The White House administration, on Friday said it was creating a working group to coordinate oversight of the production of natural gas. The industry has complained of late because of the excessive regulations that could hinder a natural gas boom that has dropped prices to their lowest in 10 years.
On Friday, the President signed an executive order saying a group was necessary to make sure a number of federal agencies that conduct oversight on drilling, work together. Obama stressed how important it is that the country takes advantage of the natural gas it has while not compromising the water or air quality.
Production of natural gas has skyrocketed recently as new techniques are used by drillers, like hydraulic fracturing to get access to wells that could not be reached in prior years. Hydraulic fracturing, also known as fracking involves blasting water, chemicals and sand mixed together deep underground in order to stimulate the release of the natural gas. Often times horizontal drilling is used, which can help production beyond that of wells that are vertically drilled.
The executive order was welcomed by industry groups, which also was timed to help counter recent criticism by Republicans and business leaders who have at times accused the president of using double standards for drilling, saying at times he supports it, when he is really cracking down at the same time.
American Petroleum Institute CEO and president, Jack Gerard said, “We have asked the White House to avoid overlapping and unnecessary regulatory efforts and we are happy to see the administration is moving forward.”
