Will the EPA Control the Future of U.S. Drilling?

Keith Kohl

Written By Keith Kohl

Posted March 20, 2010

Welcome to Energy and Capital’s weekend edition — our insights in investing, as well as the top stories this week from Energy and Capital and our sister publications. 

To drill or to not drill?

Believe me, over the next few years it won’t even be a question.

This week, we waited with bated breath as crude oil prices topped out at $83.09 per barrel on Wednesday. Were we finally going to watch it break out of this 9-month trading range?

Okay, you probably knew the answer to this one…

Prices dropped more than 3% between Wednesday and Friday.

So, the run to $90 per barrel is put off for another day. Meanwhile, the fate of U.S. drilling may be changing hands in the next few years.

The Environmental Protection Agency is out in full force. This time, it’s not the dirty oil sands of Alberta that’s the focus of their attack. The EPA’s latest crusade is over the hydraulic fracturing process used in oil and natural gas production.

A new study is underway by the EPA to evaluate the risk to groundwater supplies. At the forefront of the debate over drilling in the Marcellus Shale formation.

Sounds reasonable, doesn’t it?

Who can say no to protecting our health and a potential threat to water quality?

It’s not as simple as that, but I’ll let you decide which side of the fence you’re on.

One thing I do know is that letting the EPA control the future of hydraulic fracturing in the U.S. would be devastating. Although hydraulic fracturing techniques have been used for decades in the oil and gas industry, the latest attention is due to the rise in shale activity over the last few years.

Unfortunately, those shale plays happen to be one of the few things left that has keeps me optimistic about U.S. production. The U.S. shale basins aren’t just crucial to natural gas. Feel free to ask the state of North Dakota where it would be today without the developments made in the Bakken formation.

Enjoy your weekend,

keith kohl

Keith Kohl

Energy and Capital

P.S. In case you missed some of our top stories this week from Energy and Capital or our sister publications, I’ve included them below:

China Folds: How to Get Your Share of $273 Billion in Rare Earth Elements
Two months ago, Energy and Capital readers took advantage of a massive transfer of ownership over billions of dollars in rare earth elements. Through a twist of fate — and some good luck — a new development has emerged that is about to make investors a small fortune.

Alberta Canada’s Oil and Gas Industry: An Unconditional Surrender
Energy and Capital‘s  Keith Kohl reports on the latest royalty changes to hit Alberta’s oil and gas industry, paying special attention to how investors can capitalize on this fortunate turn of events.

The Death of Death: One Overlooked American Biotech
Without question, the world’s #1 killer is disease. It’s a fact of life we all worry about the most. But just because the body count rises each year doesn’t mean you need to live in fear. Far from it, actually. Energy and Capital reports on the one company saving lives every day by boosting immune systems 1,000 times over.

American Superconductor Stock: Avoiding a Bout of Bad Information
Editor Nick Hodge sheds some light on the misinformation spreading about one American superconductor stock getting a bad rap.

An Investment in Smart Grid Software: The Unsung Hero of the Energy Revolution
Energy and Capital Editor Chris Nelder takes a moment to reflect on the impact that software has had in the energy business — making things both easier and more profitable than ever.

The 2010 Housing Market "Shadow Inventory": A Rising Tide of Foreclosures
Wealth Daily Editor Steve Christ explains why the housing market is on the verge of collapse. Make sure you read Steve’s insight into this developing situation before you buy your next stock.

A Ballsy Solution to the Social Security Mess: Time to Sell U.S. Citizenship
In the face of a Social Security crisis, Wealth Daily Editor Christian DeHaemer offering one plan that could pull us out the mess.

Unique Trading Strategies for Today’s Market: We’ve Got Plenty of Ways to Make Money
Wealth Daily Editor Nick Hodge shows readers that no matter how bad things get, there’s always a chance to make money. Learn about Nick’s advice on how to beat today’s market.

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