Nations

Producers quickly protested President Obama’s pledge before the United Nations Tuesday to phase out subsidies for oil, natural gas and coal to help reduce greenhouse gas (GHG) emissions.

Regulators of energy commodities markets would do well to take a page from An Inquiry into the Nature and Causes of the Wealth of Nations in which 18th century economist Adam Smith writes of “the invisible hand” as a beneficial consequence of free markets, a witness told a Senate subcommittee last Wednesday. “It’s been often quoted; it’s been seldom read,” said Robert McCullough of McCullough Research.

Regulators of energy commodities markets would do well to take a page from An Inquiry into the Nature and Causes of the Wealth of Nations in which 18th century economist Adam Smith writes of “the invisible hand” as a beneficial consequence of free markets, a witness told a Senate subcommittee Wednesday. “It’s been often quoted; it’s been seldom read,” said Robert McCullough of McCullough Research.

Higher prices, increasing supply demands from developing nations, recently enacted U.S. regulations and changing public attitudes toward greenhouse gas (GHG) emissions and alternative fuels are all forcing changes in worldwide energy markets, the Energy Information Administration (EIA) said in its Annual Energy Outlook 2008 (AEO).

The Deh Cho First Nations sealed a key economic development deal with the Canadian government on Monday, resolving one of the major issues preventing development of the long proposed C$7 billion Mackenzie Valley natural gas pipeline.

The Independent Petroleum Association of America (IPAA), which represents the nations independent gas producers, came out strongly against a proposal to reinstate interstate pipeline surcharges on transported natural gas for the purpose of funding gas research and development (R&D) by the Gas Technology Institute (GTI). IPAA also said other associations representing major producers and large gas consumers were preparing to file comments with FERC in opposition to GTI’s funding proposal.

New Mexico Gov. Bill Richardson heads the slate of 2003-2004 Interstate Oil and Gas Compact Commission (IOGCC) officers. Richardson, a former United Nations ambassador and U.S. secretary of energy during the Clinton Administration, was chosen at the IOGCC’s midyear meeting in Williamsburg, VA. He will succeed the current chairman, North Dakota Gov. John Hoeven, at the IOGCC’s annual meeting in Reno in October. Donald L. Mason of Ohio was selected as vice chairman and Randy Ruedrich of Alaska was selected as second vice chairman. Mason, a member of the Public Utilities Commission of Ohio, is the current second vice chairman of the IOGCC. Ruedrich is a member of the Alaska Oil and Gas Conservation Commission. Alaska Gov. Frank Murkowski was named chairman-elect, and will serve as chairman in 2004-2005 along with Ruedrich as vice chairman and Don Likwartz of Wyoming as second vice chairman. Likwartz is state oil and gas supervisor for Wyoming. Wyoming Gov. Dave Freudenthal was tabbed to serve as chairman in 2005-2006. The IOGCC, founded in 1935 to ensure the efficient recovery of domestic petroleum resources while protecting health, safety and the environment, represents the governors of 30 oil and gas producing states. Seven states are associate members, and the IOGCC international program has seven affiliates. For more information on the IOGCC, visit its web site at www.iogcc.state.ok.us.

The Senate Energy and Natural Resources Committee has approvedthe nomination of Bill Richardson, currently U.S. ambassador to theUnited Nations, to become the next secretary to the Department ofEnergy (DOE).

The Senate Committee on Energy and Natural Resources hasscheduled a hearing for July 22 to take up the nomination of BillRichardson, current U.S. ambassador to the United Nations, to behead of the Department of Energy.