Some mild confusion appears to be lingering on Capitol Hill, carrying over from last week.  After Senate Majority Leader Reid announced earlier this year that he would break down the overall jobs bill into multiple smaller measures, few probably guessed that they would all be referred to as “the jobs bill.”  Unfortunately, each new bill has been designated as “the jobs bill” as it being considered on the floor, prompting many questions of “which one?”  So it has been announced again that the Senate will continue its work on jobs and extenders legislation this week.  The House, meanwhile, has a light legislative week ahead as it awaits the Senate action on the jobs measure.  Don’t worry if it doesn’t make sense, it’s all under control.

Other issues remain topical as well, as Senator Dodd is expected to share with Senator Corker a draft of the financial regulation reform bill he has been working on.  A compromise is trying to be reached, and it remains unclear until later this week just how close they may be to that.  Congress will also resume the FY11 Budget hearings in both chambers this week.  House and Senate Approps will welcome more administration officials to provide their testimony in justification/defense of the budget proposal.

Last week’s IPAA Call-Up was a great success.  As independent producers blanketed Capitol Hill to discuss priorities for the year, they were received warmly, and more importantly with open ears.  Feedback from members and staff has been encouraging so far, and will give IPAA plenty to build on moving forward.  Thanks to all of our members who participated last week.

Key Committee Schedules for Week of March 8 – 12
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House Appropriations

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Senate Appropriations

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House Natural Resources

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Senate Energy & Natural Resources

IPAA Chairman Bruce Vincent

This week, IPAA kicked off its annual Washington Board Meeting and Call-Up with a media blitz featuring Chairman Bruce Vincent, who is also president of Houston-based Swift Energy Company. A dozen reporters from leading national, regional and trade publications participated in a media roundtable on Monday at the IPAA headquarters. Chairman Vincent discussed the annual D.C. Call-Up and outlined the critical issues facing America’s oil and natural gas producers that would be discussed with Congressional leaders. The critical issues outlined included: energy taxes, federal regulations, particularly hydraulic fracturing and climate change, and commodity markets. Articles appeared in the Energy Guardian, San Antonio Express, Houston Chronicle, Oil and Gas Journal, Gas Daily and Oil Daily subsequent to the media roundtable.

Chairman Vincent also took to the air waves and appeared on News Radio KTOK out of Oklahoma City, Okla.; KCRS AM out of Midland/Odessa, Texas; Talk Radio News Service; The Lars Larson Show, the nationally syndicated broadcast out of Portland, Ore.; and WIZM 1410 out of La Crosse, Wis.

Finally, Chairman Vincent appeared on a Fox Business segment entitled “Natural Gas: An Overlooked Resource.” He discussed the significance of natural gas and how this great American resource can create new jobs, increase domestic supply and strengthen national security. Click here to view the Fox Business interview.

Following last week’s health care summit hosted by President Obama, Congress looks to use any possible momentum gained from that meeting to help push forward an agreement on legislation.  Even the most optimistic advocates for the health care overhaul have to remain skeptical about any consensus or agreement being reached between the two parties.  Regardless of those feelings, Congressional leaders will continue to push for it this week.

The issue of “jobs, jobs, jobs” also remains a high priority on the agenda, and the Senate hopes to consider legislation that will address needs to help put Americans back to work — an amalgamation of tax extenders, extending unemployment insurance, Medicaid reimbursements, subsidies for agriculture, etc etc.  An uphill battle is expected, as the majority of the bill is not offset.

This week also continues the parade of officials to testify before Congressional panels about the Obama budget proposal for FY2011.  On both sides of the Capitol there will be hearings that will feature Interior Secretary Salazar, Energy Secretary Chu, EPA Director Jackson, and others.

Most importantly for this week, IPAA will be holding it’s Congressional Call-Up on Capitol Hill.  IPAA members will be blanketing the Hill over the next few days to discuss important issues to the industry — such as taxes, regulations on hydraulic fracturing, implications of climate change legislation, and more.  This comes at a critical time, while Congress and the Obama administration struggle to find common ground on how to move forward on energy policy.  One thing is clear though: at the end of the day, America’s independent producers of oil and natural gas will play a key role in helping shape America’s energy future.

Here’s to an effective week of advocacy…

Both chambers return to the nation’s capital after a week-long recess, with jam-packed agendas awaiting them. Those full plates can be attributed to a slower-than-normal start to the new year. While Congress traditionally does not tackle many legislative issues in the early parts of January, instead deferring to the President’s State of the Union address to help outline the agenda, it has been magnified this year by the inconvenient timing of two of the largest snowstorms on record for the DC-area. We are beginning the final week of February, and Congress has little to show for the first two months of 2010.

Three central issues will drive the activity on Capitol Hill over the next few days: health care, budget, and jobs. Read the rest of this entry »

Did you know that China has been breaking a lot of records lately? These records directly translate into the political economics of energy and some of the trends to watch as we bear (or bull our way) into 2010. As the Chinese proverb notes, “may you live in exciting times.” It’s not yet the Year of the Dragon (that will be 2012) but the Year of the Tiger has already been quite exciting for China and for global commodity demand implications.

According to the BP Statistical Review of World Energy, 2008 marked the first year in which developing country demand ranked higher than developed country demand. China played a large role, accounting for almost three-quarters of the 2008 growth in overall primary energy demand, and this trend looks to continue going forward based on some recent superlatives.

In 2009, China also replaced Japan as Asia’s biggest crude importer with imports up over 14 percent last year averaging 4.1 million barrels per day. China’s oil imports topped five million barrels per day for the first time in December of last year based on data from Energy Intel which estimated a “likely 5% increase in oil demand this year to 8.74 million b/d.” The latest energy forecast from the International Energy Agency (IEA) is quite bullish compared to the EIA or OPEC numbers, showing a 1.47 million barrel per day increase in 2010 oil demand. The IEA is building upon the developing country growth prospects illustrated in the BP Review.

China’s oil company, PetroChina, recently topped the PFC Energy 50. PetroChina was valued at $34.9 billion in 2002 when it made the top ten but its latest yearly market cap is around ten times that. China’s energy companies continue to be among the most aggressive in buying up oil and gas reserves around the world. Read the rest of this entry »

SNOW! DISASTER.

But not in Houston…

While nearly all of the IPAA staff has been snowed out of this year’s winter NAPE (Blizzard with a Capitol B as far as I’m concerned), the show does go on and like its predecessors, the 2010 edition of NAPE and today’s E&P forum are providing the best and biggest upstream prospect marketplace possible for the industry.

Today’s ongoing E&P Forum and Prospect Preview presentations have been expanded to include BOTH international and domestic prospects- a schedule is available by clicking here.

Regrets on not being able to make the show in person this year and looking forward to returning in August.  If you have made the trip to Houston or are otherwise on your way to the NAPE floor this week, please do stop by the IPAA booth (#3262) and give a welcome/hello to our own Fred Lawrence and Bob Jarvis holding down the fort for the snowed-out Washington office- they’re carrying quite the load for us this week.

For more information on this week’s NAPE, please click here.

Among the many issues covered by the President in last night’s State of the Union address one theme crept throughout President Obama’s narrative; jobs and his desire to put Americans back to work and the American economy back on track. Well, President Obama is in luck because the American energy industry has some good news…not that it is necessarily “new” news since industry has been telling anyone and everyone who would listen. Has the President not been listening? That is a topic that deserves its own discussion.

Last night the President said, “And no area is more ripe for such innovation than energy.  You can see the results of last year’s investments in clean energy -– in the North Carolina company that will create 1,200 jobs nationwide helping to make advanced batteries; or in the California business that will put a thousand people to work making solar panels.” That is 3,200 jobs, and that is good news. I wholeheartedly support any and all efforts to provide work to Americans who need it. However, ongoing efforts by his party and cabinet are putting tens of thousands of existing and countless more potential jobs in jeopardy.

Read the rest of this entry »

Expectations for any significant legislative activity this week should be kept very low.  Both the House and Senate have scheduled light workloads for themselves, with President Obama set to give his first official State of the Union address on Wednesday. 

And the SOTU address is exactly where the overwhelming majority of focus will lay this week.  The annual DC tradition of speculating about what the President will include in his remarks has already begun around town, and the one recurring theme is that he will focus on “jobs, jobs, jobs.”  The White House has even signaled this in their comments to the press.  Including comments from a senior WH official that the President will show a more feisty side in the speech, but will not be trying to reinvent himself or his presidency.  

While I think very few people expect that, this would be a good opportunity for President Obama to turn around his Administration’s overly-ambitious agenda and focus on more achievable goals.  One suggestion I’d like to make to the President — America’s independent producers can play a key role in your goals; by producing American oil and natural gas (national security and less dependence on foreign oil), by providing expanded job markets that traditionally are good wages (helping job creation), and having positive economic impacts on regions that have exploration and production (revenues to state and local governments, and healthy industries).  Unfortunately, we are much more likely to see the President ignore this and instead release a budget proposal next week that calls for increasing taxes on the oil and natural gas industry… just like last year.

In the House, a short legislative work week that starts tomorrow and ends on Wednesday.  Last week I mistakenly reported that the Republicans would be holding their annual retreat over the weekend.  It will actually take place this week, beginning on Thursday.  Apologies for the mistake.

In the Senate, work will continue to complete legislation that would boost the statutory debt limit.  Meanwhile, behind-the-scenes discussions and negotiations will also carry on regarding the health care issue, as the majority party weighs its options on how to proceed.

Throughout this week, and particularly following the SOTU, DC should gain a more clear understanding of the agenda that Congress intends to achieve for 2010.  But take any news with a grain of salt, as election years tend to throw more than one wrench into any party’s plans.

After having Monday off in observance of MLK Day, Congress gets back to business today.  The Senate joins the House, which officially returned last week, to get 2010 kicked off.  All in all, this sets up to be another relatively light week.

The Senate will pick up where it left off in 2009… contemplating the fate of the health care overhaul, and taking up the debt ceiling legislation that the House passed around mid-December.

In the House, a number of suspension bills will be considered, but we are unlikely to see any headline legislation (none is scheduled at this time).  After the Democratic Caucus retreat this past week and weekend, the Republican Conference will hold their own retreat this weekend after the House adjourns on Thursday.

The big story this week rests in the House, with Congressman Ed Markey holding a hearing on Wednesday morning to examine/discuss the proposed Exxon/XTO deal.  As mentioned before, there is extremely slim likelihood that this hearing will produce any legislative activity related to the advertised topic.  But hydraulic fracturing stands to be a possible focal point of the hearing, and could steer the event down a path that leads to a call for further examination of the process.  That is purely speculation at this point, but speculation that is not out of the realm of possibility.

Tomorrow’s hearing will undoubtedly be an important event for independent producers, the United States’ shale gas reserves, and the potential economic impact that the American public stands to benefit from.  More information on the hearing can be found at the link below.

Key Committee Schedules for Week of January 19-22:
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House Energy & Commerce