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President Obama

*UPDATE* Shale Delivers for Middle (and Middle-Class) America
In the ongoing conversation over America’s abundance of natural gas, one thing is becoming very clear: The continued development of our nation’s oil and natural gas resources is helping advance our economy where it matters most – in the pocketbooks of middle class Americans.

johnkrohnJD
Communications Director

 

UPDATE (5/03/2013; 9:43 A.M. ET):The Atlantic and Business Insider filed reports this week that make abundantly clear the profound economic impacts oil and natural gas development provides to middle class Americans. Reporting on the economic advancements in two states that couldn’t be more different – North Dakota and Pennsylvania – the reviews provided a succinct picture of how shale development is not only transforming U.S. energy prospects, but is also dramatically improving the quality of life for the nation’s blue collar workers.

The Atlantic reports the entire economic landscape has changed for many residents in the Peace Garden State:

The Bureau of Labor Statistics recently produced a breakdown of job growth during North Dakota’s oil rush, and it’s pretty remarkable. In counties where oil rigs have sprouted up to drill from the Bakken Shale Formation — a few of which are actually in Montana — employment grew by 35.9 percent from 2007 to 2011, from about 78,000 jobs to more than 105,000. But much as in Texas’s shale country, the impact on local job growth has actually been dwarfed by the impact on local income. Total wages more than doubled from $2.6 billion to $5.4 billion. Average pay jumped by more than half, from $33,040 to $50,553.

Blue-collar men suddenly finding high-paying work in the fields is a big part of the story. But jobs and paychecks have surged across industries.

While this story is compelling, it’s not unique. Business Insider also took a closer look at the economic benefits shale development has provided one formerly rural poor Pennsylvania county. According to reporters who visited the area, “lots of people [are] grateful for the infusion of commerce injected into a local economy that had stagnated.” From Business Insider:

The 35-year-old Susquehanna County, Penn. native was scraping by supplying construction contractors with cut bluestone when the gas industry arrived to his sleepy corner of Pennsylvania in 2009.

Four years later, Diaz now owns seven different companies, including a home furnishings manufacturer and a timber harvester — that bring in $50 million a year and employs 250 people.

By one count, county residents have taken in a total of $300 million in gas royalties.

Jay Agkinson, a lifelong county resident who runs Montrose’s Shell station, said morning fill-ups can sometimes resemble truck meets.

“A lot of people who never had money have money now,” he said.

In countless communities across the country, Americans are seeing their economic prospects transformed for the better thanks to the responsible development of the nation’s shale resources. That’s welcome news for thousands of blue collar Americans, many of whom have seen their incomes and opportunity stagnate and decline in recent years.

—Original post, February 20, 2013—

In the ongoing conversation over America’s abundance of natural gas, one thing is becoming very clear: The continued development of our nation’s oil and natural gas resources is helping advance our economy where it matters most – in the pocketbooks of middle class Americans.

In fact, a growing body of evidence highlights that oil and natural gas development is a key element in reaching the “North Star” that President Obama recently noted should be the goal of our nation’s economic policies; namely, a growing economy that creates good middle class jobs.

In 2011, the oil and natural gas industry provided $545 billion to the U.S. economy in the form of capital expenditures, wages and dividend payments. This supported nine percent of all new jobs that year, according to the World Economic Forum.

Such growth, in turn, is transforming entire regional economies. Take, for example, the city of Pittsburgh, Pa.  This once reveled blue-collar city was a symbol of U.S. economic strength until the collapse of U.S. steel and manufacturing in the early 1980s. Thereafter, the city struggled to right its course, with only limited success. But now wages are rising, unemployment is falling and many are attributing this growth, at least in part, to a stronger economy supported by Marcellus Shale development.

Kurt Rankin, an economist and assistant vice president at the PNC Financial Services Group, sees Marcellus development as “providing the defining force for Pittsburgh’s local economy,” according to a recent feature by E&E News. Other experts have similarly observed that shale development is boosting wealth, increasing local spending and reversing a “brain drain” that has plagued the region for years.

Rankin has good reason for his optimism, too. Houston, Tex. has seen rapid growth as major energy Companies have relocated to, or increased their presence in, the Space City due to  $120 billion worth of investments in refineries, pipelines and export terminals expected to be constructed along the Gulf Coast.

Similar expansions have been witnessed in smaller U.S. cities like Williamsport, Pa. This medium sized central Pennsylvania city, long known for hosting the Little League World Series, became the 7th fastest growing city in the United States in 2011 thanks to Marcellus Shale development.

Of course, these economic advancements haven’t just accrued in our nation’s metropolitan areas.  In fact, they are most evident in areas where a majority of middle class Americans reside: our nation’s rural and suburban communities. This was noted in a recent USA TODAY story, which found that oil and natural gas development is increasing personal income in small towns across the nation, reversing a decade’s long trend and shifting significant wealth toward areas of the country that can use the boost. Specifically, the USA TODAY analysis noted these areas saw their incomes rise by 3.8 percent, driven by spending in the nation’s oil and gas fields.

But the story doesn’t end there. A San Antonio Express-News review of economic data supported by Eagle Ford Shale development noted that income in LaSalle County, Tex., rose by 31 percent since shale development began.  In fact, the review found that counties hosting Eagle Ford development saw an average increase in per capita income of 13.62 percent between 2008 and 2011. These counties include Atascosa,Bee, DeWitt, Dimmit, Frio, Gonzales, Karnes, La Salle, Live Oak, Maverick, McMullen, Webb, Wilson, and Zavala. For comparison, Texas saw an increase in per capita income of 1.3 percent over that time.

Eagle Ford income rais chart

Eagle Ford Shale development drives personal income growth. source: http://bit.ly/Y75fxh

What’s making this rise possible is a significant increase in good paying jobs being provided by a growing domestic oil and natural gas industry.  A recent independent review found that wages for the mining, oil and natural gas sector increased by 5.8 percent between the last quarters of 2011 and 2012, an amount greater than any 12-month period since 2006. Examining employment data from two states makes this phenomenon very clear. In Pennsylvania, Marcellus Shale development is directly supporting more than 30,000 jobs in the state.  These jobs pay $89,116 per year, which exceeds the average compensation of all other Pennsylvania industries by $41,000 according to state data. According to the 2010 Census, this even exceeds the Keystone State’s average household income of $51,651.

PA Income chart

PA wages comparison. Source: http://bit.ly/WuUVtW

A similar story is taking shape in Ohio, where Utica Shale development began ramping up in 2012.  According to a recent state report, shale development is directly employing nearly 7,300 individuals who are earning an average wage of $74,000 a year. This figure exceeds the wages of all other Ohio industries by approximately $30,000.

What’s making this development even more profound is that at the same time shale development is increasing wages, it’s also decreasing expenses for most Americans. Wholesale electricity prices in the United States have dropped more than 50 percent since 2008 thanks to affordable natural gas supplies made possible by shale development.  Another review by IHS-CERA found that lower natural gas prices are saving every American household an annual average of $926. All of this, and more, led the President to recently declare in the State of the Union, “We produce more natural gas than ever before — and nearly everyone’s energy bill is lower because of it.”

So, as it turns out, the President doesn’t need to look too far to find that North Star he referenced in the State of the Union Address. From providing millions of jobs, to increasing paychecks while decreasing expenses, our ability to develop our nation’s oil and natural gas resources seems to be the compass that is pointing to a stronger middle class.

 

*UPDATE* Natural Gas: Something Both Rs and Ds Can Agree On
With the Republican and the Democratic National Conventions now all wrapped up — and the election only two months away – many Americans across the nation are asking themselves an important question: where we are going and who is best to take us there? And while the two parties may have significant disagreements on a host of issues, the topic of natural gas has proven itself to be a truly bipartisan issue with strong support from both sides of the aisle.

Dana
Staff Geologist

 

UPDATE (4:28 pm ET, 10/26/2012): According to recent analysis by the Manhattan Institute, the presidential candidates’ approach to responsible oil and natural gas development could just make or break election day tallies. Why? Because the economic benefits being delivered by responsible shale development are most noticeable in the swing states. According to the Institute:

“Five electoral ‘swing states’ are among the 12 states that stand to gain the most from policies that would promote the {oil and natural gas} boom. Over a half-million jobs would be generated in Ohio, Pennsylvania, Florida, Michigan, and Colorado. …New employment from hydrocarbons could amount to one-fifth to three-fourths of the jobs needed by people in over 20 states counted as unemployed or underemployed, including Wisconsin, Colorado, Iowa, Ohio, and Pennsylvania. While hydrocarbon jobs can’t be the only answer to the country’s staggering jobs deficit, they represent the largest single opportunity for near-term jobs, and one that requires no federal spending. The broad economic benefits that come from privately-financed expansions in domestic production would generate at least $2 trillion for the country.  Put another way, each hydrocarbon job created brings an average societal benefit of $500,000 per job.”

—Original post from September 7, 2012—

With the Republican and the Democratic National Conventions now all wrapped up — and the election only two months away – many Americans across the nation are asking themselves an important question: where we are going and who is best to take us there? And while the two parties may have significant disagreements on a host of significant issues, the topic of natural gas has proven itself a truly bipartisan issue with strong support from both sides of the aisle.

From President Obama (D), to New York City mayor Mike Bloomberg (I), to Louisiana governor Bobby Jindal (R), America’s leaders recognize the undeniable benefits of this abundant natural resource. Consider:

Both Republican presidential candidate Mitt Romney and Democratic President Barack Obama have highlighted the important role of natural gas within their platforms and speeches:

President Obama: “The development of natural gas will create jobs and power trucks and factories that are cleaner and cheaper, proving that we don’t have to choose between our environment and our economy.” (State of the Union address, 1/24/12)

President Obama: “We’re offering a better path … where we develop a hundred-year supply of natural gas that’s right beneath our feet. If you choose this path, we can cut our oil imports in half by 2020 and support more than 600,000 new jobs in natural gas alone.” (President Barack Obama’s DNC Speech, 9/7/12)

Democratic Platform: “Our dependence on foreign oil is now at a 16-year low, and a new era of cheap, abundant natural gas is helping to bring jobs and industry back to the United States…We can move towards a sustainable energy-independent future if we harness all of America’s great natural resources.” [Link]

Republican candidate Mitt Romney: “Natural gas is the cleanest-burning fossil fuel. Recent discoveries suggest that  the United States may have a 100-year supply beneath our land. Extracting this gas requires “fracking” (hydraulic fracturing, coupled for these purposes with  horizontal drilling), and will also entail significant investments in pipelines and  associated infrastructure to distribute the greater volumes of gas.” [Link]

Republican Platform: “All estimates of America’s oil and natural gas reserves indicate an incredible bounty for the use of many generations to come. At a time when unemployment has been above 8 percent for 42 consecutive months, the longest stretch since the Great Depression, and some 23 million Americans are either unemployed, underemployed, or have given up on finding work, we should be pursuing our oil and gas resources both on and offshore.” [Link]

President Obama’s White House energy adviser Heather Zichal has also touted the administration’s support of natural gas development:

Zichal: “The president has made clear that he believes this important, abundant domestic resource [natural gas] holds unique promise to fuel our energy sector, fuel our vehicles, as well as fuel job growth — all while reducing harmful emissions.” (FuelFix, 5/31/12)

President Bill Clinton’s (D) Former US Energy Secretary Bill Richardson (and former Governor of New Mexico) spoke out in support of natural gas development, urging Governor Andrew Cuomo of New York to move forward with development in the state, noting that natural gas is “the way to go”:

“Natural gas is the future. It is here,” said Richardson, who headed the Energy Department under former President Bill Clinton. … “If there is going to be fracking, it’s got to be done right,” he said. “The governor is approaching this right, doing it with a lot of data,” he said. “Fracking is doable if there’s full disclosure of all chemicals used. Secondly, science dictates the policy rather than politics. Third, there’s collaboration between environmental groups and the natural gas industry.” (New York Post, 12/23/12)

Governor of Colorado John Hickenlooper (D), a former petroleum geologist, has been outspoken about the promise of natural gas—and the proven safety record of hydraulic fracturing:

“Everybody in this room understands that hydraulic fracturing doesn’t connect to the groundwater…It’s almost inconceivable that we would ever contaminate, through the fracking process, the groundwater.”  (Durango Herald, 9/2/11)

Along with Gov. Hickenlooper, Louisiana Gov. Bobby Jindal (R), Oklahoma Gov. Mary Fallin (R) and many other governors have been promoting the development and use of natural gas in the nation’s automotive fleets:

“Natural gas vehicles provide clean, affordable transportation that can increase our nation’s energy security and bolster economic development,” Hickenlooper said in a news release. “We believe there is strong interest in natural gas vehicles and we want to leverage the collective purchasing power of state fleets to jumpstart that market. These meetings will help establish a mutually beneficial partnership between the 13 states on the agreement and the auto companies.” (PR Newswire, 7/16/12)

New York City mayor Michael Bloomberg (I) recently teamed up with and hydraulic fracturing pioneer George Mitchell to discuss the importance of natural gas for the nation and the city of New York:

“The production of shale gas through fracking is the most significant development in the U.S. energy sector in generations, and it affords four major benefits that people on both sides of the debate should welcome.

“First, it’s good for consumers’ pocketbooks by helping to reduce energy costs. … Second, fracking spurs economic growth by bringing industrial jobs back to the United States — jobs that left several years ago when domestic natural-gas supplies were considered scarce and expensive. … Third, fracking reduces U.S. dependence on coal, which is one of the best things we can do to improve air quality and fight climate change. … Finally, done right, today’s more nimble natural gas plants even allow more renewable power to be integrated into the electricity grid than coal does. … We can frack safely if we frack sensibly. That may not make for a great bumper sticker. It does make for good environmental and economic policy.” (Washington Post, 8/23/12; See also: Wall Street Journal, 8/28/12)

Former NY Governor George Pataki (R) has expressed adamant support for the enormous benefits of natural gas, both for the environment and our economy:

“The benefits of these natural gas reserves for our economy would be enormous, even transformational. Domestic natural gas waiting to be unlocked will give us the opportunity to reduce our dependence on foreign oil while making our air cleaner through the use of more natural gas in electric power generation and transportation.

“Then there’s this not-insignificant point: The development of the Marcellus Shale formation means jobs and investment throughout New York. Right now, these jobs are being created directly across the border in Pennsylvania. According to a recent report by the Pennsylvania Labor and Industry Department, from October 2009 through March 2010 a staggering 48,000 new jobs were created by the industry and its related supply chain. (New York Daily News, 12/1/11)

U.S. Sen. Bob Casey (D-PA) highlighted the benefits he has seen in his state as a result of natural gas production:

“U.S. Sen. Bob Casey met with leaders of area companies that provide services to the natural gas industry on Tuesday, and said he walked away from the meeting with a greater sense of the potential and actual economic impact natural gas is having in Northeastern Pennsylvania. “I think if anything, folks in government need to have more conversations more interactions with folks in the private sector on this, because you learn a lot,” Casey, D-Scranton, said.” (Wilkes Barre Times-Leader, 8/22/12)

Environmental Defense Fund President Fred Krupp has outlined his support for natural gas as a clean-burning resource that offers significant benefits over other sources:

Krupp: “Natural gas burns cleaner than coal, emits less in the way of greenhouse gases, and avoids mercury and other pollutants from coal.” (Bloomberg, 11/3/12)

With all of the benefits of natural gas, it’s little wonder why people from all walks of life and all political backgrounds support this clean burning, CO2 reducing, job creating, domestic energy resource.

Shale Boosts U.S. Economy from Coast to Coast
We all know that responsible oil and natural gas production has been an economic boon to regions across the country, and as the Wall Street Journal highlights this week, the economic growth emanating from developing natural gas from shale is not limited solely to those areas lucky enough to have the formations underneath them.

We all know that responsible oil and natural gas production has been an economic boon to regions across the country, from communities throughout Pennsylvania benefiting from Marcellus Shale development to the rapidly expanding housing business in south Texas. And, of course, North Dakota boasts the lowest unemployment rate in the country, thanks in large part to the development of the Bakken Shale.

But the story doesn’t end there. Indeed, as the Wall Street Journal highlights this week, the economic growth emanating from developing natural gas from shale is not limited solely to those areas lucky enough to have the formations underneath them:

The economic benefits of rising energy production are spreading far beyond the traditional oil patch, to Ohio and Pennsylvania, Nebraska and New York, North Carolina and Idaho. Truck drivers from pretty much anywhere can find work related to the surging energy business. Private-equity firms completed $24.8 billion of energy deals of all types last year, up from $8.5 billion in 2010, according to data tracker Preqin. Manufacturing plants are returning to the U.S. to take advantage of cheap natural gas, spurring major investments in petrochemical and steel production in the Gulf Coast and Midwest.

Landowners in huge swaths of the country where shale is found are raking in money for leasing their mineral rights. Consumers throughout the U.S. are paying lower bills for heating and electricity because of cheap natural gas. Even the U.S. balance of payments with other countries is improving because of the new energy economy.

“This is probably the biggest stimulus we have going,” says Michael Lynch, president of Strategic Energy & Economic Research, a consultant based in Amherst, Mass. Some $145 billion will be spent drilling and completing U.S. wells this year, up from $13 billion in 2000, estimates Spears & Associates Inc., an oil-field market research firm.

[...]

The growth in energy exploration and production is due to the widespread use of horizontal drilling and hydraulic fracturing, or fracking. Horizontal drilling allows energy companies to extract gas and oil up to a mile away from the actual well. Meanwhile, fracking—which involves pumping millions of gallons of water, sand and chemicals to break open dense rocks and release hydrocarbons—has enabled the industry to tap into energy-rich shale formations once overlooked by petroleum geologists.

In Nancy County, Nebraska — a largely agricultural county west of Omaha — demand has picked up so much for the area’s sand deposits that a local company has expanded its workforce by nearly ten-fold. As a member of the county board of supervisors described the situation, “This deal here is like winning the lottery.” Similarly, in western Wisconsin, the number of sand mines has increased substantially, creating over 1,000 jobs in just the past four months.

Of course, as the Journal also highlights, areas that have a long history of oil and natural gas development are also reaping significant benefits. (Houston became the first major metropolitan area to regain all of the jobs it lost during the recession, thanks to increased exploration for oil and natural gas in shale.) But these benefits extend beyond job creation and (enormous) economic growth:

Beyond simply adding jobs, communities from Pennsylvania and Ohio to Colorado and Texas that are home to this energy boom are experiencing a new emotion: optimism. Jeff Dahl, chief executive of MTR Gaming Group Inc., which operates a casino and resort in Wheeling, W.Va., says he is seeing consumer confidence rising as landowners get leasing bonuses of thousands of dollars and companies compete for workers.

“People are beginning to believe this is a game changer for the region,” says Mr. Dahl. The result is more spending on dining out and entertainment.

It’s little wonder, then, why investment in shale grew by 55 percent last year, not to mention why President Obama has taken notice of shale in a big way.

Of course, this economic revival is also paving the way to increased energy security, as domestic output of oil and natural gas reach new highs and reliance on OPEC becomes less necessary. Turns out we’re producing so much that energy prices are falling, which means consumers pay less for utility bills and manufacturers can invest more in the United States … all of which, in turn, means more capital to invest in U.S. businesses and the ability to create even more U.S. jobs.

*UPDATE* The President’s Big Shout Out to Shale
According to most geologists, shale has been a natural geological feature of the earth’s outermost crust for about two billion years now, give or take a couple hundred million. But would you believe it? In all that time, the word "shale" had never been mentioned in a State of the Union address...

UPDATE (Jan. 26, 10:26am ET): A document on the White House website (found here) entitled “Blueprint for an America Built to Last” reiterates the President’s support for natural gas development and the hundreds of thousands of jobs it will create. It is indeed telling (and little wonder) that developing natural gas from shale plays so prominently in a plan to create jobs while also reducing environmental impacts.

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According to most geologists, shale has been a natural geological feature of the earth’s outermost crust for about two billion years now, give or take a couple hundred million.  But would you believe it? In all that time, the word “shale” had never been mentioned in a State of the Union address delivered by an American president (in fairness, the office of U.S. president hasn’t been around quite that long).

Well, it had to happen eventually. And last night, that two-billion-year-long-no-mention streak finally came to an end, with President Obama devoting a significant segment of his nationally (and internationally) televised address to touting the promise and potential of developing America’s enormous natural gas resources — particularly those in “shale rock” — as the foundation for an energy policy that’s “cleaner, cheaper, and full of new jobs.” From the speech:

“We have a supply of natural gas that can last America nearly 100 years,” the President stated, “And my administration will take every possible action to safely develop this energy.  Experts believe this will support more than 600,000 jobs by the end of the decade.” The President went on to say that expanded natural gas development will “create jobs and power trucks and factories that are cleaner and cheaper, proving that we don’t have to choose between our environment and our economy.”

But unlike the numerous throwaway lines in all too many political speeches and presidential statements, the president’s words about natural gas were clearly a major component of his address, and news outlets from across the country took notice. Below is a snapshot of what major media had to say about the speech, specifically the president’s endorsement of the responsible development of natural gas from shale:

President Barack Obama on Tuesday pledged support for the U.S. shale gas boom, but said government must focus on safe development of the energy resource.

In his State of the Union address, Obama called for government to develop a roadmap for responsible shale gas production and said his administration would move forward with “common-sense” new rules to make sure drillers protect the public.

“America will develop this resource without putting the health and safety of our citizens at risk,” Obama said.

Obama, in his State of the Union address Tuesday, said natural gas was one of the foundations for U.S. energy security. He said there’s enough natural gas in the country to meet domestic demand for 100 years but companies working to exploit those reserves must do so responsibly.

In his State of the Union address Tuesday night, Obama spoke optimistically about the bounty of unconventional natural gas under the eastern United States. “We have a supply of natural gas that can last America nearly 100 years,” Obama said, “and my administration will take every possible action to safely develop this energy.” This is good news, pretty much no matter where you land on the political spectrum.

President Barack Obama pushed drilling for gas in shale rock and support for cleaner energy sources to boost the economy in his final State of the Union address before facing U.S. voters in November.

Hydraulic fracturing, the process of injecting water, sand and chemicals underground to free gas trapped in rock, could create more than 600,000 jobs by the end of the decade, Obama said yesterday. The process, called fracking, is among a list of energy policies Obama said would fuel economic growth.

“We have a supply of natural gas that can last America nearly 100 years, and my administration will take every possible action to safely develop this energy,” Obama said.

Obama also highlighted the economic potential from tapping into the nation’s natural gas supplies, citing independent reports showing the industry could support about 600,000 jobs over the next decade…”This country needs an all-out, all-of-the-above strategy that develops every available source of American energy — a strategy that’s cleaner, cheaper and full of new jobs,” Obama said to rousing applause from Republicans in the House chamber.

Cleaner. Cheaper. More affordable. And insanely abundant. At a time when most folks on Capitol Hill today can’t even agree on what they disagree on, responsible development of American energy resources represents that rarest of ideas in Washington that appear to make sense to just about everyone across the political continuum. Heck, even Sen. Bob Casey (D-Pa.), previously (and currently?) a critic of Marcellus development in his state, told reporters after the speech that he “was glad for the focus on natural gas. It’s a big benefit to Pennsylvania. We’ve got a great natural resource with lots of jobs.”

And he wasn’t the only one talking shale last night. Click around below to see what other folks had to say:

Virginia “Gigi” Lazenby, Chairman, Independent Petroleum Association of America (IPAA):

“Our industry, made up of mostly very small- and medium-sized businesses, applauds the president for his stated commitment to expanding the responsible development of job-creating American oil and natural gas. As the president made clear this evening, job creation and the restoration of the American dream is a shared goal that exceeds political boundaries. As the president underscored, our nation continues to increase its domestic oil and gas production, creating thousands of well-paying, private sector jobs, providing much-needed relief and savings for struggling consumers and stimulating an otherwise anemic economy.”

Jack Gerard, President and CEO, American Petroleum Institute:

“The administration has an opportunity to turn energy policy in a direction that could provide huge benefits to our economy. And if the President is sincere in this, our industry will work very hard with him to make it happen.” (NOTE: Gerard also added, “If the President is serious about creating more jobs and more energy, allow America’s oil and natural gas companies to produce more of our energy at home, and we’ll put people to work and deliver more revenue to the government. That’s what the American people want.”)

Statement from America’s Natural Gas Alliance (ANGA):

“Tonight’s speech builds on the White House report earlier this month documenting the broad impact that natural gas production can have on investment and job creation across leading sectors of our economy. A range of U.S. industries and their workers are more competitive today thanks to our nation’s vast, affordable natural gas supplies. Along with these opportunities come lower energy costs for consumers and cleaner air.”

Kathryn Klaber, President, Marcellus Shale Coalition:

“We are encouraged that President Obama recognizes the tremendous energy security, environmental, and economic benefits associated with job-creating American shale gas development fueled overwhelmingly through private investment on privately-owned lands. And while presidents of both parties have made a clarion call for more American energy over the past four decades, it is our genuine hope that President Obama’s remarks tonight are reflected in his Administration’s policies that are rooted in sound science and move forward with an aim of leveraging our nation’s abundant natural gas resources on behalf of consumers, families, and small businesses. American natural gas will continue to make our nation stronger and more secure.”

Dave McCurdy, President and CEO, American Gas Association:

“If there was ever a fuel in the right place at the right time, it is natural gas in 2012 and beyond. We’re glad to see the President acknowledge the many benefits natural gas provides for our energy future, not just in the State of the Union Address but also in his latest jobs report…By continuing to increase the use of natural gas, we can make progress on our national priorities of helping to improve our economy, reduce environmental impacts and secure our nation’s energy future.”

Brad Gill, Executive Director, Independent Oil and Gas Association of New York (IOGA of NY):

“In his State of the Union Address Tuesday, President Obama spoke of the important role domestic oil and natural gas will have in securing the nation’s energy future and economic recovery. Using newer technologies to harvest homegrown energy is a vital component in job creation and commerce by powering businesses and ‘factories that are cleaner and cheaper’… The President’s energy policy acknowledges the 600,000 jobs that natural gas production will help create over the next decade. His messages must be heard and considered in New York as the state moves toward allowing safe natural gas development in the Southern Tier.”

Dan Fitzsimmons, President, Joint Landowners Coalition of New York (JLCNY):

“In tonight’s SOTU address, President Obama affirmed that we don’t have to choose between our economy and the environment in developing shale gas.  The president committed the Administration to taking ‘every possible action to safely develop this energy.’  The landowners of NY state stand ready to support this call to action.”

The Amazing Energy Future that the Federal Government Wants to Prevent

Shale oil development in places like North Dakota means ‘OPEC’s days are numbered,’ but federal regulators pursue alternative future with potentially devastating results.

In 2004, North Dakota was the ninth largest oil producing state in the country, producing less than half as much oil per year as the state of New Mexico. In 2010, a mere six years later, North Dakota had climbed to the fourth largest, surpassing energy rich Oklahoma and Louisiana. What happened?

Two words: shale oil. The Bakken formation in the western part of the state, which the U.S. Geological Survey predicted in 1995 had only 151 million barrels of oil, turned out to be one of the largest onshore oil fields ever discovered in the United States — in 2008 the USGS famously revised its estimate upward by an amazing 25-fold, projecting that the Bakken could hold more than four billion barrels of oil.

This incredible story was told in detail this weekend in the Wall Street Journal‘s weekend interview, ” How North Dakota Became Saudi Arabia,” which focused on Harold Hamm, the oil man credited with discovering the massive energy potential in the Bakken:

[S]ince 2005 America truly has been in the midst of a revolution in oil and natural gas, which is the nation’s fastest-growing manufacturing sector. No one is more responsible for that resurgence than Mr. Hamm. He was the original discoverer of the gigantic and prolific Bakken oil fields of Montana and North Dakota that have already helped move the U.S. into third place among world oil producers.

How much oil does Bakken have? The official estimate of the U.S. Geological Survey a few years ago was between four and five billion barrels. Mr. Hamm disagrees: “No way. We estimate that the entire field, fully developed, in Bakken is 24 billion barrels.”

Of course, none of this would have been possible were it not for horizontal drilling and hydraulic fracturing, both of which are needed to unlock the vast deposits of oil and natural gas in shale deposits across the country.

Yet even with this amazing success story, the America’s ability to reduce its reliance on OPEC is far from written in stone, and indeed seems to be under attack by federal regulators whose actions could undermine this renaissance just as its getting started. As the WSJ further explains:

[Hamm's] only beef these days is with Washington. Mr. Hamm was invited to the White House for a “giving summit” with wealthy Americans who have pledged to donate at least half their wealth to charity. (He’s given tens of millions of dollars already to schools like Oklahoma State and for diabetes research.) “Bill Gates, Warren Buffett, they were all there,” he recalls.

When it was Mr. Hamm’s turn to talk briefly with President Obama, “I told him of the revolution in the oil and gas industry and how we have the capacity to produce enough oil to enable America to replace OPEC. I wanted to make sure he knew about this.”

The president’s reaction? “He turned to me and said, ‘Oil and gas will be important for the next few years. But we need to go on to green and alternative energy. [Energy] Secretary [Steven] Chu has assured me that within five years, we can have a battery developed that will make a car with the equivalent of 130 miles per gallon.’” Mr. Hamm holds his head in his hands and says, “Even if you believed that, why would you want to stop oil and gas development? It was pretty disappointing.”

Washington keeps “sticking a regulatory boot at our necks and then turns around and asks: ‘Why aren’t you creating more jobs,’” he says. He roils at the Interior Department delays of months and sometimes years to get permits for drilling. “These delays kill projects,” he says. Even the Securities and Exchange Commission is now tightening the screws on the oil industry, requiring companies like Continental to report their production and federal royalties on thousands of individual leases under the Sarbanes-Oxley accounting rules. “I could go to jail because a local operator misreported the production in the field,” he says.

The impact of the “regulatory boot” and federal delays have a greater cost than hamstringing America’s capacity to produce energy. They also undermine the type of job creation and economic growth that a struggling economy so desperately needs:

Mr. Hamm believes that if Mr. Obama truly wants more job creation, he should study North Dakota, the state with the lowest unemployment rate in the nation at 3.5%. He swears that number is overstated: “We can’t find any unemployed people up there. The state has 18,000 unfilled jobs,” Mr. Hamm insists. “And these are jobs that pay $60,000 to $80,000 a year.” The economy is expanding so fast that North Dakota has a housing shortage. Thanks to the oil boom—Continental pays more than $50 million in state taxes a year—the state has a budget surplus and is considering ending income and property taxes.

Less reliance on OPEC. More high-paying jobs. Budget surpluses. Lower tax burdens for everyone. These are undeniable benefits of responsible oil and gas production — particularly in states with significant shale resources such as Pennsylvania (Marcellus shale), Texas (Eagle Ford shale), Louisiana (Haynesville shale), and now Ohio (Utica shale) — that the federal government should be encouraging. Instead, members of Congress are pushing for the Environmental Protection Agency to ban hydraulic fracturing, thereby cutting off at the knees America’s energy revolution. The President, meanwhile, is threatening to curb domestic oil and gas production through higher taxes.

Instead of trying to shut down North Dakota’s model of more American energy production, more jobs, and more public revenue, maybe the federal government should be taking lessons from it.

Greens Beg President Obama to Ignore the Facts on HF

If a fact-free letter requesting a ban on American energy production falls on the President’s desk, does it make a difference? We’re about to find out.

An assortment of “green” groups, writing allegedly on “behalf of Americans who live in every US state and territory,” have written directly to the President to “employ any legal means to put a halt to hydraulic fracturing.” Signers include political heavyweights like Kids for Saving Earth, the anti-energy website DeSmogBlog, and a group that opposes the construction of a cement plant in North Carolina.

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What To Look For From The President This Week

The White House announced today that President Obama will pivot this week from ongoing efforts in the Middle East to focus his energy, well, on energy. Tomorrow, as the Wall Street Journal reports, “President Barack Obama will outline a plan for America’s energy security on Wednesday [at Georgetown University].”

This too from whitehouse.gov: “The President will visit a UPS shipping facility in Landover, MD where he will view vehicles from AT&T, FedEx, PepsiCo, UPS and Verizon’s clean fleets and deliver remarks to the companies’ employees.” No word if Daniel Snyder has received a formal invite yet.

Many of these “clean fleet” vehicles are certainly powered by cleaner-burning, American natural gas. And the president, for his part, and his administration, have been mostly supportive of shale gas production, which is performed overwhelmingly by smaller, independent producers here in America. This from his January 25 State of the Union Address:

Some folks want wind and solar.  Others want nuclear, clean coal and natural gas.  To meet this goal, we will need them all — and I urge Democrats and Republicans to work together to make it happen.

You see, the United States is uniquely positioned to continue to be a global leader in natural gas producing — we have roughly a 100 year supply available. But misguided regulatory and legislative threats persist in Washington that could dramatically and unnecessarily thwart this production, which is helping to stabilize energy prices for struggling American consumers, driving down our dangerous dependence on unstable region’s of the world to fuel our economy and creating tens of thousands of good-paying, blue-collar jobs at a time when they’re most needed.

Hydraulic fracturing – a 60 year old oil and natural gas stimulation technology – remains at the core of this debate. Without this tightly-regulated and environmentally proven process, that abundant, 100 year supply of domestic, job-creating natural gas, as well as hundreds of millions of barrels of American oil, would remain out of reach.

The fact remains that individual energy-producing states close, ably and aggressively regulate well-casing standards and therefore fracturing and other completions technologies. So closely, ably and aggressively that fracturing has never impacted groundwater – but has been used to enhance American oil and natural gas production more than 1.1 million times.

Some in Washington, nonetheless, are seeking to fundamentally rewrite longstanding federal law with the goal of stripping individual states – and their highly-skilled technical experts – of their ability to ensure that fracturing is done safely. The impact could be devastating, both economically and from an energy security standpoint.

In a speech last week, Louisiana Oil and Gas Association president Don Briggs said this about this about these misguided, ‘Washington-knows-best’ efforts:

Briggs said the natural gas market is “coming on strong,” but there are some attempts to have the process of hydraulic fracturing controlled by the federal Environmental Protection Agency. Currently, each state oversees the process.

“If the EPA controls hydraulic fracturing … then all you have to do is have one operator somewhere make a mistake, and they will shut down all exploration,” Briggs said.

“President Obama’s central focus is on stimulating economic recovery and helping America emerge a stronger and more prosperous nation,” reads the White House’s ‘Guiding Principles’, adding this: “President Obama’s first priority in confronting the economic crisis is to put Americans back to work.” Well, Mr. President, look no further than American independent oil and natural gas producers, who are helping to create tens of thousands of jobs. These jobs, however, are tied directly to hydraulic fracturing.

At A Glance: Hydraulic Fracturing-Related Economic Impacts

At a conference yesterday, according the Wall Street Journal, Polish Prime Minister Donald Tusk said this about shale gas development in his country: “The fruits of this debate will be what’s priceless: a feeling of security and a hope for the future for millions of people.”

President Obama has an opportunity to demonstrate real leadership on the issue of responsibly developing job-creating American oil and natural gas this week, just as Prime Minister Tusk and a host of other world leaders have in their countries. In fact, this production is “helping America emerge a stronger and more prosperous nation.”