Is Hydraulic Fracturing Facing More Regulations?
Frack the BLM
The U.S. Bureau of Land Management in Wyoming has some issues with enforcing its hydraulic fracturing rule.
This rule, applies to oil and gas drilling on federal property. It is meant to place stricter regulations and standards for hydraulic fracturing.
Apparently, Judge Scott W. Skavdahl for U.S. District Court for Wyoming has said “Congress has not authorized or delegated to BLM authority to regulate and, under our constitutional structure, it is only through congressional action that BLM can acquire this authority”.
The rule was meant to become effective on June 24th, but on June 23rd, the same judge temporarily blocked its implementation. Also, this latest order blocks the rule from going into effect while pending litigation.
This injunction also applies nationwide, too.
Now, people are clamoring that the rule is a serious case of overreach on the part of the federal government, while others are confident that there is no evidence that this rule is necessary or significant, or that it will erase jobs.
Thing is, this rule cannot be implemented until the case has been concluded.
Look, you and I both know that hydraulic fracturing has been a source of persistent frustration for any environmentalist with an agenda, or anyone concerned with the practice that involves injecting millions of gallons of fluid into oil and natural gas wells.
That criticism, however, clearly won't deter Judge Skavdahl.
So, let's chalk this up as a win for the IPAA, which remains adamant that the BLM's rule is based on no evidence.
Then again, that's the kind of argument we should expect from the Independent Petroleum Association of America, isn't it?
What we do know, however, is that the practice of hydraulic fracturing is a critical part of extracting oil and natural gas from today's most prolific tight oil plays in the lower-48 states.
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Until next time,
A true insider in the energy markets, Keith is one of few financial reporters to have visited the Alberta oil sands. His research has helped thousands of investors capitalize from the rapidly changing face of energy. Keith connects with hundreds of thousands of readers as the Managing Editor of Energy & Capital as well as Investment Director of Angel Publishing's Energy Investor. For years, Keith has been providing in-depth coverage of the Bakken, the Haynesville Shale, and the Marcellus natural gas formations — all ahead of the mainstream media. For more on Keith, go to his editor's page.
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