American Oil and Gas Reporter - June 2016 - 22

IndustryDigest
University posted online A Historical
Review of Induced Earthquakes in
Texas, which suggests 26 percent of 162
earthquakes it analyzed that measured
3.0 magnitude or greater and struck
Texas between 1975 and 2015 "almost
certainly" were induced. An additional
33 percent "probably" were induced,
while 28 percent "possibly" were
induced, according to the report.
The researchers based their
conclusions on a five-question scoring
system that considered timing of the
seismic event, spatial correlation to oil
and gas activity, depth of the quake,
faulting, and whether "credible
published reports" linked the earthquake
to oil and gas operations.
The report "ignores several important
factors and presents subjective
assertions," responds Texas Independent
Producer & Royalty Owners Association
President Ed Longanecker. He points
out, "None of the questions focus on
subsurface pressures or fluid movements,
which the U.S. Environmental Protection
Agency, academics and numerous state
regulatory agencies all have
recommended as key elements (for)
determining whether a particular event
was induced."
Alex Mills, president of the Texas
Alliance of Energy Producers, dismisses
the report as "nothing more than a
recount of alleged connections."
"The title of the paper itself
proclaims it is nothing more than a
historical rendition of what may have
happened or could possibly have
happened," Mills adds. "The paper
acknowledges the basis for its
conclusions is purely subjective, and in
fact, admits its categorization of seismic
events (is) arbitrary."
Longanecker also challenges the
report's contention that the Texas
Railroad Commission has been "slow to
acknowledge that induced earthquakes
occur in Texas."
Longanecker cites the RRC's 2014
amendments to Statewide Rules 3.9 and
3.46, which among other things, require
operators to collect disposal well

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volumes and pressures in addition to
historical data on seismic events in
proximity to a disposal well, and that
authorize the commission to modify,
suspend or terminate a disposal permit.
"The report seeks to pre-empt
proactive research designed to identify
the true cause of seismic events in
Texas," Longanecker states. "While the
report makes reference to some of these
initiatives, the data presented are
premature, deficient in making a
definitive connection to oil and natural
gas activities, and unnecessary, given
the amount of focus, structure and
funding allocated to this issue." ❒

Texas Alliance Resolution
Upholds U.S. Production
Against Cartel's Strategy
WICHITA FALLS, TX.-During the
Board of Directors Meeting that
concluded its 2016 annual convention,
held April 19-20 in Wichita Falls, the
Texas Alliance of Energy Producers
approved a resolution urging
policymakers to support the state's
independent producers, especially
against foreign countries' market
manipulation.
The resolution, which the Alliance
announced in a press release the
following day, emphasizes the
importance of oil and gas to the Lone
Star State's economy, highlights the
importance of Texas' more than 100,000
marginal wells, and asserts that those
wells have been placed at risk because
U.S. independents compete in a
worldwide market with production from
the Organization of Petroleum
Exporting Countries.
The resolution goes on to say that
"this cartel has stated publicly that it
intends to drive the 'high-cost
production in the United States' out of
business by producing an excess supply
of crude oil, forcing prices below
recovery price. Therefore, the Alliance
calls on state and federal policymakers
to:
* "Enact provisions that will reduce
overhead costs that will restore jobs that
have been lost because of global oil
market manipulation;
* "Protect the correlative rights of
the citizens of Texas; and
* "Prevent waste of the state's
valuable natural resources."

For more on the Alliance's
convention, see the coverage beginning
on page 105. ❒

Gas Storage Levels
Increase By 350 Bcf
WASHINGTON-Underground
natural gas storage in the United States
stood at 2.907 trillion cubic feet on May
27, 35.0 percent above the five year
average, according to the U.S. Energy
Information Administration. That was
up 350 billion cubic feet from the 2.557
Tcf in storage on April 22, which was
48.2 percent above the five-year
average. The May 27 storage number
was 712 Bcf more than a year ago,
when gas storage stood at 2.195 Tcf.
According to EIA, gas storage in the
East Region was 537 Bcf on May 27,
16.0 percent above the five-year average
and 106 Bcf more than on April 22,
when storage stood at 431 Bcf, which
was 29.8 percent above the five-year
average. East Region gas storage on May
27 was 107 Bcf more than a year ago.
Gas storage in the Midwest Region
stood at 655 Bcf on May 27, 41.5
percent above the five-year average and
101 Bcf more than the 554 Bcf in storage
on April 22, which was 58.3 percent
above the five year average. May 27 gas
storage in the Midwest Region was 234
Bcf more than a year ago.
In the Mountain Region, EIA says,
gas storage was 178 Bcf on May 27,
41.3 percent above the five-year average
and 23 Bcf more than the 155 Bcf
stored on April 22, which was 38.4
percent above the five year average. Gas
storage in the Mountain Region was up
44 Bcf from a year ago.
Gas storage in the Pacific Region
was 304 Bcf on May 27, 16.0 percent
above the five-year average and 27 Bcf
more than the 277 Bcf stored on April
22, which was 26.5 percent above the
five-year average. Pacific Region gas
storage on May 27 was down 9 Bcf
from a year ago.
In the South-Central Region, gas
storage levels on May 27 were 1.233
Tcf, 46.6 percent above the five-year
average and up 93 Bcf from the 1.140
Tcf in storage on April 22, which was
60.1 percent above the five-year
average. The May 27 gas storage level
for the South-Central Region was up
336 Bcf from a year ago. ❒
American Oil and Gas Reporter - June 2016

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