WorldWide Drilling Resource

32 APRIL 2021 WorldWide Drilling Resource® Gas and Oil Producing States Fear Permanent Ban Adapted from Information by the New Mexico Oil and Gas Association and the Petroleum Association of Wyoming The impact of the recent federal leasing moratorium has states concerned the consequences could be devastating. The New Mexico Tax Research Institute recently conducted an analysis of state revenue and spending. Research indicates gas and oil production on federal lands in the state accounted for more than half of the industry’s $2.8 billion in state revenue for fiscal year 2020. New Mexico is expected to be among the states hardest hit if the ban becomes permanent. Not only will the state come up short in revenue, but more than 62,000 hardworking Americans in New Mexico would lose their jobs by 2022. “Oil and gas development on federal lands is, and will be, a critical part of New Mexico’s economic and fiscal future. Our ability to develop resources on federal lands has a direct impact on the future of our state and the level of investment we’re able to provide in critical areas like education, health care, and public safety,” said Ryan Flynn, president of the New Mexico Oil & Gas Association. “Policies like a federal leasing ban only threaten to upend our economy, and keeping energy jobs and development here at home, rather than outsourcing them abroad, has an enormous ripple effect on the entire state. New Mexicans want to work, and those who work in this industry want to continue the safe and responsible energy production that our state depends upon.” New Mexico is not alone. Wyoming Governor Mark Gordon is also concerned saying, “Wyoming and other western states are particularly affected by . . . orders like this. The revenue from development on public lands drives the funding for schools, health care, and other key services.” In fact, according to a recent University of Wyoming Study, the state stands to lose $300 million in tax revenue each year and more than 33,000 jobs if the ban becomes a long-term policy. The Texas Oil and Gas Association (TXOGA) also warned state coffers and employment numbers in the Gulf Coast region would be decimated under a federal drilling ban, costing the state 120,000 jobs. TXOGA President Todd Staples also mentioned the significant improvements with the industry’s environmental performance stating, “Increased use of natural gas is the number one reason U.S. power sector carbon dioxide emissions have fallen 33% since 2007. Smart, science-based policies must be in place to ensure a cleaner, stronger, and better energy future here and across the globe.” The U.S. Chamber of Commerce issued a warning saying, Halting production won’t halt demand for the energy we need and the products we depend on. The U.S. oil and gas industry is the world’s leader in production and environmental stewardship, and now is not the time to increase our dependence on foreign sources. Demand isn’t likely to change. The question becomes - do we produce the energy we need here in the United States, or rely on foreign imports? G&O How did the Derrick get its Name? Adapted from Information by The American Oil & Gas Historical Society and People Pill In addition to being a fairly common male name with a few different spellings, a derrick is defined as a framework or tower over a deep drill hole for supporting boring tackle. However, the word derrick actually originated in the 17th century England. It all began when Elizabethan sailors hoisting cargo from docks along London’s Thames River thought the process had a macabre resemblance to the monthly hangings held at Tyburn, about two miles from Newgate Prison. The executioner, who served Queen Elizabeth I and King James I, was Thomas Derrick. Rather than tossing a rope over a beam, he created a beam with a topping lift and pulleys for his hangings. The name stuck, and the word derrick continues to be used for cranes and rig derricks.