In the years since the current administration has assumed office, positive strides have been made in environmental restrictions that have directly benefitted Oil and Gas. When we chatted with Paul Midkiff of Wells Fargo earlier this year, he told us there are four huge advances that have had a big economic impact on our industry. While growth and development can seem like a moving target, recent advances have postured the industry to continue to grow onward and upward!
The Dakota Access Pipeline (DAPL) is over 1,1100 miles of underground pipeline. It spans across North Dakota, South Dakota, Iowa and ends in central Illinois. It is the result of an extensive process that involved review and approval by the U.S. Army Corps of Engineers and regulators in North Dakota, South Dakota, Iowa, and Illinois. It is considered “among the safest, most technologically advanced pipelines in the world.”
Liquified natural gas is definitely an area of huge potential, especially in the Permian. Currently the lack of pipeline availability makes it difficult to capitalize on the full potential. But with new restrictions being limited on terminals, there is way less of a cap on the potential to expand in the future.
As many as 85 and counting EPA restrictions have been introduced or reversed from the previous administration. This includes rules that were officially reversed, and rollbacks still in progress. According to an article by the Seattle Times published in June of this year, these include air pollution/emissions, drilling/extraction, infrastructure/planning, animals, toxic substances/safety, water pollution, as well as additional uncategorized items.
By the end of 2018, 26 million Federal acres were listed under lease to oil and gas developers. Of that, about 12.8 million acres are producing oil and gas in economic quantities. This is an almost 40 percent increase in oil and gas drilling permits on public land. The average time to process a Bureau of Land Management application was also cut nearly in half from 120 days in 2017 to 63 days in 2018.
As we look ahead to the next chapter in our industry, we see huge areas of potential capital expansion. To get additional info about some of the growth RK can bring your company, call (432) 563- 7900 or email firstname.lastname@example.org