Archive for March, 2009

CALGARY, ALBERTA - (Marketwire - March 4, 2009) - While the Energy Incentive Program announced yesterday by Alberta Energy Minister Mel Knight is a good step for Alberta’s oil and gas industry, access to capital remains a major stumbling block to Alberta’s economic recovery says AJM Petroleum Consultants, an evaluation firm that specializes in the economic evaluation of oil and gas reserves.”The Alberta government deserves credit for their efforts to stimulate an industry that is in a critical state,” said Ralph Glass, VP Operations of AJM Petroleum Consultants. “However, it’s important to bear in mind that the current slump in the oil and gas industry wasn’t caused by the introduction of the new Alberta Royalty Framework - it is a result of the capital equity freeze and the crash in the commodity prices. The government’s new drilling incentive program improves the situation for companies who have ‘money in the bank,’ but it won’t have much impact on companies who need to access capital to fund their drilling programs.”

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WASHINGTON (Reuters) - The Obama administration will decide later this year whether to raise the royalty rates energy companies would pay on the oil and natural gas produced on federal leases, U.S. Interior Secretary Ken Salazar said on Tuesday.Companies now pay a royalty rate ranging from 12.5 percent to 18.75 percent of the value of the oil and gas they drill. However, Salazar said other countries charge higher royalties and the Obama administration wants to make sure U.S. taxpayers are treated fairly.

“We are looking at royalty rates and compensation paid for both onshore and offshore oil and gas development,” Salazar told Reuters in a wide-ranging interview. “We will make sure the American citizen is getting its fair return.”

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By H. JOSEF HEBERT

WASHINGTON - Interior Secretary Ken Salazar said Monday he would consider tapping oil from Alaska’s Arctic National Wildlife Refuge if it can be done from outside the refuge’s boundaries, leaving animals and other wildlife undisturbed.But Salazar emphasized the Obama administration stands firm that the Alaska refuge, known as ANWR, “is a very special place” that must be protected and that he is not yet convinced directional drilling would meet that test.

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(CNN) — When Rita Bryer sees 300-foot-tall wind turbines sprouting up from the prairie near her home in western Oklahoma, she can’t help but wonder about the view from the top, where blades the size of semi-trucks spin.

“Out here, you can see the wind turbines from 10 miles away,” she said. “Think about how far you’ll be able to see when you’re at the top.”

So, partly out of curiosity, partly because she wants to be part of something new, the 51-year-old is leaving behind a career of odd jobs and oil-field work.

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by Izabella Kaminska

Here’s a good visual representation of just how much production has been taken out of the oil market in the US, and why with the combined cuts out of Opec, a new supply/demand balance may indeed have finally been reached.

According to Friday’s Baker Hughes report North American drilling rig totals fell for a sixth straight week. Specifically, for the week ended February 27th, the US lost 57 rigs, mostly gas and mostly onshore Texas and Oklahoma. And according to figures from Stephen Schork of the Schork Report rig numbers are now a third below their five-year norm.

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By Steve Gelsi, MarketWatchNEW YORK (MarketWatch) — Chesapeake Energy Corp.’s scaling back 7% of its total production and may make further reductions in drilling activity as management comes to grips with low natural-gas prices, the energy giant said Monday.

Chesapeake said the gas market may return to balance by end of 2009, if not sooner, as the Oklahoma City-based company sounded a note of hope after a series of cutbacks.

Wall Street didn’t immediately share the company’s optimism, as Chesapeake shares fell 9% to $14.28 during a brutal sell-off in the energy sector.

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By LYNN COOK Copyright 2009 Houston Chronicle

As falling commodity prices and rising debts force asset fire sales and bankruptcies in the energy industry, foreign companies are joining cash-rich American ones in looking for bargains on U.S. infrastructure and reserves.

“There’s interested international money out there still looking to do deep-water deals in the Gulf of Mexico and onshore as well,” said Houston-based Adrian Goodisman, a managing director with Scotia Waterous, the energy investment banking arm of the Bank of Nova Scotia.

Scotia Waterous officials say the firm closed $20 billion in energy deals last year, second only to Goldman Sachs. They weren’t all done before the financial crisis paralyzed Wall Street last fall, but many that came after were backed by foreign capital.

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Pacific Energy & Mining Company (PINKSHEETS: PEMC) announces the withdrawal of the acquisition of a 50% operating interest in 16 natural gas wells in the State of New Mexico. After review of the well conditions and further “Due Diligence,” the Company chose to reverse its planned acquisition of the property.

The Company holds interest in the Brennan Bottoms oil field. Brennan Bottoms is composed of approximately 1,700 acres of Federal leases. In Cisco, Utah the Company holds a direct interest in Cisco Springs oil and gas field (11 wells) and in Cisco Township oil and gas field (10 wells).

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