Oil Companies

Energy companies across California are injecting a mysterious mix of chemicals into the ground to tap oil deposits while frustrating attempts to regulate the controversial process, known as hydraulic fracturing. The procedure has drawn the greatest attention in the Rocky Mountain West and Northeast, where states have debated moratoriums to develop regulations after toxic chemicals were found in nearby drinking water. But a quieter battle is being waged in the Golden State, which could be a candidate for increased "fracking" because of its unique geology.

In the absence of statewide regulations for hydraulic fracturing, Southern California air-quality officials have enacted their own reporting rules for the controversial extraction process driving the country's oil and gas boom. On Friday, the governing board of the South Coast Air Quality Management District adopted a rule that requires oil companies to notify the air agency 10 days to 24 hours before beginning drilling operations, including "fracking," which involves injecting large volumes of chemical-laced water and sand deep into the ground to break apart rock and release oil. That notice, including the location of the well, will then be posted on the agency's website . Under the new rule, companies are also required to disclose all the chemicals they use, a provision that sparked opposition from oil industry trade groups and Halliburton, one of the world's largest oil field service companies and a pioneer of hydraulic fracturing.

TAFT, Calif. - This two-stoplight town was built on petroleum, and residents here never miss a chance to pay tribute. A 38-foot monument to wildcatters stands downtown; locals brag it's the tallest bronze sculpture west of the Mississippi. Every five years, the city throws an "Oildorado" festival. There's even a beauty pageant in which young women dubbed "the maids of petroleum" vie to be crowned queen. It's all an homage to the bustling days when Taft boasted two giant oil fields and Standard Oil Co. of California was headquartered there.

TAFT, Calif. - This two-stoplight town was built on petroleum, and residents here never miss a chance to pay tribute. A 38-foot monument to wildcatters stands downtown; locals brag it's the tallest bronze sculpture west of the Mississippi. Every five years, the city throws an "Oildorado" festival. There's even a beauty pageant in which young women dubbed "the maids of petroleum" vie to be crowned queen. It's all an homage to the bustling days when Taft boasted two giant oil fields and Standard Oil Co. of California was headquartered there.

In the absence of statewide regulations for hydraulic fracturing, Southern California air-quality officials have enacted their own reporting rules for the controversial extraction process driving the country's oil and gas boom. On Friday, the governing board of the South Coast Air Quality Management District adopted a rule that requires oil companies to notify the air agency 10 days to 24 hours before beginning drilling operations, including "fracking," which involves injecting large volumes of chemical-laced water and sand deep into the ground to break apart rock and release oil. That notice, including the location of the well, will then be posted on the agency's website . Under the new rule, companies are also required to disclose all the chemicals they use, a provision that sparked opposition from oil industry trade groups and Halliburton, one of the world's largest oil field service companies and a pioneer of hydraulic fracturing.

An attempt to roll back oil company tax breaks was blocked in the Senate, despite a Rose Garden push by President Obama, who said the big five oil companies are doing “just fine” as consumers struggle with painfully high gas prices at the pump. Republicans led opposition to the measure, but several Democrats from oil-rich states joined the GOP in a filibuster to prevent the legislation from advancing. The vote was 51-47, failing to reach the 60-vote threshold. Senate Majority Leader Harry Reid said the GOP was "poised to pick the pockets of American taxpayers to line the pockets of these oil executives.

Some of the nation's biggest oil companies are looking at permanently reducing how much gasoline and diesel fuel they make, a move that analysts say would almost certainly trigger higher prices for drivers. Energy companies are suffering huge losses from refining because of slumping gasoline use -- a product of the economic downturn and changing consumer habits and preferences. Energy experts say refining cutbacks have begun and will accelerate as corporations strive for profits. Major refiners have been circumspect about their plans, saying that they are considering options that could include closing refineries, selling parts of their operations, laying off workers and slashing spending.

Gasoline prices are skyrocketing — and so are oil company profits. Exxon Mobil Corp. earned nearly $11 billion in the first three months of the year, a rollicking 69% increase over its performance for the same period last year. That's on sales of $114 billion. It's the same story for the other big oil companies. Royal Dutch Shell turned a profit of $6.3 billion in the first quarter, and BP — despite lingering costs from the Gulf Coast oil spill — made $7.1 billion. What they aren't making is fuel, at least not in normal quantities.

It was close to 2 a.m. when Rep. Edward J. Markey (D-Mass.) and others on a House-Senate conference committee saw just how much clout the oil industry had when it came to winning special tax breaks and other financial benefits from Congress. At issue was the 2005 Energy Policy Act — the largest energy bill in years. The committee chairman, Rep. Joe L. Barton (R-Texas), a friend of the industry, had saved some big issues for the end: billions of dollars in tax and royalty relief to encourage drilling for oil and gas in the Gulf of Mexico and other offshore areas.

The Justice Department signaled Tuesday that it may sue BP and other oil firms involved in the massive Gulf of Mexico spill for violating federal environmental laws, actions that could ultimately lead to heavy civil fines against the companies. If federal laws were found to have been deliberately broken, authorities could file federal criminal or civil charges against the companies, Justice Department officials said. "As we have said from the beginning, we are committed to ensuring that those responsible clean up the mess they made, restore or replace the natural resources lost or injured in this tragedy, and repay every cent of taxpayer money," said Hannah August, a Justice Department spokeswoman.

SACRAMENTO - Although many of California's cities and counties have been struggling financially, putting off road repairs, cutting back library hours and reducing police patrols, there is one way in which they have not held back: hiring Sacramento lobbyists. Local governments' spending on advocacy in the Capitol has surged in recent years, topping $96 million during the two-year legislative session that ended last fall - an increase of nearly 50% from a decade ago. The sum dwarfs the lobbying bills of the state's largest labor unions, big oil companies and other energy interests combined, according to the California secretary of state's office.

SACRAMENTO -- Tapping California's oil-rich Monterey shale using hydraulic fracturing could boost the state's economic activity by as much as 14.3% and create hundreds of thousands of jobs, according to a new USC study. As detailed in Money & Co. blog , the development of the 1,750-square-mile formation in Central California could have a transformative effect on the Golden State's economy, with the state potentially reaping oil-related tax revenue of $4.5 billion in 2015 and $24.6 billion by 2020.

At first glance, two stories much in the news in Los Angeles of late would seem to have nothing to do with each other. The first concerns the fate of the Museum of Contemporary Art - whether it will affiliate with the Los Angeles County Museum of Art or USC or the National Gallery in Washington - and the outsized role its primary benefactor, Eli Broad, is likely to play in the choice. The second concerns the low voter turnout in the first round of the city's mayoral election this month.

SACRAMENTO -- State oil regulators have scheduled a series of public meetings to explain the Brown administration's proposed rules for hydraulic fracturing. The draft regulations, which were released in December, represent California's first attempt to govern the controversial drilling process known as fracking. The daylong meetings are set for Wednesday in Bakersfield and March 21 in Sacramento. Although the proposed rules would require energy companies to disclose many of the chemicals they inject deep into the ground to break apart rock and release oil, some lawmakers and environmentalists have said the regulations should go further, including advance notice to nearby landowners and water monitoring around fracking operations.

MEXICO CITY - Mexico's ruling party has taken a step toward opening its state oil company to outsiders, a move that could eventually allow U.S. oil firms to drill south of the border. In an important test of Mexican President Enrique Peña Nieto's sway over resistant factions of his party, the Institutional Revolutionary Party has changed its bylaws to clear the way for changes at Petroleos Mexicanos, or Pemex. Pemex, a symbol of nationalist pride, is the top source of tax revenue for the Mexican government.

MEXICO CITY -- In an important test of President Enrique Peña Nieto's sway over resistant factions of his party, the ruling Institutional Revolutionary Party has changed its bylaws to clear the way for major reform of the gigantic national oil company. Meeting in its annual convention, the PRI, as the party is known, on Sunday passed several changes that Peña Nieto needed to make possible a series of reforms he has promised as the hallmark of his administration. Chief and most difficult among them is a plan to open the behemoth state oil company, Petroleos de Mexico, or Pemex, to private and foreign investment, long a taboo in this country.

Re "Senators Turn Up Heat on Oil Executives," Nov. 10 Oil companies are in the business of making money from oil. Assuming that the companies didn't engage in any illegal activity, such as price collusion, the interrogation of oil execs by Congress appears to simply be an attempt by legislators to scapegoat big business for Congress' own inability and/or refusal to draft forward looking, responsible energy-related policies that would have promoted...

The Securities and Exchange Commission is examining payments by five big U.S. oil firms to officials of Equatorial Guinea and businesses they controlled, as government inquiries related to Riggs Bank proliferate. Spokesmen for the companies -- Amerada Hess Corp., ChevronTexaco Corp., Exxon Mobil Corp. and Marathon Oil Corp. and Devon Energy Corp. -- confirmed the preliminary investigation. At issue is whether U.S. anti-bribery laws were broken.

SACRAMENTO - State lawmakers voiced doubts Tuesday that the Brown administration's proposal to regulate hydraulic fracturing is tough enough to protect public health and safety - and questioned whether the state's oil regulators could be trusted to enforce it. State senators convened a joint legislative hearing to review the draft regulations, which represent California's first attempt to govern the controversial drilling process known as "fracking....

SACRAMENTO -- State lawmakers are voicing doubts that the Brown administration's proposal to regulate hydraulic fracturing is tough enough to protect public health and safety -- and they're questioning whether the state's oil regulators can be trusted to enforce it. As detailed in Wednesday's Los Angeles Times , state senators convened a joint legislative hearing to review draft regulations, which represent California's first attempt to govern...