American Oil and Gas Reporter - May 2022 - 81

to reach customers.
" Recent court rulings on pipeline projects,
such as those halting work on the
last 6% of construction of the Mountain
Valley Pipeline, and the Federal Energy
Regulatory Commission's addition of an
ambiguous climate change assessment
on new pipelines (only to follow with a
recent backtracking on that proposal,
magically referring to it as a draft, only
applicable to new projects), are the polar
opposite to developing policies that encourage
oil and gas investment, " PIOGA
relates. " Meanwhile, in states to our north
and east, political opposition to new
pipelines has resulted in huge price spikes
and local moratoriums on new natural
gas connections. Even if leaders in states
like Massachusetts, New Jersey and New
York started welcoming new pipelines,
opposition from activists and some local
communities make the prospect of building
them far from a solid bet. "
U.S. liquified natural gas exports can
reduce Europe's dependence on Russian
natural gas, the association observes, but
the country arguably is dragging its feet
on adding capacity. " Two new LNG export
terminals are being built here, with construction
yet to start on 14 FERC-approved
facilities, " PIOGA notes. " Six additional
terminals are in the early filing stages at
FERC. A total of 30 LNG import facilities
are proposed in Europe. How the United
States and EU countries proceed with the
future construction of those important infrastructure
projects is uncertain, but critical
to improving energy security in Europe. "
Whatever It Takes
PIOGA calls for significant work across
the country and Pennsylvania to encourage,
rather than stifle, capital investment in
oil and gas, " starting with a push to
ignore activists' pressure to divest from
the production of hydrocarbons. "
The association goes on to encourage
federal, state and local governments to
adopt regulations and ordinances that provide
operators with a predictable market. Moreover,
PIOGA insists, hurdles to new pipeline
projects should be replaced with policies
that recognize their critical importance in
connecting energy with markets.
" None of these (measures), of course,
can take place overnight, but the instability
created by Russia's aggressive war against
Ukraine puts a new focus on what the
United States needs to do to improve our
energy, economic and national security, "
PIOGA says. " The tragedy in Ukraine
has made it clear that oil and natural
gas-which together make up 56% of the
world's energy consumption-are truly
global commodities at the mercy of supply,
demand, weather and international crises
such as wars.
" Elected officials in the United States,
in the meantime, are trying to punch the
gas pedal by encouraging more production
here while also hitting the brakes through
myriad policies that make production and
transportation more costly or even impossible, "
the association concludes.
" There is not a panacea to the current
pricing situation, but it has shown how
critical domestic energy production is to
our national security and economy. " ❒
PHX Minerals Inc. Buys
Haynesville Royalties
OKLAHOMA CITY-PHX Minerals
Inc. has announced a mineral and royalty
acquisition targeting the Haynesville play
in Louisiana in which it has agreed to acquire
approximately 477 net royalty acres
located in three contiguous sections for
aggregate consideration of $4.3 million
in cash. The April 25 acquisition comes
on the heels of another PHX Haynesville
acquisition, announced on April 19, that
totaled $5.1 million.
❒
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American Oil and Gas Reporter - May 2022

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