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A congressional committee approved legislation Wednesday that calls for at least one more oil and gas lease sale in the Gulf of Mexico over the next five years.

That’s compared to the 12 Gulf sales proposed in President Barack Obama’s five-year plan, which is slated to go into effect in late August.

Republican lawmakers on the House Natural Resources Committee favor an alternative version that schedules 13 lease sales for Gulf waters beginning this year and held periodically through 2017.

The committee voted 24-17 to advance the bill, which has been titled the “Congressional Replacement of President Obama’s Energy-Restricting and Job-Limiting Offshore Drilling Plan.”

Natural Resources Chairman Doc Hastings, a Republican from Washington, said the committee’s proposal is based on complaints aired by industry representatives and environmental groups.

“In stark contrast to President Obama’s plan that outsources American jobs and American energy, the bipartisan plan that passed today is an environmentally responsible drill-smart plan that will create jobs, grow our economy and lower gasoline prices with more American energy,” he said in a prepared statement.

When it was released last month, the president’s plan drew criticism from the Louisiana Mid-Continent Oil and Gas Association and the Louisiana Oil and Gas Association for not creating more exploration opportunities in the Gulf and elsewhere.

Obama’s five-year plan outlines lease sales for the Gulf and Arctic waters only, and the Atlantic and Pacific coasts would remain closed to oil and gas activity.

Hastings said the committee’s proposal would open up drilling all along the western and eastern coastlines.

Environmental groups such as the Natural Resources Defense Council also argued there weren’t enough safety regulations in Obama’s plan, especially in light of the 2010 BP oil spill.

Interior Secretary Ken Salazar said the administration is relying on “targeted leasing,” which means smaller areas of possible exploration that are expected to deliver big payouts based on the best available science and technology.

A vote by the full House is still needed on the committee’s proposal, and the traditional August recess is looming.

Regardless of what the House passes, the president maintains the authority to veto any legislation approved by Congress.

Sen. David Vitter, a Republican from Metairie, said Wednesday the president’s version would place a virtual moratorium on 85 percent of the nation’s offshore areas.

He said an alternative needs to be adopted to recover from the reductions Obama has made to his plan over the past year.

“Obama’s five-year lease plan for offshore production is only half of what the previous plan was.” Vitter said, “moving us in the complete wrong direction of where our energy production should be headed.”

Along with Sen. Jeff Sessions, a fellow Republican from Alabama, Vitter said he is filing his own leasing plan that would further open other areas in the Gulf and permit production in areas of the Pacific and Atlantic Oceans, as well as Alaska.

Vitter said it’s “more in line with the energy and economic needs of the United States” and a better deal for Louisiana.

He also pointed to a study released this week by the Congressional Research Service, which provides policy and legal analysis to members of the House and Senate.

Reviewing the past 37 years worth of five-year proposals, it found Obama’s most recent plan offers the fewest number of leasing opportunities dating back to former President Jimmy Carter.

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For over a hundred years in America, coal has been one of the leading sources for power generation. As the Industrial Revolution brought about changes to our transportation, agriculture and manufacturing systems across the United States, coal stepped in as the leader helping to phase out steam power. While coal has served it purpose, we are now seeing a potential rewrite in our nation’s energy future as natural gas emerges as a new player in power generation.

For the first time in United States history, last month natural gas generated as much electricity as coal, representing one-third of all US power. What does this mean for our state and our country? First, we have to understand that natural gas is now readily available here in Louisiana, and across the US. Louisiana boasts the largest producing natural gas field in the United States known as the Haynesville Shale. The Haynesville Shale is merely one of many producing natural gas fields in America. According to the IPAA, over the next twenty years, 49% of our nation’s natural gas supply will be attributed to the shale plays in the US. This homegrown natural gas will also help our nation transition from our dependence on foreign resources to fuel our country.

While the availability and abundance are important factors, natural gas is also a cleaner burning fuel than coal. Lawrence Cathles, a professor at Cornell University recently conducted a study taking a closer look at natural gas usage. He says, “Replacing coal with natural gas would cut about 40 percent of carbon emissions. When you burn natural gas it’s a cleaner burning fuel.” The oil and gas industry typically receives much negative press regarding the environment, but the numbers surrounding the cleanliness of natural gas speak for themselves.

Finally, what else makes natural gas the major player that it has become? The advanced technology of hydraulic fracturing and lateral drilling has revolutionized the oil and gas industry. It is now estimated that nearly 85% of all wells drilled today are completed using the method of hydraulic fracturing. While this process began in 1947, we have this spike in hydraulic fracturing due to technology, yes, but also due to the numerous shale plays that stretch across the US. As with many developing technologies, comes scrutiny by the federal government as well as the mainstream media. However, multiple federally funded studies have shown that there are no risks associated with hydraulic fracturing.

Natural gas is, no doubt, a game-changer for the energy future of the United States. As natural gas is a clean, readily available and abundant resource, it has the potential to surpass coal as the chief generator of power.

While this potential transition from coal to natural gas will not take place over night, the shale developments will continually offer a supply of natural gas that makes a transition truly possible. But as with any resource, responsible development and conservative consumption will play as a key factor as to when natural gas becomes THE resource for our nation.

Written by LOGA President, Don Briggs.

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A new program by the state Department of Natural Resources and the U.S. Geological Survey will more than double the number of wells in the state’s ground water program by the end of the year, officials say.

DNR announced earlier this month a three-year, $2.7 million program to beef up the state’s ground water monitoring for water quality, as well as quantity.

“Effective management of our ground water is a critical issue in our state, where it supplies half of our drinking water and more than two-thirds of our agricultural water demand,” DNR Secretary Scott Angelle said in a news release. “The most basic and crucial aspect of managing any resource is the ability to monitor it accurately, and using the best scientific tools to appropriately manage our groundwater is the most intelligent approach.”

The need for more ground water monitoring was outlined in an interim report by the state Water Resources Commission to the Louisiana Legislature.

“The data gathered from any increased monitoring project may be used to determine if more frequent or extensive water withdrawal reporting may need to be required for certain users and/or in certain areas,” according to the report.

About 200 wells are used for groundwater monitoring around the state, said George Arcement Jr., director of the USGS Water Science Center in Baton Rouge. The new program will bring another 200 wells into that program, which will bring the program back to the number it had before budget cuts in the mid 1980s forced a reduction in the number, he said.

No new wells will be drilled, he said. Instead, staff will determine where additional monitoring is needed, find existing wells in that area and work with the owners to get permission to include them for monitoring, Acrement said.

John Lovelace, assistant director of the USGS Water Science Center, said there are areas of the state where information about ground water is fairly thin and “this will help fill in those gaps.”

The expanded program includes the addition of 50 wells to be tested for chlorides, which is an indication of saltwater intrusion into a groundwater aquifer, Arcement said. That will double the number of wells monitored for chlorides in the state.

“The chloride monitoring, that network is really threadbare in the state,” Lovelace said.

In addition, the program will add 100 wells that will monitor for water quality in areas of the state where there is hydraulic fracturing going on, he said. Hydraulic fracturing for oil and gas involves drilling into a layer of shale and then drilling horizontally across the shale.

A liquid of water and chemicals are forced into this horizontal portion to crack the shale which allows oil or gas to be collected. Residents living near hydraulic fracturing operations around the country and environmental groups have expressed concern that this process can contaminate ground water.

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ST. FRANCISVILLE- People aren’t getting rich as fast as they want from a new oil find in the Florida Parishes.

Now, they want to know if their dreams will ever come true. A meeting Tuesday night helped get answers to questions about Tuscaloosa Trend Shale.

Some are worried it is moving north. Oil and gas reps explained to the crowd that multiple companies continue to express interest in leasing.

“That’s what everyone came out to hear tonight… ‘when is the check going to be in the mail box’” said Ragan Dickens with the Louisiana Oil and Gas Association.

“And, I think we have to… look at the positive outlook that’s here.”

It could be 18 months or longer before people know if the trend will pay.

There are 18 wells in West Feliciana Parish.

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Shell Monday effectively withdrew from a takeover battle for the UK’s Cove Energy, declining to take part in an auction for the Mozambique-focused explorer against rival and current highest bidder, Thailand’s PTT.

In a statement, Shell said it does not plan to increase its $1.8 billion bid for Cove or take part in a formal auction for the company, which holds an 8.5% stake in a massive gas discovery off Mozambique.

Under UK takeover rules, Shell and Thailand’s PTT had until market close Monday to submit final bids for Cove ahead of an auction starting Tuesday to resolve a seven-week deadlock for control of the company.

“This is a decision based on market valuation and the economic potential of Cove’s assets,” a Shell spokeswoman said, declining to comment further on the motives for Shell’s move.

Shell had been widely expected to increase its bid ahead of the deadline as part of plans to win a significant stake in a major Anadarko-led future LNG development off Mozambique.

Cove’s shares, which have been trading well above PTT’s 240 pence bid on expectations of a higher offer, fell sharply after the announcement and stood 13% lower at 238.50 pence by 1445 GMT, valuing the company at $1.82 billion.

Shell made its first cash offer for Cove in February and last raised its bid to GBP2.20/share on April 24. But that was trumped on May 23 when Thailand’s PTT outbid Shell by 9% with a rival cash offer of GBP1.22 billion ($1.88 billion). Shell’s original deadline for shareholders to vote was May 24, but the company has extended its offer four times since then without rising its bid.

PTT has also been extending its offer without sweetening its bid.

But neither company has made its bid for Cove final and Shell has received acceptances from just 3.27% of Cove’s shareholders. PTT’s higher offer has only won acceptances from 0.25% of Cove’s shareholders.

Technically Shell’s latest offer remains open until July 25 although shareholders are now expected to opt for PTT’s higher bid.

Last week, the UK Takeover Panel said that unless a third bidder for Cove emerges, the rivals were due to enter a formal auction process on July 17 if their current bids remained on the table by the close of Monday. BREAK FEE The UK’s Takeover Panel was not immediately able to clarify whether PTT will be declared winner of the auction by default Tuesday or whether the action will now be canceled, leaving Shell’s offer to expire next week.

Cove put itself up for sale in January after reporting one of the world’s largest gas discoveries in a decade offshore Mozambique.

Cove’s key asset is a minority stake in the huge Anadarko Petroleum-led natural gas find off Mozambique which could hold up to 60 Tcf of recoverable gas. The stake has made it an attractive target for companies looking to gain access to East Africa’s growing number of large natural gas discoveries. Cove has said it will be subject to a tax rate of 12.8% on the capital gains from selling its Mozambique assets.

Although Shell’s bid is lower than PTT’s, the major has said it would cover the tax bill to Mozambique, effectively raising its bid to around $2 billion, matching PTT’s offer.

In April, Cove agreed to pay Shell a break fee of GBP11.1 million if it was sold to a rival bidder, as part of Shell’s $1.8 billion agreed takeover deal at the time.

Cove was not available for comment.

Analysts have speculated that Shell could have improved its offer to around GBP3.00/share based on the recent resource upgrades at the Mozambique block.

The Golfinho and Atum discoveries in mid-May and early June, respectively, boosted gas reserves in the block further, increasing the value of Cove’s 8.5% stake and fueling expectations of a higher offer.

Anadarko now estimates that the gas potential of the Offshore Area 1 could be in excess of 100 Tcf, supporting expectations that the region will become a major future LNG export hub.

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Cheniere Energy Partners has received a loan of about $3.4bn for its planned Sabine Pass LNG liquefaction project in the US state of Louisiana.

The company said it is also working on commitments of another $200m, which is expected to close by the end of the month. 

Including previous equity commitments of $2bn, Cheniere said it has received around $5.4bn until now for the construction of first two trains of the project to be developed at the Sabine Pass LNG terminal in the US Gulf Coast region.

The facility would include four liquefaction trains, each with a nominal capacity of about 4.5 million tonnes per annum (mtpa).

Cheniere Energy Partners chairman and CEO Charif Souki said the company’s ability to access a very large credit facility will significantly reduce its costs of financing during construction. 

”We expect to reach a final investment decision and issue notice to proceed to Bechtel upon meeting all conditions precedent under the financial agreements, including, but not limited to, completion of the financing process with the Lenders and having all regulatory approvals in full force and effect,” Souki added. 

The company owns 100% of the Sabine Pass LNG receiving terminal, located on the Sabine Pass Channel in western Cameron Parish, whcih has regasification and send-out capacity of four billion cubic feet a day (Bcf/d) and storage capacity of 16.9 billion cubic feet equivalent (Bcfe).

Construction of the facility is slated to commence in 2012 with an initial phase of two trains, while two additional trains will be covered in the second phase in 2013.

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