Rep. Scott Tipton was chairman of a hearing concerned with how federal regulations are hurting the oil and gas industry. The top five oil and gas companies made over $67 billion in profits the first half of this year. Are regulations really hampering their industry?
There was a lot of talk about how oil and gas exploration could create thousands of jobs, but can’t because of federal regulations. How about taking some of this profit and hiring people?
There were comments about the BLM hindering the permitting of natural gas wells, with stories that some permits take years to complete. The permitting system has to be the cause of the industry’s woes. However, BLM officials recently testified that the oil and gas industry has about 7,000 undeveloped leases where it can drill.
Could the reduction in the price of natural gas from about $8 per thousand cubic feet in 2008, to about $4 now have anything to do with fewer applications being submitted? Is this reduction in price caused by regulations? The market is controlling their product and now industry is complaining.
The number of car miles traveled in this country has been declining for the past four years and thus there is a glut of gasoline in this country. Again the demand for their product is declining. Is this caused by unfair federal regulations? It seems to me regulations are just a scapegoat for the oil and gas industry’s predicament.
Was Tipton holding a hearing or a campaign event?
