• 4 minutes Oil Price Editorial: Beware Of Saudi Oil Tanker Sabotage Stories
  • 7 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 11 minutes Magic of Shale: EXPORTS!! Crude Exporters Navigate Gulf Coast Terminal Constraints
  • 14 minutes Wonders of Shale- Gas,bringing investments and jobs to the US
  • 3 hours Evil Awakens: Fascist Symbols And Rhetoric On Rise In Italian EU Vote
  • 7 hours Trump needs to educate US companies and citizens on Chinese Communist Party and People's Liberation Army. This is real ECONOMIC WARFARE. To understand Chinese warfare read General Sun Tzu's "Art of War" . . . written 500 B.C.
  • 2 hours Old - New Kim: Nuclear Negotiations With U. S. Will Never Resume Unless Washington Changes Its Position
  • 2 hours Theresa May to Step Down
  • 12 hours Apartheid Is Still There: Post-apartheid South Africa Is World’s Most Unequal Country
  • 3 hours Is $60/Bbl WTI still considered a break even for Shale Oil
  • 2 hours India After Elections: Economy And Hindu Are The First Modi’s Challenges
  • 3 hours Total nonsense in climate debate
  • 10 hours Level-Headed Analysis of the Future of U.S. Shale Oil Industry
  • 39 mins Apple Boycott in China
  • 16 hours ARAMCO BOARD: Former Dow Chemical CEO Andrew Liveris: I want to help Saudi Arabia become a 21st century economy
  • 17 hours IMO 2020 could create fierce competition for scarce water resources
  • 17 hours IMO2020 To scrub or not to scrub
  • 18 hours Asia Oil Refiners Mull Run Cuts With Margins At 16 yrs. Low For Season
  • 16 hours Why is Strait of Hormuz the World's Most Important Oil Artery
Alt Text

How To Play A Recovery In Oil Prices?

A realistic correction in the…

Alt Text

What The Market Is Overlooking In The Occidental Deal

Occidental Petroleum has caught a…

Alt Text

This Supermajor Is Leading The Energy Sector

This supermajor has been standing…

Dave Forest

Dave Forest

Dave is Managing Geologist of the Pierce Points Daily E-Letter.

More Info

Trending Discussions

The First Real Crisis Hits Shale Drilling

"Crisis" may be a little hyperbolic. But shale production of oil and gas in America suddenly got a lot riskier this week.

That's because of a landmark decision from one of the highest state courts in the land. Upholding the right of individual towns to regulate shale drilling, trumping state or federal regulatory regimes.

The ruling came down yesterday in New York. Where the State Court of Appeals voted 5-2 to reject challenges to fracking rules imposed on the oil and gas industry by two municipalities in the state: Dryden and Middlefield.

The saga started in 2011. When the two towns amended their zoning laws to prohibit fracking--citing the technique as a risk to the "health, environment and character" of the communities.

Would-be local drilling companies took issue. And filed suit against the town councils, looking to overturn the rules on the grounds that state rules should preempt local regulations.

But that argument has now died on the table. A lower court previously rejected the drillers' arguments, finding that municipalities indeed have the right to regulate drilling within their boundaries. And this week's decision exhausts the final appeal in the case--siding once and for all with local officials.

In the case of New York the effect is somewhat moot. Given that the state has had a complete moratorium on fracking in place for years--with no development of shale resources having yet taken place.

But the implications of the case for other shale-producing regions are critical. With the decision setting a precedent that will now be more difficult to argue anywhere in the country.

This will likely give towns much greater power in setting their own rules going forward. Potentially leading to more anti-fracking rules in places like Pennsylvania and Ohio--where a number of states have recently made such moves.

It looks like this patchwork of regulation is only going to get more fragmented. We'll see what the ultimate effect is on drilling and production.

Here's to acting local,

By Dave Forest




Download The Free Oilprice App Today

Back to homepage

Trending Discussions


Leave a comment
  • Lee James on July 08 2014 said:
    Things look a little different when other folks are looking to make money with your backyard. What's your backyard and a little drinking water worth? Interesting valuation problem.

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News