Thursday, September 24, 2015

OPEC to the Rescue for Mating Dance of Prairie Chicken

The greater sage grouse may have found an unlikely ally: OPEC. The fowl at the center of one of the nation’s biggest conservation battles had already received good news before the Interior Department declined to classify it as endangered. With Saudi Arabia and other OPEC members pumping oil with no respite despite crude prices below $50 a barrel, drillers in the U.S. have idled more than half their rigs over the past year in western states where the grouse lives, like Colorado and Wyoming.  “The big concern was the geography of the habitat was so wide and vast, it could have infringed on the growth potential of the industry,” said Peter Pulikkan, an energy analyst with Bloomberg Intelligence. “That issue has fallen off the radar with the price collapse. Drillers have got bigger issues to deal with than a boisterous bird.”...more


Mr. Pulikkan, I seriously doubt the issue has "fallen off the radar" with industry.  The drillers are responding to market signals just like they have for years.  The problem would be when the market comes back and they would be subject to the strict requirements of the ESA. 

The enviros will file lawsuits over this decision.  Let's see if the industry intervenes.

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