Tag: Gas

Revenue or Political View: How New Mexico is Navigating the Federal Moratorium

President Joe Biden’s executive order halting all leasing of Federal land for oil and gas activities indefinitely will be felt nationwide but nowhere else more so than New Mexico. Since energy production is the backbone of New Mexico’s economy, much of which sits on Federal land, no bigger impact of halting Federal oil and gas leasing would be felt than in New Mexico. The state has worked to reduce greenhouse gas emissions in the sector long before Biden took office and now only time will tell the full impact of Joe Biden’s Federal lease ban and temporary drilling moratorium.

Oklahoma’s Battle For Federal Lands

Shortly after being sworn into office, President Joe Biden signed an executive order to indefinitely ban lease sales for oil and gas development on all federal lands and offshore waters. Since energy production, namely oil and gas, is the backbone of Oklahoma’s economy, Oklahoma Governor Kevin Stitt went to bat with an executive order of his own in an attempt to overrule the order. While there is no certainty Oklahoma will be able to ignore or become exempt from Biden’s executive order, they can certainly let policy makers in Washington, D.C. know the problems that the new restrictions will cause.

Recent Air Quality and Flaring Changes

Impacts from oil and gas development on air quality is a growing issue across the United States as the sector contributes additional amounts of greenhouse gases to those naturally occurring in the atmosphere, increasing the greenhouse effect and global warming. Since climate change has a huge effect on personal livelihood, health, and future plans, it is not surprising that air quality regulations have become some of the most prevalent legislative changes in recent years. With the federal government taking a bit of a step back on these issues, several states have made significant changes to create stricter regulations on emissions, air quality, and flaring rules recently. These new requirements may impact E&P operators in several ways, while providing opportunities for other areas of the oil and gas sector.

Bullish Natural Gas Markets

A highly contested election, global pandemic, and historically low oil prices have grabbed headlines in recent months but there has been little focus on the surging natural gas market. In recent weeks, natural gas rose to prices not experienced in over a year and a half when the Henry Hub gas benchmark climbed to a 19-month high in late October. With a cold winter ahead, a historic Hurricane season in full swing, depressed oil production, and soaring LNG exports; the gas futures market remains strong and will maintain its upward momentum into the foreseeable future.

Did the Federal Bailout Simply Delay The Inevitable for Oil and Gas Companies?

At the end of March during the peak of the pandemic, the Federal Reserve was authorized to buy tens of billions of dollars in corporate bonds from the energy industry. These actions, paired with those taken by the Federal Government to save the oil and gas industry, were met with harsh criticism because the industry was struggling long before the global pandemic and seemed to simply be delaying the inevitable.