William Anaya | Arnstein & Lehr
Often faced with one of her children’s’ tortured explanations, my mother would quip, “well, anything is possible.” In the same breath, she would quickly add, “but is it likely?” With regard to hydraulic fracturing, and the recent, largely unsupported claims associated with seismicity, I would add, “even if it is possible, is the risk significant/”
In The Headlines
Cases from the Shale Plays That Will Impact the Oil and Gas Industry
If there is a lesson to be learned from recent and pending cases in the shale plays, it might just be, “Proceed with Caution.” This is particularly true in states in the newer shale plays, like Ohio, where the local courts are revisiting settled rules governing mineral ownership, conflicts between local and state regulators, traditional lease terms, and even the very nature of oil and gas property rights. While the outcomes of these cases are unclear and sometimes even surprising, what is clear is they will impact operators far beyond the borders of the Utica and the other basins where they are decided.
Topic of Discussion
Francisco Rivero | Reed Smith & Mariano Ornelas | Ministry of Communications and Transportation (Mexico)
Mexico’s energy sector reformation has come in a series of waves ultimately resulting in a sea change to Mexico’s energy industry. The December 21, 2013 landmark reforms to Mexico’s Constitution were followed a short time later, on August 11, 2014, by the publication of Mexico’s state-owned petroleum company Petróleos Mexicanos (“Pemex”) new governing laws. After the dust has settled, Pemex had transformed from a one-time governmental monopoly with predominantly social functions and goals (including environmental preservation) into a dedicated productive enterprise.
FOR IMMEDIATE RELEASE San Francisco, November 17, 2014
The International Energy Agency estimates that $50 trillion of cumulative investment is needed to meet the current world demand for energy. At the same time, a recent Ernst & Young study found that 64 percent of oil and gas megaprojects face cost overruns averaging 58 percent of their budgeted value—and 68 percent of these projects experience significant overruns as well.
These figures clearly indicate that cost and schedule overruns on such projects have become an industry crisis, impacting not only shareholder value, but society as a whole.
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