Archive for February, 2009

by Mickey Hepner The Edmond Sun

EDMOND — With names like Phillips Petroleum, Continental Oil and Kerr-McGee, it is clear that energy has played a storied role in Oklahoma’s past. With names like Williams Companies, Devon and Chesapeake it is clear that energy remains important to Oklahoma today. But just how important is it?

This week, the University of Central Oklahoma Policy Institute (www.uco.edu/ucopi), a nonpartisan public policy think tank housed at the UCO released a new report (full disclosure: I authored the report) that quantifies the economic impact of this industry. The report notes that the true impact of the oil and natural gas industry extends far beyond the industry itself. In fact every industry in Oklahoma benefits from the presence of the oil and natural gas industry here.

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BY CHRIS CASTEEL

WASHINGTON - President Barack Obama’s first budget would cut payments to some farmers and raise taxes on oil and gas companies.The proposals — most of which would have to be approved by Congress — drew swift reaction from members of Oklahoma’s congressional delegation and industry groups.

Rep. Frank Lucas, the top Republican on the House Agriculture Committee, fired off a letter to Agriculture Secretary Tom Vilsack protesting the proposed cuts in direct payments to farmers that have more than $500,000 in annual revenue.

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Oklahoma crude oil prices as of 5 p.m. Thursday:

BY RANDY ELLIS

From algae to oil, Oklahoma is blessed with abundant and diverse resources and research concerning energy.

Making intelligent decisions about how to develop and use those resources is vitally important to the future economic prosperity of Oklahoma and the nation as this country goes through an energy transition, speakers said Wednesday at an energy summit in Midwest City.

As pressure to wean this country from foreign oil has mounted, a lot of national attention has turned to wind as a renewable, nonpolluting alternative.

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Oil and gas producers should expect a political fight after a US appeals court ruled in their favor about royalties from deepwater leases. They also should prepare for wild claims about associated “costs.”Deepwater royalty relief, one of the most effective energy programs in US history, elicited outrage in 2006 when the New York Times reported that the federal budget lacked estimates of royalty income for deepwater Gulf of Mexico leases issued in 1998 and 1999. The leases didn’t reinstate royalty, as did those issued in similarly administered years, when oil and gas prices exceeded statutory “thresholds.”

Courts, meanwhile, have been addressing the question whether the Department of the Interior’s Minerals Management Service had authority to limit royalty relief on the basis of price for leases issued in the five years from 1996 through 2000. So far, the consistent answer is no.

Full Story in Oil and Gas Journal Feb 2009

ARLINGTON, Texas, Jan. 23 – Carrizo Oil & Gas, Inc. CRZO is proud to announce that initial royalty payments totaling more than $675,000 have been dispersed to mineral owners in the City of Arlington who signed agreements associated with the production of natural gas on and around the campus of The University of Texas at Arlington.

Our operations at the University of Texas at Arlington have been an overwhelming success,” Chip Johnson, President and CEO of Carrizo Oil & Gas, Inc. said. “It is exciting to be able to share these successes with our partners.”Among the 120 residents and organizations receiving their first monthly installment of royalty payments are:

• University of Texas at Arlington
• City of Arlington
• First Baptist Church of Arlington
• State of Texas

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The University of Texas has received the first of their monthly natural gas royalty checks — and it’s a whopper.

The $528,495 check is the first royalty payment related to the six wells that were developed on campus last year and that went into production in November 2008.

Others who will receive their first monthly royalties related to these wells include First Baptist Church of Arlington, the City of Arlington, the State of Texas and several neighbors in the College Hills neighborhood as well as other areas.

“This is exciting news for the University and for our community,” said UT Arlington President James D. Spaniolo. “We look forward to using the University’s royalties to support undergraduate scholarships and graduate fellowships, faculty and staff recruitment and retention and the campus master plan.”

Full Story at nbcdfw.com

by Jamaal E. O’Neal

CARTHAGE — Carthage Economic Development Corp. President Charles Thomas said he’s bullish about gas production in Panola County.

“We’ve seen some rigs pull out, but we’re still bucking the trend, and with the Haynesville Shale, we’re all excited about the area’s future drilling prospects,” Thomas said.

Some oil and gas experts, however, warn that the area could experience a production decline and a rise in unemployment as oil and gas explorers begin to halt drilling projects.

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