editorial on August 19 that concludes with: “the most important gains could come from radical shifts that are as unanticipated as was North America's emergence as an oil and gas powerhouse.” It points out “that free enterprise has a way of solving problems that is beyond the capabilities of government.” And continues: “The surge in domestic oil and gas production—spurred on by such new techniques as hydraulic fracturing (or ‘fracking’) did not come about as the result of government energy polices, but largely in spite of them.”
Other oil producing countries are taking note. Mexico has huge oil-and-gas reserves— estimated at 115bn barrels of oil equivalent, comparable to Kuwait’s—but lacks the technology to develop non-conventionals, such as shale gas and deep-sea crude. President Pena Nieto is looking to make reforms that would allow foreign companies to partner with the state-owned oil company, Pemex, to bring the wealth to the surface.
The reality of North America becoming an “oil-and-gas powerhouse” threatens more than just OPEC nations. In response to the USA Today editorial, Frances Beinecke, president of the Natural Resources Defense Council (NRDC), wrote an “opposing view” proclaiming: “Increasing domestic oil and gas production is no panacea for our nation's energy needs or economy.”
Apparently, she is not aware that regions with oil-and-gas development have some of the lowest unemployment in the country—states with resource extraction such as Texas, Montana, Oklahoma, and Wyoming all have unemployment rates below the national average and North Dakota has the lowest in the country at 3.9%. My home state of New Mexico shares the rich Permian Basin with Texas. There, they tell me: “Anyone who can pass a drug test can get a job.”
Friday, August 23, was the deadline for public comment on the Bureau of Land Management’s (BLM) draft rule to regulate hydraulic fracturing on federal lands. Oklahoma Attorney General Pruitt and attorneys general from four other states sent a letter to the BLM, objecting to the agency’s intent to duplicate the state’s long-standing regulation of hydraulic fracturing. “States have been regulating hydraulic fracturing for more than 40 years with great success. This proposed rule is just another layer of unnecessary regulation that will cause significant delays and hinder natural gas production,” General Pruitt said. “The Supreme Court has made it clear that regulation of water and land use is a state and local power, and no law gives an agency such as the BLM the authority to pre-empt state regulations.”
Environmentalists’ hyperbole about the use of hydraulic fracturing would lead the general public to believe that the practice is new. In fact it has been successfully used to extract oil and gas for more than 60 years—and, over the decades, it has been refined and made giant technological leaps. Attempts to link fracking to water contamination have repeatedly been disproven. Read full column