Congress passed the 2010 federal budget without adopting the Obama Administration’s proposal to eliminate several tax provisions favorable to the oil and gas industry, including percentage depletion and expensing of intangible drilling costs. See my earlier post discussing these tax provisions. Adam Haynes, EVP of Texas Independent Producers and Royalty Owners Association (TIPRO), was…
The Energy Information Administration has revised its forecast for 2009 U.S. industrial natural gas demand, to decline by 7.4% this year. It predicts total natural gas consumption to fall 1.8% in 2009. U.S. natural gas production is expected to decline 0.3% in 2009, and to slip 1% in 2010. EIA predicts natural gas…
Range Resources announced on April 16 that it had completed a horizontal well in the Barnett Shale in southern Tarrant County that produced an average of 9.6 mmcf per day for the first 30 days of its production. This would be the largest Barnett Shale well completed to date. Range currently…
Seismic surveys have become the primary tool of exploration companies in the continental United States, both onshore and offshore. 3-D seismic surveys have lowered finding costs and allloowed exploration for reserves not locatable by other means, revolutionizing the industry. Below is a non-scientific explanation of how seismic surveys work. A…
President Obama, in an attempt to recoup some of the money being spent to revive the economy, proposes to repeal several tax provisions near and dear to the oil and gas industry: Enhanced oil recovery credit Marginal well tax credit Expensing of intangible drilling costs Deduction for tertiary injectants Passive…
H.R. 1835, the New Alternative Transportation to Give Americans Solutions Act of 2009 (NAT GAS Act) was introduced in the U.S. House of Representatives by Dan Boren (D-OK), John Larson (D-CT) and John Sullivan (R-OK). Its purpose is to promote the use of natural gas in vehicles, with an emphasis…
Chesapeake Energy has obtained City approval for a “master drilling plan” that lays out plans to drill 69 horizontal wells from seven drilling locations within the City of Fort Worth. The plan identifies the drilling locations and the gathering lines, and how produced water will be disposed of. The plan shows how…
In a previous post I discussed a recent Texas Supreme Court case, Exxon v. Emerald, reversing a multimillion-dollar judgment against Exxon for intentionally sabatoging wells so that they could not be re-entered. This nudged me to look at other royalty-owner related cases handed down by the Texas Supreme Court over the…
Renewable energy is a hot topic in the new Obama Administration. Wind Energy is being touted, especially in Texas, as a solution to global warming and U.S. dependence on foreign oil. Wind farms have sprouted all across Texas. Texas is now the leading wind energy producing state. Texas utilities are about…
On March 27, the Texas Supreme Court issued its opinions in two related cases, both styled Exxon Corporation v. Emerald Oil & Gas Company. The cases were argued before the court more than two years ago, and the decisions were awaited with much anticipation. The Court reversed a judgment against Exxon…