Policy

Increased organic capital spending, greater commodity price volatility, changing ownership structures and developing regulatory policy are expected to continue to have an impact on credit ratings in the midstream energy sector for the remainder of 2006 and into 2007, Standard & Poor’s Ratings Services said Thursday in a new industry “report card.”

Citing the U.S. natural gas futures market’s volatility over the past few years in spite of the market’s underlying fundamentals, the National Legal and Policy Center (NLPC) called on regulators Tuesday to investigate volatility levels and possible manipulation of the market.

The Energy Policy Act of 2005 (EPAct), which was signed into law one year ago, has “permanently changed” FERC, making it for the first time an enforcement agency with real penalty authority, said Chairman Joseph Kelliher last Tuesday.

The Energy Policy Act of 2005 (EPAct), which was signed into law one year ago, has “permanently changed” FERC, making it for the first time an enforcement agency with real penalty authority, said Chairman Joseph Kelliher Tuesday.

It’s premature to determine the impact of the Energy Policy Act of 2005 (EPAct) on oil and gas development in the Rocky Mountain region, but experts told a Senate Energy & Natural Resources Committee hearing Tuesday they believe that at least one provision shows the promise of increasing the nation’s supply of gas and oil while also improving environmental oversight. Several panelists, however, had their doubts.

At a meeting where natural gas dominated the agency’s agenda, FERC on Thursday looked favorably upon industry’s request for permanent regulatory and policy changes to spur the construction of interstate natural gas pipeline mainline expansions, new storage capacity and takeaway facilities for liquefied natural gas (LNG) import terminals.

The Treasury Department is seeking to repeal a provision of the Energy Policy Act of 2005 (EPAct) that gives natural gas utilities faster depreciation — 15 years rather than 20 years — of their pipeline distribution facilities through January 2011. The agency also proposes to strip away tax incentives for oil and gas exploration.

President Bush’s State of the Union address Tuesday night was notable more for what it didn’t say on energy policy — it failed to make any reference to domestic oil and natural gas drilling.

The House Resources Committee task force’s initial recommendations for improving the project review process under the National Environmental Policy Act (NEPA) could have a “significant,” potentially favorable benefit for the energy industry, according to a Washington, DC-based law firm that specializes in energy and environmental legal issues.