New Oil and Gas Law In Colorado
The state of Colorado adopted new rules Wednesday requiring more steel casing and cement in drilling wells to protect groundwater. The new law also requires that every well in the state be pressure tested every year.
According to the Colorado Oil and Gas Conservation Commission, the law is to guard the integrity of oil and gas wells and protect groundwater resources. The article also states that these are rules “industry and environmental groups both called the most comprehensive in the country“.
The COGCC adopted the rules unanimously on the online meeting service Zoom.
Energy Powers the Economy
Art Berman, Labyrinth Consulting Services, explains why the oil and gas industry is currently the leader in making the economy work in a universal way.
“You have to do work to survive, you have to work to get food,” Berman said. “Most of the work that is done in today’s world is done by oil, natural gas and coal.”
Industry Faces $1.8 Trillion Loss, Minimum
According to Yahoo! Finance, the coronavirus pandemic and the resulting oil price crash are set to wipe out as much as US$1.8 trillion from the revenues of oil and gas exploration and production companies this year – the worst-hit sector in terms of dollar revenue, Fitch Ratings said in a new report.
“The critical and expensive nature of oil and gas extraction (in terms of revenue, opex and capex) means that this sector dominates our lost-revenue projections, accounting for USD1.8 trillion of lost revenue globally in 2020. This is six times greater than the impact on the more visibly affected retail sector,” Fitch Ratings noted.
Globally, the COVID-19 pandemic is set to destroy as much as US$5 trillion in revenue for corporates which Fitch tracks in all sectors, the rating agency said.
There are many others, however, who are quick to point out that the Oil and Gas industry is more than just producers and midstream companies. There are 10-99 Truckers, cafe owners, sign companies and other ancillary companies who rely on the oil and gas industry for their lifeline.
Art Berman and Jason Spiess discussed this topic on The Crude Life.
The Crude Life Podcast can be heard every Monday through Thursday with a Week in Review on Friday.
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