A new proposal, HB 2615, endorsed by both industry and environmental groups has received bipartisan support in the Illinois State House which may lay the groundwork for a regulatory path forward on the often controversial issue of hydraulic fracturing. According to news reports, the filed bill - titled the "Hydraulic Fracturing Regulatory Act" - would require oil and natural gas operators to test water in all phases of drilling, require chemical disclosure of fracking solutions, address air pollution concerns, and hold companies liable for water contamination found after drilling operations.

On Tuesday, the Energy Information Administration (EIA) announced that crude oil production in the U.S. reached a 15-year high with nearly 6.5 million barrels per day in September. The boom was attributed to the use of hydraulic fracturing and horizontal drilling techniques which yielded a 16 percent increase, or an extra 900,000 barrels per day, from September 2011 levels.

Stateline Midwest ~ September 2012

The long-simmering fuel vs. food debate has reached a boiling point, as the result of drought conditions that have raised corn prices and precipitated requests for the EPA to adjust the federal Renewable Fuels Standard.

On Monday, Secretary of Interior Ken Salazar announced a management plan that would remove roughly half of the acreage available for oil and natural gas drilling in the 23 million-acre National Petroleum Reserve in Alaska. Under the proposal, drilling activities and potential pipeline construction development could occur in the remaining 12 million acres of the reserve that may connect exploration projects waiting federal approval in the Chukchi Sea.

Alaska State Representative Charisse Millett and the Chair of the Alaska Oil and Gas Conservation Committee, Cathy Foerster, testified at a hearing before the U.S. Senate Committee on Energy and Natural Resources criticizing the very slow pace of plugging 136 abandoned wells overseen by the Bureau of Land Management (BLM) in the National Petroleum Reserve. The Committee's Ranking Member, Senator Lisa Murkowski stated, “This is the type of crime the federal government would fine a private company millions of dollars for, but since these wells were drilled and are owned by a federal agency they are allowed to willfully ignore the law...Only the federal government could get away with this.”

A report released last week by the Energy Information Administration (EIA) found that U.S. distillate fuel exports hit a record high in April, with 981,000 barrels per day being shipped overseas. That same government report estimated that foreign distillate imports fell to their lowest level since 1985.

Hydraulic fracturing and horizontal drilling have created new domestic energy frontiers and made the United States a net energy exporter for the first time in more than 60 years. Although the process has been used for decades to stimulate production from declining wells, new technological advancements have rapidly accelerated the development of unconventional reserves of fossil fuels that were either unknown or considered uneconomic just a few years ago. Despite the excitement over the potential economic benefits are underlying public safety and environmental concerns.

 HB 1487 went into effect today, which prevents the state of New Hampshire from joining a national, regional, or state low carbon fuel standard (LCFS) without first receiving legislative approval. Although the legislation does not prevent agency staff from participating in discussions about LCFS related topics, it could have a significant impact on the development of a regional agreement that critics have often referred to as a "liquid cap and trade program."