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After slashing production for months, U.S. shale-oil companies say they are ready to bring rigs back into service, setting up the first big test of their ability to quickly react to rising crude prices. Last week, EOG Resources Inc. said it would ramp up output if U.S. prices hold at recent levels, while Occidental Petroleum Corp. boosted planned production for the year. Other drillers said they would open the taps if U.S. benchmark West Texas Intermediate reaches $70 a barrel. WTI settled at $60.50 Wednesday, while global benchmark Brent settled at $66.81. An increase in U.S. production, coupled with rising...

Saudi Arabia continues to ratchet up production, taking market share away from U.S. shale producers. According to OPEC’s latest monthly oil report, Saudi Arabia boosted its oil output to 10.31 million barrels per day in April, a slight increase over the previous month’s total of 10.29 million barrels. That was enough for the de facto OPEC leader to claim its highest oil production level in more than three decades. Saudi Arabia has increased production by 700,000 barrels per day since the fourth quarter of 2014 in an effort maintain market share. The resulting crash in oil prices is forcing some...

Senate Republicans introduced a bill Wednesday that would overturn the Obama administration’s landmark climate rule for power plants and make it nearly impossible to rewrite them. The legislation represents the GOP’s first major legislative effort in the Senate to confront the Environmental Protection Agency’s (EPA) carbon dioxide limits it proposed last year. It reflects the Republican Party’s broad opposition to the regulations, which they say would cost billions of dollars, hundreds of thousands of jobs and have little to no environmental benefit. Republicans in both chambers have largely avoided legislation to stop the rules and instead focused their attention on...

According to US federal records reviewed by the Associated Press, Louisiana-based LLOG Exploration Offshore plans to engage in deepwater drilling in the Macondo reservoir. The AP says Harper's Magazine first reported the drilling plans late Tuesday. The BSEE green-lighted LLOG's permit to drill a new well near the Macondo site on April 13. Last October, the company's exploration plan was approved after the conclusion of an environmental review conducted by the BOEM. Referring to the 2010 Macondo incident which occurred in the same reservoir, LLOG's vice president for deepwater projects, Rick Fowler, told the AP, "Our commitment is not to...

On May 7, Tom Friedman published an op-ed in the New York Times filled with praise for Germany’s green-power program. “What the Germans have done in converting almost 30 percent of their electric grid to solar and wind energy from near zero in about 15 years has been a great contribution to the stability of our planet and its climate,” gushed Friedman. “ . . . This is a world-saving achievement.” Friedman is not alone in his admiration for the German energy program. President Obama has hailed it too, saying that the world should “look to Berlin” as the model...

Overseas competitors who were caught off-guard initially by rising US unconventional crude oil production have increased their own outputs now and can be expected to try and keep prices low to protect their global market shares, speakers at a May 12 Atlantic Council discussion said. That could make marginal US unconventional properties uneconomic, but won’t threaten the new US position as a major producing nation, they agreed. “We’re entering a phase when all the excess capacity will be resized to the new US world market share,” said Subash Chandra, managing director and senior equity analyst at Guggenheim Partners. “I don’t...

...Shell acquired the lease for just over $2 billion in 2008, and, absent a very good reason, the government felt obliged to approve it. Shell will be bound by safeguards that did not exist seven years ago. Several factors — including lawsuits and vigorous lobbying by environmental groups, widespread public dismay caused by the 2010 BP oil spill, and Shell’s ineptitude in earlier trial runs — have led the government to devise rules that are likely to make this project safer than it would have been. Shell is seeking to drill up to six exploratory wells in the Chukchi Sea...

ConocoPhillips CEO Ryan Lance said Tuesday that the Obama administration’s decision to allow a competitor’s Arctic drilling program to move forward has provided some, but not all, of the clarifications they were looking in their own projects in the region. The U.S. government on Monday gave Shell’s $6 billion plan to explore for crude oil in the northern Chukchi Sea a preliminary OK, reviving exploration plans that have faced significant political, engineering and cost challenges. Lance said that the go-ahead given to Shell’s program has not resolved all of ConocoPhillips’ Arctic questions. “A lot of the [regulations] are still subject...

Another bill that could quash city frack bans passed the Texas House of Representatives and is heading to the Senate. House Bill 2595 would prohibit cities from validating petitions that would restrict the right of any person to use or access private property for economic gain. That means if voters in a city attempted to petition to, for example, ban hydraulic fracking, as they did in Denton in North Texas, it would be tossed out because it violates the rights of mineral owners. The bill targets any petition that limits oil and gas operations. It does not apply to alcohol-related...

U.S. shale production growth will fall 86,000 barrels per day next month, the U.S. Energy Information Administration estimated in its monthly report, more evidence the nation’s oil boom is in decline. The EIA’s monthly forecast is the second in a row to project an overall decline in domestic production growth, as diminishing output from older shale wells outpaces new gushers in the oil fields. Producers have sidelined about 941 oil-drilling rigs since October, and oil traders are starting to see signs the U.S. shale boom is weakening, which could signal the global glut in crude supplies will ease. Crude prices...

Energy and environmental regulations finalized by the Obama administration in the past five years come with a hefty price tag of $460.5 billion, according to data compiled by a center-right think tank. The American Action Forum’s Regulation Rodeo database shows that the Obama administration finalized 275 energy and environment regulations between 2009 and 2014, with the price tag of each regulation averaging $1.75 billion. And that doesn’t even consider the paperwork companies will have to complete. AAF data shows that Obama’s energy regulations have burdened Americans with 24.3 million paperwork hours. That means every year, Americans have to complete an...

You expect a certain sort of magic from a car like Toyota's Mirai, the world's first mass-market, hydrogen-powered all-electric named after the Japanese word for "future." It maxes out at 300 miles, refuels in five minutes and spits out zero emissions except for water, all for tens of thousands of dollars less than Tesla's electric Model S. But behind the wheel of the four-door Mirai, which California drivers can buy in October for around $50,000, what you get is something much more, well, boring: a smooth, quiet, mid-size sedan you wouldn't find out of place in a school pick-up circle....

CHARLESTON, W.Va. Patriot Coal Corp. filed for Chapter 11 bankruptcy protection Tuesday for the second time in three years. The company made the filing in U.S. Bankruptcy Court for the Eastern District of Virginia. It had emerged from an earlier bankruptcy case in December 2013 in Missouri. Patriot said it is involved in active negotiations for the sale of its operating assets to a strategic partner. Patriot said it will continue shipping and mining operations and it has received a commitment for $100 million in debt financing from secured debt holders that it did not identify.

American Eagle Energy became the fourth U.S. energy producer to file for bankruptcy protection in the aftermath of the big drop in crude oil prices. The Colorado-based company that buys and develops oil wells in the Bakken oil fields of North Dakota and Montana filed for chapter 11 bankruptcy protection on Monday in Denver’s bankruptcy court. American Eagle Energy, which recently missed an interest payment on its debt, listed assets of $222 million and liabilities of $215 million. Shares of American Eagle Energy traded for as much as $7.05 less than a year ago, reflecting the stunningly fast collapse of...

Oil production from the Bakken and Eagle Ford shale plays look like they’ve peaked and other shale plays may not be far behind. Oil production from seven major U.S. shale plays is expected to fall by a total of 86,000 barrels a day in June, according to a monthly report from the Energy Information Administration released Monday. The previous report released a month ago also showed a forecast for a fall of 57,000 barrels a day in May. Oil output at the Eagle Ford shale play in South Texas is forecast to see the biggest decline, down 47,000 barrels a...

The Organization of the Petroleum Exporting Countries doesn’t see oil prices consistently trading at $100 a barrel again in the next decade, a pessimistic assessment that has the group considering the return of production limits to influence the market, according to people familiar with a recent strategy report. The report predicted that oil prices will be about $76 a barrel in 2025 in OPEC’s most optimistic scenario, the people said, a reflection of the cartel’s worries that American competitors will be able to cope with low prices and keep pumping out supplies. It also contemplated situations where crude oil costs...

Mountain Pact Campaign Targets Coal Companies Seeks compensation for global warming By: The Editors Ten western mountain towns hit hard by climate change are launching a campaign against the coal industry, seeking hundreds of million of dollars in compensation per year to help their communities adapt, the Denver Post reported earlier this week. In February, Outside covered how the nonprofit advocacy group Mountain Pact is rallying ski resort towns around the country to stem the effects of climate change. In a letter being sent this week to federal officials, lawmakers, and the White House, the towns—which include Aspen, Telluride, and...

The Obama administration gave conditional approval on Monday for Shell Gulf of Mexico, Inc. to start drilling for oil and gas in the Arctic Ocean this summer. The approval is a major victory for Shell and the rest of the petroleum industry, which has sought for years to drill in the remote waters of the Chukchi seas, which are believed to hold vast reserves of oil and gas. “We have taken a thoughtful approach to carefully considering potential exploration in the Chukchi Sea, recognizing the significant environmental, social and ecological resources in the region and establishing high standards for the...

Siemens, the German industrial giant, said on Thursday that it would cut 4,500 jobs as it reacts to a slump in oil prices that has eroded its sales of equipment to the energy industry. Lower oil prices have generally been a boon to the eurozone economy, freeing up cash that consumers can spend on other things. But in the case of Siemens, the effect is the opposite because of its large business supplying producers of oil, gas and electricity. Siemens said it needed to cut jobs and reduce costs because of “the persistently difficult environment in the global power generation...

The green energy movement in America is dead. May it rest in peace. No, a majority of American energy over the next 20 years is not going to come from windmills and solar panels. One important lesson to be learned from the green energy fad’s rapid and expensive demise is that central planning doesn’t work. What crushed green energy was the boom in shale oil and gas along with the steep decline in the price of fossil fuel that few saw coming just a few years ago. An International Energy Agency report concedes that green energy is in fast retreat...