Will the Government Work With Energy Companies? – ConocoPhillips (COP), TransCanada Corporation (USA) (TRP), Chesapeake Energy Corporation (CHK)

Page 1 of 2

ConocoPhillips (COP) Selling Cedar Creek Assets to Denbury (DNR) for $1.05 BillionWe have an amazing opportunity to transform our nation from one that imports energy into one that’s independent from the whims of the world’s oil markets, possibly even one that others depend on for their energy. According to ConocoPhillips (NYSE:COP) CEO Ryan Lance, “The new landscape is like someone picked up the energy world and tilted it.” As the CEO of the largest independent oil and gas company in the country, that’s saying a lot. His company has operations spanning the globe; however, he sees some of its greatest potential here at home. That’s why his company is spending more than $25 billion over the course of its five-year plan to grow its U.S. production, but the company could spend more, given the right opportunity. According to some of his other comments at the CERAWeek conference, he believes the U.S. government needs to work with the energy industry to unlock our resources to meet our future demand.

Given the sometimes hostile relationship between the government and the energy industry, it’s going to take a concerted effort to get everyone on the same page and working together. There’s a lot at stake here, not only in future potential but also in costs we’ve already incurred as a nation. It’s no secret that a good portion of our foreign policy has, in the past, been driven by our need to secure access to foreign oil.

That being said, this is not a cut-and-dried issue. Simply accessing the riches that lie underneath our soil puts our environment at risk. There are unresolved issues with water quality, with fracking fluids, and in the overall protection of nature that need to be addressed if we plan on moving forward. Part and parcel of protecting our environment is the energy industry’s desire to see us open up more areas of it to future development.

That overall environmental issue is what’s been behind the White House hold-up of the approval of the Keystone XL pipeline that TransCanada Corporation (USA) (NYSE:TRP) is proposing to build. The proposed project, which will take oil from Canada to the U.S., had been delayed because of previous environmental concerns. However, the industry has worked to find what it views is a more palpable solution, and the question remains whether the government is willing to work with the industry. The fact that the U.S. State Department has come out saying that it doesn’t see any environmental damage if the Keystone XL project moves forward means the ball is now in the White House’s court.

This is a White House that’s said many times that creating jobs is important to it. Well, the energy industry supplies more than 9 million jobs and wants to add many more. According to Lance, there are “huge drilling programs that need more people to run them.” That’s just part of the potential jobs equation here, as there are pipelines like the Keystone XL to be built and manufacturing facilities that will need to be staffed as they begin to thrive on low-cost domestic energy resources.

That’s why we simply cannot tolerate politics as usual here. What’s at stake is our very place in the world as the economies of China and Brazil continue to emerge onto the world scene. We’re even seeing an increasing amount of our future production being sold to Chinese companies as that country tries to lock up its own supply. However, the risk here is that we could be jeopardizing our own energy independence. Not more than a few weeks ago, Chesapeake Energy Corporation (NYSE:CHK) , the second largest producer of natural gas in the U.S., sold a 50% interest in 850,000 acres in the promising Mississippian Lime formation. This is just one of the many slivers of domestic energy production that have been sold to foreign companies over the past few years. While I’m not saying this should be outlawed, it is something that needs to be addressed.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

6 Movies That You Should Watch to Better Understand The Cold War

Top 15 Best Paying Jobs for Women in 2014

Top 6 Things Rich People Do Differently Every Day

5 Retirement Mistakes To Avoid (and Einstein’s Famous Quote)

11 Smartest People in the World

6 Films About the Financial World You Need To Watch (While “The Wolf” is Not Around)

Warren Buffett and Billionaires Are Crazy About These 7 Stocks

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top 6 Tax Scams and How to Protect Yourself

Top Businesses to Invest In

Top 5 Things You Might Be Doing Wrong With Your Business

Top 5 Strategic Technology Trends in 2014

Top Rags to Riches Stories

Parenting Behavior That Promotes Future Leaders

Top 5 Mistakes Made by Small Businesses

Top 5 Most Common and Potentially Devastating Financial Blunders

Top 5 Highest Paying Jobs for Web Designers

Top 6 Most Respected Professions that Also Pay Well

Top 5 Pitfalls Investors Should Avoid

Top 6 Lawyers and Policy Makers Under 30

Top 6 New Year’s Resolutions for Entrepreneurs

Top 7 Locations to Check in on Facebook

Top 5 Mistakes made by Rookie eBay Sellers

Top 7 eBook Publishers in 2013

Top 6 Health Industry Trends in 2014

5 Lessons for Entrepreneurs from Seth Godin

Top 5 Success Tips from Jordan Belfort – the Wolf of Wall Street

Best Master’s in Finance Degree Programs

Top 6 Earning Celebrities Over 50

The most expensive sports to play

Top 7 Earning Celebrities Under 25

Best 7 Online Courses to Take: Free Finance MOOCs

Top 6 Bad Habits that Promote Failure

20 Most Valuable Soccer Teams in the World in 2013

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!