Tag Archives: economics

Michigan Oil & Gas Monthly – March 2016

Crickets.   New oil & gas activity in the Michigan Basin is so slow through the first quarter of 2016 that the only thing you can hear at the OOGM permitting department is crickets.  2015 was the slowest year in Michigan oil & gas history for new permitting activity breaking the old record set in 1931.   In the first three months of 2015, the slowest year in Michigan history, the Office of Oil, Gas, & Minerals (OOGM) had received 24 applications and had issued 28 permits.  As of today, through the first three months of 2016, Michigan’s OOGM has received only two applications and issued only six permits.   New oil & gas permitting activity in 2016 is on pace to set the bar substantially lower than last year’s record as the slowest year ever.

As always, however, there’s a lot going on in Michigan oil & gas even if the permitting department of the OOGM is Continue reading Michigan Oil & Gas Monthly – March 2016

Landfill #27 At Wurtsmith Air Force Base

The Detroit Free Press published an article March 10, 2016 written by Keith Matheny that raises awareness about  groundwater contamination at Wurtsmith Air Force Base (WAFB) in Oscoda, Michigan.  You can read the Freep article by clicking here.  Keith’s article has current information and details about an upcoming “open house” being held by the MDEQ & US Air Force on March 23, 2016 in Oscoda in order to brief the public about groundwater contamination at WAFB.  Each day thousands of gallons of Pure Michigan freshwater soak through Landfill #27 and become contaminated water that flows south through Clark’s Marsh to the Au Sable River and then out to Lake Huron.  The extent of the contamination plume around WAFB is not fully understood but ongoing studies are underway to delineate the pollution.  A “do not eat” fish advisory was issued immediately after data first became available on May 2, 2012 that showed contamination levels at WAFB above GSI criteria.  It’s great to see Freep covering issues that raise awareness about important contamination “hot spots” in the Michigan Basin.   RMP has been working on a list of contaminated hot spots in Michigan and WAFB is on our top 10 list.   In this post, I will write a little bit about Continue reading Landfill #27 At Wurtsmith Air Force Base

2014 Top Oil, Gas, & NGL Producing Units in the Michigan Basin

Understanding Michigan hydrocarbon production data is important for anyone interested in understanding the economics of energy production.  Join us as we continue our journey to compile oil & gas production information that helps everyone understand more about energy, economics, and the protection of our public natural resources.   There’s a ton of information out there.   But how should we break it down in a way that tells us what’s really going on?  With everything happening across our communities, at the state level, at the federal level, and even internationally, where do you focus your effort?   What really matters?

Well, one thing that matters to everybody is money.  When you get all the fluff out of the way, you realize it’s been about money the whole time.   Dolla dolla bills y’all.   Money is a common denominator regardless currency, boundary, nationality, company, or even  country.  Furthermore, it doesn’t matter if you’re talking oil, natgas, coal, wind, or solar either;  energy’s common denominator is cost per unit.   Money is the great leveler.  But understanding money can get complicated.  It gets especially complicated to understand money when you consider the long term environmental impact costs of energy production.  For example, you could have high initial investment costs that have much better long term returns with respect to environmental impacts vs low initial costs that have large long term negative consequences on the environment.

Merit Energy's website can be found here: https://www.meritenergy.com/
Merit Energy’s website can be found here: https://www.meritenergy.com/

Just looking at the oil produced or gas produced won’t tell you the whole story about energy economics either.   It will, however, teach us just a little bit more about the big picture; it’s like another brick in the wall. To understand the money as it relates to oil & gas, we need to understand fundamentals like Continue reading 2014 Top Oil, Gas, & NGL Producing Units in the Michigan Basin