Conference, www.energypolicyconference.com, one of our featured speakers was Mary Eisenhower, CEO/President of People to People International, (PTPI) www.ptpi.org. As chairman of the board of directors at that time of worldwide operations, I stated at the end of her remarks that it was a personal goal of mine, at some point, to begin an initiative to support energy for the world.

There are so many children and families throughout the world that do not have access to energy as we have in the US. There are reportedly 3.5 billion people that need proper access to energy resources and there are millions that die each year that don’t have needed energy. I believed then as I do now that it should be a concerted effort to provide energy for the world.

According to ExxonMobil’s forecasting, there will be 2 billion more people on the planet and a 130% larger economy by the year 2040. Therefore, the energy needs will increase.

Food, water and energy are very essential around the globe. Air-conditioning, heating, refrigeration for food, medicine and blood supplies are needed throughout the world.

A child, in his or her learning years, needs energy sources which provide adequate access to electricity for proper lighting in order to read. Energy access should be attainable globally. Unfortunately, energy access is not available to everyone.

The average American uses five times more energy than the average global citizen. One study specifically links improvement in life expectancy, educational attainment and per capita income to energy use.

On a People to People International/Operation International Children mission to Haiti in 2011, I met with representatives from the U. S. Embassy who provided me disturbing statistics about Haiti, statistics within our Hemisphere: 70% of the population was unemployed, 70% were illiterate, life expectancy for men was 29 and for women, age 30. And a major concern was the lack of an energy infrastructure which could dramatically change these statistics in a positive way.

America Needs America’s Energy has been my theme and continues my theme along with the last part of the theme, Creating Together the People’s Energy Plan. America Needs America’s Energy: Creating Together the People’s Energy Plan include the factors that the US becomes less dependent on foreign oil, protection of the environment be maintained, striving for energy efficiency be an ultimate goal and that plans to share our expertise with world in order that other countries and its people can have the needed energy be implemented.

It is time we come together: The US has the immediate challenge of striving for energy independence but also, global energy security for others. It is extremely important that the US be in a strong position of securing energy reserves within its own boundaries. Therefore, we need a plan. The US needs energy security. The Global Economic Reality: America Needs America’s Energy, And the World needs America’s Know-How!

Together we can create the People’s Energy Plan! Go to www.peoplesenergyplan.com to join the effort.

Facebook: America Needs America’s Energy with over 10,000 supporters plus and growing. — America Needs America’s Energy: Creating Together the People’s Energy Plan!

In the late 90s, I was asked to assist the country of Bulgaria in their oil and gas development. Leading the effort was Dr. Boyko Nitzov, a Bulgarian, who was then working at the University of Oklahoma along with Dr. Dennis O’Brien then the University’s Director for the Institute for Energy, Economics and Policy at Sarkey’s Energy Center.

Dr. Dennis O’Brien and Dr. Boyko Nitzov were providing major studies of oil and gas in Kazakhstan, executive management training for international delegations from Central Asia and Eastern Europe and in Bulgaria for the US Trade and Development Agency. Dr. O’Brien had been instrumental throughout the years of assisting me with the International Energy Policy Conference. He introduced several high profile energy leaders to the conference including the CEO/President of Phillips Petroleum and the Chairman/President of PDVSA.

Dr. O’Brien held several distinguished positions throughout his career including the chief economist of Caltex Petroleum Corporation, managing director of Petroad, which assisted clients in developing and implementing strategic business visions and planning for the global energy industry, and served as deputy assistant secretary for International Energy Security for the US Department of Energy. He passed away in 2005 and is greatly missed.

Dr. Nitzov was highly respected among his fellow Bulgarians especially with the Bulgarian government and the country’s oil and gas sector. He has served as Director of the Eurasian Energy Program, Atlantic Council in Brussels, Belgium.

What concerned Bulgaria and Eastern Europe at the time was the great dependency on Russia’s natural gas and energy support. Our goal was to evaluate how we could assist Bulgaria in becoming more self-reliant.

During my trips to Bulgaria along with Dr. Nitzov, we found that the Bulgarian oil and gas sector was not being managed at full potential. The infrastructure needed upgrading, the management needed up-to-date technological training, research and development was at a minimum and US know-how and support was a high priority greatly needed. One of the successes the team was able to assist with successfully was with the development of an underground gas storage facility in Bulgaria.

We identified fields onshore that had not reached their full development. Also, we identified potential offshore locations on the Black Sea. If our research could have factored in the application of today’s science of combination of horizontal drilling and hydraulic fracturing, there is no doubt in my mind, that Bulgaria’s resource development would be greatly enhanced.

Now we fast forward to 2014, as the Wall Street Journal recently addressed, “there is a strategic case for more U. S. natural gas exports to Europe, as well as for more investment in projects…which would bring gas from the Caspian Sea to Europe without going through Russia.”

Leaders from Eastern Europe go on to state “natural gas would be much welcome in Central and Eastern Europe, and Congressional action to expedite exports (liquefied natural gas) to America’s allies would come at a critically important time for the region”.

The US has an abundance of natural gas. Russia is aggressively working to maintain Eastern European dependency on its resources including natural gas.

It is time we come together: The U.S. has the immediate challenge of striving for energy independence but also, global energy security for others. It is extremely important that the US be in a strong position of securing energy reserves within its own boundaries. Therefore, we need a plan. The US needs energy security. The Global Economic Reality: America Needs America’s Energy and the World Needs America’s Know-How!

Together we can create the People’s Energy Plan! Go to www.peoplesenergyplan.com to join the effort.

Facebook: America Needs America’s Energy with over 10,000 supporters plus and growing. — America Needs America’s Energy: Creating Together the People’s Energy Plan!

Natural Gas is now front and center in the future of US energy. Over the last few years, shale gas has become a major topic of discussion in the media, for several reasons. Until recent years, natural gas was primarily produced from “conventional” reservoirs via vertical technology.

“Unconventional” natural gas production includes hydraulic fracturing and shale formations where natural gas is trapped. Due to technological advancements, shale formations have been discovered in numerous basins throughout America.

Natural gas is an energy answer that is available today and can be efficiently used in both the power generation and transportation sectors. We should definitely be putting it to use now.

For years I have voiced my belief that natural gas reserves are critical to a strong US economy and extremely important for America’s energy security. Natural gas is an abundant, clean fuel that has many domestic uses—from heating our homes to serving as an alternative to gasoline. It is the bridge fuel to our country’s energy sustainability.

The US is now embracing the growing use of natural gas. EIA (Energy Information Administration) projects that natural gas will account for nearly two-thirds of new capacity additions to the US power generation fleet through 2040 and the EIA projects that natural gas will be 28 percent of the US electricity mix through 2040.

The American Chemistry Council projects there will be as many as 1 million more US manufacturing jobs by 2025 due in great part to shale gas production.

The Tennessee Valley Authority which is the largest public power utility in America has 9 million customers in seven states. Over the past two years, the increase of the natural gas in the fuel mix of TVA went from between 3 and 5 percent to 20 percent, a dramatic increase.

It is hard to believe that in the 80s, the US passed laws that prohibited the construction of adding more electrical generating plants that used natural gas as primary fuel. Today, we see a new energy horizon. No doubt that natural gas will lead the way and will be very significant in the years ahead.

It is time we come together: The U.S. has the immediate challenge of striving for energy independence. It is extremely important that the U.S. be in a strong position of securing energy reserves within its own boundaries. Therefore, we need a plan. The U.S. needs energy security. America Needs America’s Energy!

Together we can create the People’s Energy Plan! Go to www.peoplesenergyplan.com to join the effort.

Facebook: America Needs America’s Energy with over 10,000 supporters plus and growing. — America Needs America’s Energy: Creating Together the People’s Energy Plan!