Governor of Texas, Rick Perry sent a fiery letter to President Obama attacking the president’s policies, and lack of action particularly on energy issues. The letter was sent on Friday May 16 and made public on Monday, May 19. In his letter, Governor Perry criticized the president’s failure to grant approval for the Keystone XL Pipeline, as well as his current approach towards energy. He added that President Obama’s stance on energy is suffocating the industry and encouraged him to replicate Texas’ energy approach on a nationwide scale.
Perry also hurled a string of criticisms in his letter regarding the regulations implemented by the Environmental Planning Agency (EPA). The EPA has implemented new rules relative to coal fired plants which Texas has since challenged. One of the rules is that states will be held accountable for pollution that drifted into other states. Despite the challenges to the new rules, they were upheld by both the Supreme Court and the federal appeals court.
Tag: texas
Blackstone Group Makes Giant Leap Of Faith In the Natural Gas Market
Despite the current shattering low prices of natural gas nationwide, Blackstone Group is making a giant leap of faith by purchasing three gas fired plants in Texas. The plants are being sold by retail electricity provider, Direct Energy, who initially purchased the plants to protect itself against the price increases in the domestic power market of the day.
Direct Energy bought the three plants for $331 million and is selling them to Blackstone for double the price. This investment will cost Blackstone Group $685 million. Reports have however surfaced that the investment firm is hoping that the state’s electricity prices remain very low.
Fears abound among state regulators that Texas’ increasing population could erode the electricity supply. As a result the Public Utilities Commission is considering paying power plants to keep excess energy. Currently, power plants are only paid for the power that they supply. This will be an incentive for energy companies to build more power plants.
Houston Energy CEO To Lead Independent Petroleum Association of America
The Independent Petroleum Association of America has elected a Houston based energy CEO to be their chairman. Michael Watford is the current chairman and CEO of Ultra Petroleum Corp, a Houston based energy company that specializes in acquisition and development of oil and natural gas properties. Houston is at the center of the formidable Texas energy industry. It is headquarters for numerous energy companies and electricity providers who serve the large Texas deregulated electricity market.
Over Watford’s 14 year term as CEO of Ultra Petroleum the natural gas company has seen its market value increase over 100 fold; from $50 million to $5.5 billion. He will take over for the outgoing chairman Virginia Lazenby. Watford’s term will be for 2013- 2015.
About IPAA
The IPAA represents thousands of independent oil and natural gas producers and service companies from across the United States. According to the association’s website, their mission is to “ensuring a strong, viable domestic oil and natural gas industry, recognizing that an adequate and secure supply of energy is essential to the national economy.”
