President Obama's Energy Security Trust a potential boon to oil and gas industry

In the State of the Union address Tuesday night, President Obama recognized the impact of the oil and gas industry, specifically the natural gas boom that has unfolded in the unconventional resources space across North America in recent years. With that in mind, Obama outlined a plan to use a portion of revenue generated from oil and gas drilling on federal lands for research for alternative fuel technology.

President Obama

Obama’s proposal calls for the diversion of these oil and gas drilling revenues into an Energy Security Trust that would fund research for American production of renewable energy and help shift cars and trucks from the use of oil. Such measures may "free" families and businesses "from the painful spikes in gas prices," he said.

Obama recognized the natural gas boom as bringing cleaner power and greater energy independence to the US and said that the administration “will keep cutting red tape and speeding up new oil and gas permits.” 

Obama’s recognition of the transformative nature of the US oil and gas revolution is good news for both exploration and production companies and oilfield service companies as the Energy Security Trust could expand onshore and offshore leasing, said Global Hunter Securities in a note to investors Thursday.

“Similar programs have been proposed in the past, requiring the revenue to come from projects where drilling is currently off-limits. Expanding oil and gas drilling helps to alleviate the fear that budgets will be cut for existing alternative energy projects. Not yet the Grand Bargain on energy we’re hoping for, but on the face of it this is the kind of proposal that could get support on both sides of the aisle,” noted the analysts.

Related Articles

Fortis Energy expands well services to Rocky Mountain region of North Dakota

12/09/2013

Fortis Energy Services Inc. has expanded its area of operations to include the Williston Basin of North Dakota.

OFS Energy Fund invests growth equity in Davis Chemical Services

11/22/2013 OFS Energy Fund (OFS) has invested convertible preferred growth equity in Davis Chemical Services LLC (DCS) to strengthen DCS’s balance sheet as it expands its service offerings into electric wirel...

SCF Partners invests in Oil Patch Group

11/21/2013

SCF Partners has made an investment in Houston-based Oil Patch Group Inc.

Rowan provides fleet contract status update

10/26/2013

Rowan Companies plc has issued its monthly fleet status report, updated as of Oct. 24. 

Schlumberger releases new HD imaging-while-drilling service

09/30/2013 Schlumberger has released the MicroScope* HD high-definition imaging-while-drilling service. The MicroScope HD service provides logging-while-drilling (LWD) imaging for reservoir description to ena...

More Oil & Gas Financial Articles

Fortis Energy expands well services to Rocky Mountain region of North Dakota

Mon, Dec 9, 2013

Fortis Energy Services Inc. has expanded its area of operations to include the Williston Basin of North Dakota.

OFS Energy Fund invests growth equity in Davis Chemical Services

Fri, Nov 22, 2013

OFS Energy Fund (OFS) has invested convertible preferred growth equity in Davis Chemical Services LLC (DCS) to strengthen DCS’s balance sheet as it expands its service offerings into electric wireline services.

SCF Partners invests in Oil Patch Group

Thu, Nov 21, 2013

SCF Partners has made an investment in Houston-based Oil Patch Group Inc.

Rowan provides fleet contract status update

Sat, Oct 26, 2013

Rowan Companies plc has issued its monthly fleet status report, updated as of Oct. 24. 

Schlumberger releases new HD imaging-while-drilling service

Mon, Sep 30, 2013

Schlumberger has released the MicroScope* HD high-definition imaging-while-drilling service. The MicroScope HD service provides logging-while-drilling (LWD) imaging for reservoir description to enable detailed fracture characterization and completion optimization in conductive drilling fluids for all well types, including horizontal and highly deviated wells.

Most Popular

Oil & Gas Jobs

Search More Job Listings >>
Subscribe to OGFJ