(OilPrice) On May 11, 2012, the US Bureau of Land Management (BLM) published proposed regulations governing “Oil and Gas; Well Stimulation, Including Hydraulic Fracturing, on Federal and Indian Lands.” BLM is a latecomer to this party. Its belated meddling lacks practical or economic justification. Instead, the proposed BLM rule would drive oil and gas developers off federal and tribal lands. Complying with the rules is too complicated and costly. Producers can realize a much faster and much better return on their capital investment by developing oil and gas reserves on adjoining private lands.
Federal and tribal lands hold large reserves of oil and natural gas. At a time when the United States desperately needs to move toward, not away from, energy independence, it makes no sense to let bureaucratic meddling effectively place these valuable domestic reserves out of reach. The problems with BLM’s approach are myriad.