North Dakota Considers Slowing Down Oil Boom

North Dakota is considering measures to slow down the oil rush in the Bakken to cut down on the state’s higher-than-average rate of flaring natural gas, which many people feel has gotten out of control.

Apr 25, 2014 at 10:36AM

This article was written by Oilprice.com -- the leading provider of energy news in the world. Also check out these recent articles.

North Dakota is considering measures to slow down the oil rush in the Bakken to cut down on the state's higher-than-average rate of flaring natural gas, which many people feel has gotten out of control.

The Associated Press reported that on April 22, the North Dakota Industrial Commission, which oversees oil and gas production in the state, took testimony from supporters and detractors of a proposed slowdown in oil production.

At the hearing, landowners decried the negative consequences of gas flaring, citing a threat to public health and lost revenue from burning natural gas instead of capturing it.

Industry officials pushed back, arguing that the companies are already taking voluntary steps to capture more natural gas than can be sold. Currently, oil and gas companies operating in North Dakota flare 36 percent of natural gas that is extracted, for lack of pipeline and processing infrastructure to capture it. That compares to a nationwide average of only 1 percent, and a worldwide average of only 3 percent, according to the Energy Information Administration (EIA).

But oil and gas industry representatives warned that less flaring would hurt business, and therefore, the state.

"If production curtailment is the chosen regulatory path, then wells will be shut in or not even drilled. Revenues will be reduced, taxes will not be generated and those jobs will be lost. And the gas will not be captured and used productively," said Roger Kelley, director of regulatory affairs for Oklahoma City-based Continental Resources, a prominent driller in the Bakken.

This isn't the first time North Dakota has felt pressure to rein in its exploding oil and gas industry. Back in January, Robert Harms, the chairman of North Dakota's Republican Party called for a more "moderated approach." On April 22, one of the state's two U.S. senators, John Hoeven (R), although stopping short of calling for slower production, said reducing flaring would help the economy and also improve energy security.

The North Dakota Industrial Commission is comprised of three officials: Republican Gov. Jack Dalrymple, state Attorney General Wayne Stenehjem, and state Agriculture Commissioner Doug Goehring.

There's still time to profit from America's energy revolution
Record oil and natural gas production is revolutionizing the United States' energy position. Finding the right plays while historic amounts of capital expenditures are flooding the industry will pad your investment nest egg. For this reason, the Motley Fool is offering a look at three energy companies using a small IRS "loophole" to help line investor pockets. Learn this strategy, and the energy companies taking advantage, in our special report "The IRS Is Daring You To Make This Energy Investment." Don't miss out on this timely opportunity; click here to access your report -- it's absolutely free. 

 

Written by James Burgess at Oilprice.com.

Money to your ears - A great FREE investing resource for you

The best way to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as “binge-worthy finance.”

Feb 1, 2016 at 5:03PM

Whether we're in the midst of earnings season or riding out the market's lulls, you want to know the best strategies for your money.

And you'll want to go beyond the hype of screaming TV personalities, fear-mongering ads, and "analysis" from people who might have your email address ... but no track record of success.

In short, you want a voice of reason you can count on.

A 2015 Business Insider article titled, "11 websites to bookmark if you want to get rich," rated The Motley Fool as the #1 place online to get smarter about investing.

And one of the easiest, most enjoyable, most valuable ways to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as "binge-worthy finance."

Whether you make it part of your daily commute or you save up and listen to a handful of episodes for your 50-mile bike rides or long soaks in a bubble bath (or both!), the podcasts make sense of your money.

And unlike so many who want to make the subjects of personal finance and investing complicated and scary, our podcasts are clear, insightful, and (yes, it's true) fun.

Our free suite of podcasts

Motley Fool Money features a team of our analysts discussing the week's top business and investing stories, interviews, and an inside look at the stocks on our radar. The show is also heard weekly on dozens of radio stations across the country.

The hosts of Motley Fool Answers challenge the conventional wisdom on life's biggest financial issues to reveal what you really need to know to make smart money moves.

David Gardner, co-founder of The Motley Fool, is among the most respected and trusted sources on investing. And he's the host of Rule Breaker Investing, in which he shares his insights into today's most innovative and disruptive companies ... and how to profit from them.

Market Foolery is our daily look at stocks in the news, as well as the top business and investing stories.

And Industry Focus offers a deeper dive into a specific industry and the stories making headlines. Healthcare, technology, energy, consumer goods, and other industries take turns in the spotlight.

They're all informative, entertaining, and eminently listenable. Rule Breaker Investing and Answers are timeless, so it's worth going back to and listening from the very start; the other three are focused more on today's events, so listen to the most recent first.

All are available for free at www.fool.com/podcasts.

If you're looking for a friendly voice ... with great advice on how to make the most of your money ... from a business with a lengthy track record of success ... in clear, compelling language ... I encourage you to give a listen to our free podcasts.

Head to www.fool.com/podcasts, give them a spin, and you can subscribe there (at iTunes, Stitcher, or our other partners) if you want to receive them regularly.

It's money to your ears.

 


Compare Brokers