EPA clears way for more fracking profits

Marketwatch ^ | April 24, 2012, 4:11 a.m. EDT | Kirk Spano

[Ernest_at_the_Beach]

Last week, tucked into the headlines was a story describing how the Environmental Protection Agency decided to give oil and gas companies until 2015 to fully comply with so-called "green completions" for their hydraulic fracturing operations. In the near term, this move removes the risk for companies engaged in "fracking" of having the EPA slow their high growth via the rapid implementation of new rules.

For exploration and production companies, such as Bakken acreage leader Continental Resources /quotes/zigman/465953/quotes/nls/clr CLR -0.13%   and diversified independent oil and gas producer Apache Corporation /quotes/zigman/218137/quotes/nls/apa APA +0.33% , the slow phase-in of cleaner fracking clears a path to rapid field expansion.

Continental, led by Harold Hamm, said it expects production growth of 37-40% for 2012. With the risk of EPA obstacles greatly reduced, such numbers become much more feasible.

[Ernest_at_the_Beach]

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I won't spend much time on this, but there was also a nod towards natural gas in the EPA Fact Sheet on the new rules to apply to hydraulic fracturing. Here is what the EPA says on the first page:

• In a green completion, special equipment separates gas and liquid hydrocarbons from the flowback that comes from the well as it is being prepared for production. The gas and hydrocarbons can then be treated and used or sold , avoiding the waste of natural resources that cannot be renewed.

[Ernest_at_the_Beach]

And:

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This isn't really a big deal yet, but taken together with the bill sitting in Congress that would promote the adoption of natural gas in trucking , it is starting to look like America will indeed use the massive deposits of natural gas we now have access to via fracking. Timing is the big unknown. So, I am not ready to invest directly towards natural gas as a clear transition that will have to take place before natural gas recovers, however, it is something to keep on the radar.

[Ernest_at_the_Beach]

So the EPA is going to let the drilling continue.

...very interesting...Obama must be concerned about how his energy moves have been polling.....

[ModelBreaker]

The deferral of EPA rules was until after the election. Duh.

[Army Air Corps]

Ping

[SunkenCiv]

Zero’s big worry is that the radical middle will figure out that he’s temporarily pandering, and will pull out the rug after his reelection. Thanks Ernest.

[Ernest_at_the_Beach]

Two years after....that is a bit of a surprise.

[Deagle]

The EPA needs to be abandoned! Can I say destroyed! They have become a tool of the left and have to be removed!

[Marine_Uncle]

I downloaded the EPA document you provided E.. Thanks. Yes.
Interesting development. Perhaps the many sources of outcry from thousands of solid scientist, chemists, engineers, the will of a few such as say Newt Gingrich, who are on the record to want to abolish the EPA and set up some new more responsible government organization, are starting to rattle the brains of the goons that are now in power.
We shall see where it leads toward in the next few years.

[Ernest_at_the_Beach]

Gonna get interesting.

[SouthTexas]

So the EPA is going to let the drilling continue.

Like the continued drilling in the Gulf?

[Ernest_at_the_Beach]

See this:

EPA Official: EPAs "philosophy" is to "crucify" and "make examples" of US energy producers