One of the main issues of government is over reach, investing in issues and creating systems that they do not understand and have not built correctly. In the twentieth century we saw many companies built by capitalism, a person having an idea, marketing it, making a business, hiring others and from there making an ever growing company. Now, one the biggest forms of this was in the oil industry as men people set up to drill for the new black gold, now a lot of our world economy is based on this fuel, and the governments of most nations want more control over it. The number one issue is that governments don’t build companies, they don’t make business, and they cut jobs, and take the company and make it public. Now, I have no issue with the public sector, in fact it can create jobs and build a economy when things are bad, yet making a whole world public, doesn’t make things better. Making new governmental laws on how things are done, and making partnerships with companies that do what they want. It’s almost like training a dog, treating for rewards. Yet, business should not be on a treat, it should be on an open sector for consumers to decide its fate, which makes them work harder to provide products people would be interested in. Prices of gas draw customers, making a competition for oil a big deal through the last decade. Yet, we have an administration now that has “outlined” how our energy economy will go, even after its term is over. So, I have pointed out some issues, and outlined parts of this that are troublesome and make the whole energy sector a public sector scam. All of this comes from the blueprint for a secure energy future, or the public sector take over of oil, gas, and electricity. Now, we will jump around different parts of the blueprint so I will list the pages so you can see the direct info for your self.

The first place we start is at page 10 where it talks of a remake of the oil and gas production ways. Now in this part of the plan it lists the different government agencies that enforce the rules and legislation made off this plan, all of this basically comes from the recovery act.

All the important parts are in blue.

Ø Raising the Bar for Safety: In response to the Deepwater Horizon oil spill in the Gulf of Mexico, the Obama Administration has launched the most aggressive and comprehensive reforms to offshore oil and gas regulation and oversight in U.S. history. The reforms, which strengthen requirements for everything from well design and workplace safety to corporate accountability, are helping to ensure that the U.S. can safely and responsibly expand development of its offshore energy resources. These unprecedented reforms set standards and certification protocols for well design, testing, and control equipment and establish rigorous performance standards to reduce workplace error and require operators to maintain comprehensive safety and environmental management programs.

Already, the Administration has launched commonsense requirements to improve safety, including directing deepwater operators to demonstrate that they have the capability to contain a sub-sea discharge like the Deepwater Horizon oil spill. Since these important new standards were put into place, the Department of the Interior has continued to issue shallow water permits – and the pace of deepwater permitting has escalated now that operators have begun successfully demonstrating containment capability.

Ø Ensuring Efficiency and Integrity of Oversight: The Administration is reforming and strengthening offshore energy oversight by re-organizing the former Minerals Management Service into three separate agencies to eliminate conflicts, restore integrity by separating the functions of managing development of the Nation’s offshore resources: enforcing safety and environmental standards, and collecting revenues. Upon completion of the re-organization, the three separate agencies will include:

Office of Natural Resources Revenue (ONRR), which has already been established and is responsible for collecting royalties, rents, and other revenue;

Bureau of Ocean Energy Management (BOEM), which will be responsible for managing development of the nation’s offshore resources, including oil, gas and renewable resources and;

Bureau of Safety and Environmental Enforcement (BSEE), which will independently and rigorously enforce safety and environmental regulations. To foster a culture of safety and rigor, DOI is recruiting new expertise – including inspectors, engineers, and scientists – and establishing heightened ethical standards for all personnel.

More and more departments, more government rules, make a note of those three departments, through out the next parts their names will appear more and more. It is the base for a government control on the energy sector, first they need people to over see it, the main ones are listed here.

Now, we move on to another part once again the important parts will be in blue.

Ø Improving Offshore Drilling Safety, Well Containment, and Spill Response: The Administration established the Ocean Energy Safety Advisory Committee, which will bring government, industry, academia and other stakeholders together to drive advancements in safety equipment and technology.

Ø Identifying the Best Public Land Sites for Development: Domestic oil and gas development, both onshore and offshore, should take place in the right places to minimize harm to the environment as well as to public health and safety. Onshore, the Administration has implemented important reforms that require adequate planning and analysis to identify potential areas where development is most appropriate. These reforms have taken place while millions of acres of public land are offered for exploration and production. In 2010, 29 onshore oil and gas lease sales were held, covering 3.2 million acres, including one sale within the National Petroleum Reserve-Alaska encompassing approximately 1.8 million acres. In 2011, over 30 sales on public lands are expected. Offshore, in 2010, 37 million acres in the Gulf of Mexico were offered for lease. In addition, the Administration is developing a 5-year (2012-2017) comprehensive plan for offshore oil and gas exploration and production, which will ensure that areas with active leases, including the Gulf of Mexico and Alaska, are considered for further leasing and development. The strategy also calls for conducting studies to assess the potential oil and gas resources available in the Mid - and South Atlantic.

Ø Maximizing Operational Efficiency and Reducing Air Emissions: The Natural Gas STAR Program, a flexible, voluntary partnership between EPA and oil and natural gas operating companies, encourages companies—both in the United States and internationally—to adopt proven, cost-effective technologies and practices that improve operational efficiency and reduce methane emissions. This very successful voluntary program has 130 domestic partner companies and 8 international partner companies. EPA and partner companies have identified over 80 technologies and practices that can cost-effectively reduce methane emissions from the oil and natural gas sector. Natural Gas STAR partners reported domestic emissions reductions of 86 Bcf, worth over $421 million, in 2009.

Moving Forward

Ø Continuing to Ensure the “Gold Standard” for Safe and Responsible Oil and Gas Development: The Administration will continue to review the existing regulatory structures governing both onshore and offshore oil and gas development and identify potential efficiencies in those processes and any crucial gaps that pose safety or environmental risks.

Ø Providing Incentives to Spur Efficient Oil and Gas Development: The President recently directed the Department of Interior to determine the acreage of public lands (onshore and offshore) that have been leased to oil and gas companies and remain undeveloped. More than 70 percent of the tens of millions of offshore acres under lease are inactive—including almost 24 million inactive leased acres in the Gulf of Mexico, where an estimated 11.6 billion barrels of oil and 59.2 trillion cubic feet of natural gas of technically recoverable resources are going unused. Onshore, about 57 percent of leased acres – almost 22 million acres in total – are neither being explored nor developed.

Now, we have another issue, on how land owned by the public is handed over and we don’t even see a dime of it, it also helps people who sign on to their system profit, almost like bribery but hard to prove. With lots of standards and ways of creation and birth of a cash flow, its no way to regulate or control just how much they help companies that follow their every lead, even at the cost of a consumer. Giving away lands, cutting prices, sounds like a government ease in plan by using their hand picked companies to control the sector.

The American taxpayer – owners of our Nation’s public lands – have a right to expect that companies given access to public lands for oil and gas development will develop the resources efficiently or step aside to allow other companies to do so. The Administration is evaluating potential changes to elements of the leasing process that will encourage timely development. These potential changes include:

Using Shorter Lease Terms to Encourage Rapid Development: Adopting shorter lease terms, particularly onshore, would provide industry with a built-in incentive to develop leases more rapidly. Adopting this approach would also trigger the earlier release of non-producing leases, making them available to other companies who may be more willing or able to invest in their development. Offshore, the Administration has already implemented adjustments to lease terms for shallower waters. The terms of onshore leases, which currently are issued for standard 10-year terms, are constrained by a nearly century-old statute.

Rewarding Rapid Development with Lease Extensions. The Administration is taking a new approach to lease-extensions that rewards diligence by tying extensions more directly to lessee investment in exploration in development. For offshore leases, DOI has already begun to implement this new approach—for example, by requiring the spudding of a well before a lease extension is granted. DOI plans to build on recent reforms for both offshore and onshore leasing, so that when companies approach lease deadlines or apply for extensions, their record of demonstrating diligent exploration and development will help determine whether they should be able to continue using their leases, or whether those leases would be better utilized by others.

Rewarding Rapid Development through Rental Payments and Graduated Royalties: Although the price of oil and gas provides the primary financial incentive for current leaseholders to move forward in diligently investing in their leases, different fee and royalty structures may promote more expedited development. For example, Texas has used a graduated royalty rate system to provide developers with a discounted royalty rate if production occurs in the earlier years of a lease. The FY 2012 Budget proposes initial steps to encourage more rapid development.

Ø 'Developing Region-Specific Strategies to Facilitate Responsible Development': The Administration will continue to evaluate the feasibility of oil and gas development in frontier areas and develop appropriate strategies to facilitate responsible development in those areas identified as having great potential for domestic oil and gas production. Also, the Administration will integrate feasibility evaluations into the longer term Coast and Marine Spatial Planning process being undertaken as part of the National Ocean Policy.

Alaska – Onshore and Offshore Development: Facilitating responsible development in Alaska poses unique challenges, given that many areas of Alaska are frontier areas where less is known about the scope of economically recoverable oil and gas resources, the potential environmental and public health impacts of production, and exploration and development can be more difficult given the often-harsh conditions of the area. As a result, planning and exploration activities can take longer than in other areas of the U.S., making


the above incentives and other changes potentially inappropriate for Alaska. The Administration remains committed, however, to facilitating development in this region, which will require coordination across the Federal government. Accordingly, the Administration is creating a high-level, cross-agency team to access opportunities to coordinate and facilitate a more efficient offshore permitting process in Alaska, while ensuring that safety, health, and environmental standards are fully met.

Mid- and South Atlantic – Offshore Development: Ensuring that development takes place in the right ways and the right places is critical to the success of both renewable and conventional energy strategies. DOI is currently conducting environmental analysis on potential seismic testing in the Mid and South Atlantic planning areas, which would help determine the scope of potential recoverable resources in this region.

Ø Encouraging Responsible Development Practices for Natural Gas: Recent technology and operational improvements in extracting natural gas resources, particularly shale gas, have increased gas drilling activities nationally and led to significantly higher natural gas production estimates for decades to come. In order to take full advantage of this important domestic energy resource, we must proactively address concerns that have been raised regarding potential negative impacts associated with hydraulic fracturing (“fracking”) practices. That is why the Administration is taking steps to address these concerns and ensure that natural gas production proceeds in a safe and responsible manner. Initiatives supported by the Administration include:

Disclosure of Fracking Chemicals: The Administration is calling on industry to be more transparent about the use of fracking chemicals.

Leading by Example: In April, DOI will hold a series of regional public meetings to discuss the potential for expanding shale gas production on Federal lands. These events will provide a forum to develop a framework for responsible production on public lands.

Research: The Federal government will conduct research to examine the impacts of fracking on water resources. At Congress’ direction, EPA will continue with its study of fracturing impacts on drinking water and surface water, and DOE will likewise sponsor research on these issues.

Setting the Bar for Safety and Responsibility: To provide recommendations from a range of independent experts, the Secretary of Energy, in consultation with the EPA Administrator and Secretary of Interior, should task the Secretary of Energy Advisory Board (SEAB) with establishing a subcommittee to examine fracking issues. The subcommittee will be supported by DOE, EPA and DOI, and its membership will extend beyond SEAB members to include leaders from industry, the environmental community, and states. The subcommittee will work to identify, within 90 days, any immediate steps that can be taken to improve the safety and environmental performance of fracking and to develop, within six months, consensus recommended advice to the agencies on practices for shale extraction to ensure the protection of public health and the environment.

So, now we have shorter permits when some oil reserves last up to 20 years, outside people who have no idea about geology or the oil industry making laws and regulation on how this works and is handled. It wouldn’t matter if it was multiple sources, but most of these are government hired, and government mandated. It’s a new system of picking favorites and making them the top, instead of companies having to gain consumers to become big, now they just become buddies with the government, which strips the private sector in energy. Most oil producing companies also work with natural gas, so both sectors of energy are now dominated. My position is that if the government wants to control energy sector, make their own companies like the rest. Be a member of their own system, and play by their own rules instead of making friends out of corporations who can pay the fee. Is it now that government dictates even what is done with oil. My question is where does it end? What is the limit to what they can do, and what they can enforce and tell us to do, under their own created laws. You look at plans like this; it shows full government over reach. This is just a few parts of a 44 page plan that is listed under this administrations recovery act. As people we need to take action and stop over reach, and stop unfair control, other wise they will control us.

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