KGOU

oil and gas

A crude oil tank farm in Cushing, Okla.
Joe Wertz / StateImpact Oklahoma

The Cushing oil hub is crowded with hulking oil tanks, miles of pipeline and countless pumps, compressors and other equipment used to ferry around the roughly 80 million barrels of crude stored there.

Oklahoma has experienced a swarm of earthquakes, which seismologists say might be triggered by disposal wells used by the oil and gas industry, and it’s not hard to imagine the havoc a little earth-shaking might have on the high-profile oil hub.

Suzette Grillot / KGOU

World Views host Suzette Grillot is in the middle of a four-city tour of China on behalf of her day job as the Dean of the University of Oklahoma’s College of International Studies. She lived in Beijing for a semester as a teaching fellow at Beijing University in 2007, but she’s there now with the College’s Assistant Dean, Rebecca Cruise.

Provided / SandRidge Energy

SandRidge Energy is selling all of its holdings in the Gulf of Mexico.

The Oklahoma City-based oil and natural gas company announced early Tuesday morning Fieldwood Energy will pay $750 million in cash and assume $370 million in abandonment liabilities for its Gulf and coastal properties.

A rig hand on a Triad Energy horizontal drilling operation near Alva, Okla. Company CEO Mike McDonald says he likely wouldn't have drilled the well with out a tax break Oklahoma's House Speaker has proposed making permanent.
Joe Wertz / StateImpact Oklahoma

Oklahoma House Speaker T.W. Shannon will author legislation to make permanent an oil and gas industry tax break for horizontal drilling.

The incentive lowers gross production taxes from 7 percent to 1 percent for the first 48 months of production, and was installed in the ’90s to encourage the then-experimental type of drilling. Now days, most oil and gas wells in Oklahoma are horizontally drilled, and critics say the incentives are unnecessary.

Hydraulic fracturing and modern oil and gas drilling use a lot of water, a commodity that’s in short supply in northwestern Oklahoma’s booming oilfield.

To get their water, energy companies lay temporary pipelines atop private property, but a county commissioner and a class-action lawsuit are raising questions about the common practice.

Oklahoma has never been known as earthquake country, with a yearly average of about 50 tremors, almost all of them minor. But in the past three years, the state has had thousands of quakes. This year has been the most active, with more than 2,600 so far, including 87 last week.

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