March 06, 2013 02:19 PM UTC

Economics and geology driving factors behind where drilling happens, not policy

• 1 Comments
• by: checks-and-balances

Colorado just had a record breaking year for oil production. According to the Colorado Oil and Gas Conservation Commission director, the state has “been adding at least 2,000 new wells per year for the past nine years.” Oil production in the U.S. is at the highest levels in 20 years. New Department of Interior data shows oil production on federal lands is up 7 percent in 2012.

But these facts haven’t stopped the oil and gas industry and their supporters, like Rep. Doug Lamborn, from spinning tall tales about how red tape and the Obama Adminstration are putting up obstacles to drilling. (Speaking of tall tales, Rep. Lamborn chairs a subcommittee hearing next week, where he’ll likely peddle additional taxpayer-funded handouts to Big Oil for more failed oil shale speculation on public lands as key to our energy future.)

A new report from the Center for Western Priorities (CWP) – Follow the Oil – shows that industry claims that the Obama Administration is putting up obstacles to drilling don’t hold up.  It turns out that technology, geology and price are the key factors that drive where and how much industry drills.

According to the report:

“A combination of low natural gas prices and new shale extraction techniques inspired industry to look toward a more profitable commodity: shale oil. As a result, oil and gas companies moved their operations to areas where shale oil was abundant and offer the greatest potential profit.

The large majority of shale oil plays exist under nonfederal lands. Even in the Rocky Mountain West, where more federal land is located, 89 percent of the shale oil and mixed oil and gas plays are under nonfederal lands.”

Check out this map from Follow the Oil –which clearly shows that most oil and gas plays are located on nonfederal lands.

Read the complete report.