|
Vol. 232 No.6 |
|
|
| PRAMOD KULKARNI, EDITOR |
Us vs. them or we
Big government is a fact of life in modern societies throughout the world. What differs from one country to another is the working relationship between the oil and gas industry and the government. In the United States, it is currently an “us vs. them” confrontation. On the other hand, there exists a productive “we’re in this together” relationship between the government and the oil and gas sector in countries as diverse as Brazil, Norway and Australia.
United States. At the federal level, politically neutral agencies such as the US Geological Service, the Energy Information Administration and the National Energy Technology Laboratory have long supported the oil and gas industry with resource assessments, industry statistics and technology partnerships. On the other hand, the industry faces political interference from the current Democratic administration and its congressional allies on a host of issues: delays in the issuance of permits in the Gulf of Mexico, limited access to public lands, threats of higher taxes and efforts to regulate natural gas fracturing. While a bill to eliminate tax allowances for oil companies failed in the US Senate, it is expected to become a major propaganda plank for the Democratic Party in the 2012 presidential election.
Brazil. The Brazilian government and Petrobras see eye-to-eye on oil and gas development, the place of renewable fuels in the energy mix, and how oil revenues can be used to institute social change. One obvious reason for the positive spirit of cooperation is that even after raising $70 billion in an initial public offering in 2010, Petrobras remains a state-influenced entity with the federal government owning 63.6% of the voting common stock. Brazilian President Dilma Rousseff, who previously served as the Petrobras chairman, has a good working relationship with Petrobras President José Sergio Gabrielli, and the two meet regularly to confer on energy issues.
Norway. Across the globe in Norway, the government, state-owned Statoil and the international oil companies that operate on the Norwegian continental shelf are working in relative harmony under strict safety and environmental standards, including a carbon tax. Within the Petroleum Ministry, the Norwegian Petroleum Directorate (NPD) oversees the leasing of oil and gas blocks. Acting on a decline in oil production since 2001, the NPD has conducted road shows for its licensing rounds to recruit new companies such as Talisman and GDF Suez, and has extended the leasing to the Norwegian and Barents Seas.
Australia. A diverse mix of international oil companies, privately owned Australian IOCs and local independents are working in a productive atmosphere to exploit the continent’s offshore, coal seam and shale gas resources. In the aftermath of the Montara oil spill, the Commonwealth government did not impose an industry-wide moratorium, and in fact has allowed Thailand’s PTT Exploration and Production (PTTEP) to continue operating after receiving binding commitments to improve its safety and environmental practices.
Political divide. Countries around the world have evolved distinctive forms of government and economic models to govern the exploitation of energy resources. What may be the right framework for Brazil and Norway is not necessarily appropriate for the US or Australia. This overview is intended as a simple exercise to suggest that the confrontational environment that currently prevails in the US is not a universal phenomenon. Two common threads that weave through energy development in Brazil, Norway and Australia are a genuine appreciation for the value that oil and gas development brings to the national economy and the desire to deal with potentially contentious issues in a positive environment. It appears that the current confrontational relationship between the oil and gas industry and the Obama administration is symptomatic of the current liberal vs. conservative political divide in the US.
IN THIS ISSUE
Energy issues. World Oil is pleased to welcome a new regular column on oil and gas policy by industry veteran Dr. William J. Pike, who currently serves as chairman of World Oil’s Editorial Advisory Board. He was the first regional editor and then the international editor for World Oil from 1992 to 1995, based in Aberdeen, Scotland.
Unique well geometry. A team of Warren E&P and Baker Hughes engineers drilled and completed six wells in the form of a sine wave to target thin sand zones in a California oil field. With the success of these six wells, the operator is planning to drill an additional 130 sinusoidal wells.
Developing the Eagle Ford. Our Shale Energy series continues with an update on the liquids-rich Eagle Ford play, which is emerging as a dark horse with potential to overtake the Barnett and Haynesville plays in production volume.
Focus on Australia. The emerging energy giant in the Asia-Pacific region is Australia. The country currently ranks as the world’s fourth largest LGN exporter and is aiming to move up the ranks as mega-LNG projects such as Pluto, Gorgon and Prelude begin production.
Logging and formation evaluation advances. An experienced logging consultant discusses the latest tools and topics in wireline, coring, MWD/LWD and more.
|
