Tag Archive | "Institute for Energy Research"

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Circular Logic


Hey, maybe this is the way it’s always gone, but you tell us if you see anything wrong with this picture:

Federal agency (we’ve changed the names to protect the guilty) informs private companies that, after years of environmental assessment, areas offshore Alaska will be available for lease; private company makes good-faith bid for the right to lease that acreage, wins bid, and turns over billions to federal agency; after a few more years of wrangling, federal agency informs private company that exploration may proceed, albeit conditionally; a third-party doesn’t like that decision, and files a lawsuit to stop it; the conversation over the future of that lease now expands to include the third-party litigant, the courts, and the federal agency – but contracted to exclude the company that invested those billions of dollars in the lease in the first place.

Follow all that? In 114 words, that’s basically the situation as it presently exists up here in Alaska. On Dec. 7, we blogged on this very site that Secretary Salazar’s MMS agency had tentatively approved of Shell’s plan to do preliminary work on three of the wells it leased from the government in 2008 – not talking about anything major here, just drilling a couple of test wells to see whether the $2.1 billion investment it made in the area last go-round could potentially bear fruit.

Is it possible the anti-energy groups read that post? Tough to know for sure, but it sure didn’t take ‘em long to strike. Last week, two separate rounds of lawsuits were filed in San Francisco’s Ninth Circus court: one by a long-time anti-energy group here in Alaska supported by national environmentalists, and the other? Well, by those same national environmentalists themselves:

A coalition of environmental groups and Arctic communities has filed a second lawsuit aimed at blocking a Shell Oil subsidiary from drilling in the Beaufort Sea.

The group sued Tuesday, hours after a group that helps manage Eskimo whaling in Alaska filed a similar lawsuit.

Both suits aim to block plans by Shell Gulf of Mexico Inc. to drill two wells off Alaska’s north coast.

On one hand, none of this should’ve come as a surprise to anyone who’s been following this issue with any intensity. Back in September, we passed along some interesting numbers compiled by the Institute for Energy Research on how many energy-related leases have been the object of litigation from these folks over the past few years:

The number of suits filed in federal court to delay, defer or outright deny the development of domestic energy resources has grown more than 700 percent in the past decade; from 167 protests per year between 1997 and 2000, to 1,180 a year from then until now.

How amazing is that? 1,200 lawsuits a year – three-and-a-half separate instances of suit filed each and every day. It’s quite a racket this groups have going, if you ask us – and none plays the racket any better than the Crag Law Center in Portland, Ore. According to its own website, this outfit is responsible for locking up millions of acres of taxpayer-owned land, working to prevent dead trees and under-brush from being taken off the forest floor, and even filing suit to prevent a McDonald’s restaurant from opening its doors. Seriously, guys? You’ve never had the McRib?

In any event, folks who actually live here in Alaska and care about its economic future and well-being aren’t taking the news of these lawsuits lying down. By way of the Juneau Empire (did you know that Juneau’s the only U.S. state capital that’s inaccessible by roadway?), we get word from the governor’s office that the state of Alaska “will intervene” in the case:

Gov. Sean Parnell said the state intends to show its support of a federal decision allowing Shell to proceed with offshore oil exploration.

The governor said the state will intervene in a lawsuit brought by environmental groups challenging the decision by the Minerals Management Service.  Shell plans on drilling three exploratory wells in the Chukchi Sea next year off Alaska’s northwest coastline.

Environmental groups bitterly oppose drilling.

That last line has it right: these groups bitterly oppose both the process for, and the product of, exploring for American energy. We get that. Unfortunately, now that the folks charged with actually exploring for that energy have been cut out of the process, the conversation on how to proceed in the future is now limited to the entities on this list: 1) Groups that “bitterly” oppose exploration, 2) Courts that bitterly oppose it too, and 3) a federal agency headed up by a man who, though not bitter, seems to oppose it right along with the rest.

Oh boy: we can’t WAIT to see how this whole thing turns out.

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Salazar vs. Reality


Facts are stubborn things, it’s been said, and numbers, such as they are, often betray the annoying habit of speaking for themselves. No one knows this better than Interior secretary Ken Salazar, who earlier this month was made aware that his agency had earned itself the distinction of having leased fewer acres of onshore energy lands than any in modern history.

Now, in his defense, it should be noted the contest was not exactly a run-away: Back in 1989, scarcely one million acres (of the 650 million owned by the federal government) were put up for lease by the administration of George H. W. Bush, doubtless in response to the tragedy in Alaska involving the Exxon-Valdez in March of that year.

Twenty years later, the administration of Barack Obama has found a way to dip below that historical nadir – all the more impressive considering there’s no Exxon-Valdez to demagogue, no $10 oil to take for granted, and no measurable progress heretofore in converting billions of dollars in taxpayer (foreign and domestic) money into real jobs for real American workers.

The folks over at the Institute for Energy Research did all the leg work on this one – all the numbers, charts, and graphs you’ll need to fully appreciate just how poorly this Interior Department performed in 2009 relative to past years are available for download here. And we’d also commend to your attention a great white paper out of Denver written up by the Independent Petroleum Association of Mountain States (IPAMS).

As you’ll see, the numbers, such as they do, speak for themselves. And so does Secretary Salazar. Unfortunately, instead of admitting to the American people that his agency could have done a better job at leveraging America’s enormous energy potential into jobs and revenues for the American people, this is the slop we get instead:

“We believe that our oil and gas leasing program is robust … But you wouldn’t know it if you listened to the untruths coming out of” oil and gas industry groups.

Salazar said repeated attacks have “all the flavor and deception of election-year politics” … He added that companies’ shareholders do not want industry trade groups to behave like an arm of a political party and said companies should choose a better path, to engage constructively and honestly with federal agencies.

Get all that? It’s not HIS agency’s fault that fewer acres were leased in 2009 than in any year in recent history. It’s not HIS agency’s fault that less than one-tenth the amount of bonus bid receipts were netted from energy producers in 2009 than were collected in 2008. It’s not HIS agency’s fault that it decided to outright nullify existing, legal leases to 77,055 acres of energy-rich land in Utah. No. It’s industry’s fault. And the man’s recriminations don’t end there:

“But Salazar said the department has leased a significant number of properties and noted that there are “huge undeveloped oil and gas acreages” that are under lease but not producing oil and gas.

“Large parts of the public domain have been made available,” Salazar said. “Those places are not being developed, yet we continue to make more of our public domain available for oil and gas development.”

Ah, yes: The 68 million acres canard – the last redoubt of the shameless politician. By now, you know how it goes: Oil companies are squatting on millions of acres of unused land, representing billions of barrels of oil; they aren’t producing any of it, part of a worldwide conspiracy to drive up prices; and naturally, policymakers have an obligation to compel these bad-boy producers to produce – by threatening to take away their leases before they come due.  

Thankfully, the 68 million acres talking point – a favorite of Mr. Salazar, stretching all the way back to his service in the Senate – has been about as thoroughly discredited as a talking point can get. More on that here. But before we go, we have one simple request of Ken Salazar: Mr. Secretary, please don’t pee on our leg and tell us it’s industry’s fault. And stop trying to convince the American people that your agency hasn’t played a material role in denying billions of barrels of American energy from reaching the people who own it.

Posted in Jobs, Revenue, The 5-Year PlanComments (1)


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