Mr. Erik Milito - The House Committee on Natural Resources ...

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www.woodmac.com Current Path Case - Assumptions • <strong>The</strong> “Current Path Case” assumes the following policy and regulatory initiatives: • Continued “slow walk” of Federal permitting for offshore Gulf of Mexico • <strong>The</strong> case assumes an increase from current offshore exploration and development activity levels, but not back to pre-Moratorium rates • Tighter Federal hydraulic fracturing and water disposal regulations which are beyond the current state regulations • Slow down of onshore drilling due to increased cost of well completions. Results in a negative impact on development economics • No opening of new areas for exploration and development • No new exploration and development in frontier areas of Alaska, Eastern Gulf of Mexico, Atlantic and Pacific offshore, and Federal Rockies • Restrictions on new pipeline development from Canada • Curtailment of oil sands pipeline infrastructure into the U.S.. No development of the Keystone XL pipeline or other future Canada to U.S. pipelines © Wood Mackenzie 9 Delivering commercial insight
www.woodmac.com Current Path Case – Assumptions (continued) • In developing the “Current Path Case” Wood Mackenzie has made the following assumptions: • Onshore U.S. • Slowdown of the development of onshore plays to a rate below current company plans. This is due to increased cost resulting from slower permitting and a heavier regulatory burden. Key assumptions are that leasing and permitting continues at a slower pace relative to historical trends as borne out by a time series of BLM leasing and permitting data, and a heavier regulatory burden adds to drilling and completion costs • <strong>The</strong> impact of increasing costs is to increase the breakeven economics of all U.S. wells by 30 cents per mcfe relative to the Development Policy Case. This has two effects: • A number of marginal plays become sub-economic (primarily gas plays), i.e. their economics fall below a 15% hurdle rate. It is therefore assumed that no further drilling will occur in these plays • A U.S.-wide slowdown in drilling activity. This results in a 4% decline in drilling across all remaining oil and natural gas plays which have not become sub-economic as a result of increased cost • No lifting of moratorium on shale gas development in New York • Gulf of Mexico • In the future the leasing of deep water acreage will continue, but at 50% of the pre-Moratorium rates • Exploration activity picks-up from current level, but only recovers to 50% of the pre-Moratorium drilling rates, approximately 20 wells per year • Alaska • No drilling activity offshore Alaska, ANWR or the NPRA • No future development activity in the currently closed areas © Wood Mackenzie 10 Delivering commercial insight
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oost domestic production by four mi
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astonishing, with an estimated 17,0
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industry’s development costs thro
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Environmental Protection for Onshor
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Environmental Protection for Onshor
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ENVIRONMENTAL PROTECTION FOR ONSHOR
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Hydraulic Fracturing Operations—
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Special Notes API publications nece
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Contents 1 Scope . . . . . . . . .
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Hydraulic Fracturing Operations—W
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HYDRAULIC FRACTURING OPERATIONS—W
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Bibliography [1] Interstate Oil and
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2009 Publications Order Form Effect
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1220 L Street, NW Washington, DC 20
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Contents January 2012 EXECUTIVE SUM
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January 2012 EMPLOYMENT, GOVERNMENT
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January 2012 These
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January 2012 Figure 1: Natural Gas
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1.1 New Federal Drilling Leases Iss
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1.2 Permits to Drill: Down 39% Janu
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1.3 New Wells Drilled on Federal La
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January 2012 2 ADVERSE FEDERAL LAND
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January 2012 3 Economic Projections
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3.1 Overview of Baseline and Altern
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January 2012 TABLE 3 - NET (Alterna
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3.3 January 2012 Increased Producti
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January 2012 The n
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January 2012 Figure 17: Total Emplo
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January 2012 Table 9 shows what the
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January 2012 4 CONCLUSION T
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January 2012 5 APPENDIX: Data and M
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TABLE 11 - Baseline and Alternative
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5.3 Employment January 2012 Employm
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5.4 State Severance and Ad Valorem
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Natural Gas Production, billion cub
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Number of Wells Started (Spud) on F
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Net (Alternative Minus Baseline) Ja
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Net (Alternative Minus Baseline) Ja
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Federal royalties of production of
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Imports from Rest of the World 38%
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Water Management Associated with Hy
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Contents Executive Summary . . . .
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considerations). A hierarchy of pot
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2 API GUIDANCE DOCUMENT HF2 2.8 flo
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Bibliography [1] American Petroleum
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26 API GUIDANCE DOCUMENT HF2 [32] H
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THERE’S MORE WHERE THIS CAME FROM
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Practices for Mitigating Surface Im
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Contents Executive Summary . . . .
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proactive in communicating to, and
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Practices for Mitigating Surface Im
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PRACTICES FOR MITIGATING SURFACE IM
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2010 PUBLICATIONS ORDER FORM Effect
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Product No. GHF301
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www.woodmac.com Project Background
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www.woodmac.com Key Results ACCESS
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www.woodmac.com Scope of Study - Ac
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www.woodmac.com Methodology Access
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www.woodmac.com Methodology Access
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www.woodmac.com Access Scenario - E
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www.woodmac.com 2 Increased Tax Sce
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www.woodmac.com Methodology - Tax S
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www.woodmac.com Results Taxes Scena
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www.woodmac.com Tax Scenarios - Gov
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www.woodmac.com Access Scenario - R
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www.woodmac.com Tax Scenario - Base
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www.woodmac.com Tax Scenarios - Pro
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www.woodmac.com Access Scenario - V
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www.woodmac.com Tax Scenario - Esti
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Tax Scenario - Estimated Impacts on
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www.woodmac.com Wood Mackenzie Disc
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Isolating Potential Flow Zones Duri
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Contents 1 Scope . . . . . . . . .
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Isolating Potential Flow Zones Duri
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ISOLATING POTENTIAL FLOW ZONES DURI
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Annex B (informative) Well Planning
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Mr. Erik Milito - The House Committee on Natural Resources ...

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