Ohai...anyone care to rally?

Tomorrow,  September 1st, the cities of Houston, Port Arthur and Corpus Christi, TX will each play host to the Texas Rally for Jobs. These energy/job rallies will provide an opportunity for the countless men and women whose livelihoods depend on the oil and natural gas industry and the consumers who rely on access to affordable energy to express their concerns about energy proposals from Congress and the administration that could have negative impacts on the daily lives of everyday Americans and on the American economy.

The rallies will begin at 11:00am at all three locations with the doors opening at 10:30am.

IPAA is serving as a partner for the rallies and if you are interested in finding more information, please visit www.rallyforjobs.org. Rally locations are listed below.

Houston:

George R. Brown Convention Center
1001 Avenida de las Americas
Houston, TX 77010

Port Arthur:

Port Arthur Civic Center
3401 Cultural Center Drive
Port Arthur, TX  77642

Corpus Christi:

American Bank Center Convention Center – Henry Garrett Ballroom
1901 North Shoreline Boulevard
Corpus Christi, TX 78401

Here comes football season, let's get to work.

As IPAA continues to seek an end to the ongoing deepwater moratorium and more clarity in the process (see our latest Friday Fact Check for more), there are even more calls for the same from the ground in Louisiana today (Governor Jindal here, Senator Landrieu here).  Their timing is notable as President Obama was in New Orleans over the weekend recommitting himself to the revival of the Gulf Coast on the anniversary of Hurricane Katrina’s landfall… but did not mention the moratorium which has now become its own severe economic burden on the region.

It’s not just an industry issue.  It’s about jobs at a time when the region and the country desperately needs them… And now a leader of the panel commissioned to probe the spill is saying its time to lift the ban as well.

With summer coming to a close, Congress returning to Washington and the President back from vacation; it’s time to lift the moratorium, for Washington to get back to work and to let the Gulf Coast do the same.

Last night, IPAA Vice President of Federal Resources and Political Affairs Dan Naatz was featured on the PBS Nightly Business Report.

To watch this segment, please click on the image above.  Naatz was also quoted in today’s Houston Chronicle, here.

ExxonMobil, BP, Marathon, Shell, Occidental, ConocoPhillips, Noble Energy.:  these are just a few of the companies currently working with of the Wildlife Habitat Council, a non-profit conservation organization working to increase wildlife habitat, enhance corporate sustainability, and promote conservation education. The Council was formed in 1988, as one of the first cooperative efforts between the environmental community and industry and today has over 100 corporate members.  And a new regional office in Denver, Colorado is focused on preserving and promoting the multi-use aspect of the intermountain state’s landscapes by implementing programs that will bring industry and land conservation together.

The Council’s mission is unique to oil and gas production companies as numerous opportunities exist for enhancing wildlife habitat during E&P stages.  Though production sites are generally located in remote locations, these lands are often inhabited by a variety of species of wildlife and enhancing wildlife habitat on these lands can prove extremely valuable for landowners and can send an important message to the surrounding public.  In short, the Council can provide guidance on production sites, helping to take the simple steps towards minimizing habitat loss and fragmentation, and employing wildlife management techniques that often also fulfill reclamation or permitting requirements for state or federal agencies.

And so, if you would like to learn more about the Council please visit the website at www.wildlifehc.org.

Hero?

Enter “Waterworld” star Kevin Costner, who has spent years and millions of dollars perfecting a device that cleans oil from seawater.

British Petroleum – desperate for ideas – gave the okay to test six of Costner’s gizmos this week, said BP Chief Operating Officer Doug Suttles.

Click here to read the full NY Daily News story.

I’m almost certain that a few months ago, during a cable showcase of some hopelessly watchable Costner film (there are about a dozen, maybe more, he’s prolific, it’s hard to keep up), while trading KC anecdotes, someone actually told me about this project of his. I half-remember the consensus reaction at that time being the same slack-jawed “shut-UP” mouthed today at my desk.  I’m just so mad at myself now for not remembering, weeks ago, that unsolicited, Kevin Costner “sank $26 million into the Ocean Therapy oil separator project,” or that he “obtained a license for the device from the Department of Energy in 1993 and has been trying for years to promote it.”

Primitive celebrity relief effort circa 2005.

How did this ever slip my mind and why didn’t I think of it again before it became news news? Argh.

Last week, he was in Louisiana seeking redemption, demonstrating his Ocean Therapy contraption.

“I’m just really happy that the light of day has come to this,” Costner said.

Though reporters largely greeted his ideas with snickers, BP apparently wasn’t laughing.

Costner has 300 of his Ocean Therapy machines in various sizes. The largest, at 21/2 tons, is able to clean water at a rate of 200 gallons a minute – faster than the well is leaking,

Is this the Spruce Goose of… well, there’s really no comparison is there? Besides, the Hercules flew didn’t it? Plenty of room for optimism and hope for this here Ocean Therapy contraption.

Placed on a barge, it sucks in large quantities of polluted water, separates out the oil and spits back 97% clean water.

"Reporters largely greeted his ideas with snickers..."

“It’s like a big vacuum cleaner,” said Costner’s business partner, Louisiana trial lawyer John Houghtaling.

“The machines are basically sophisticated centrifuge devices that can handle a huge volume of water,” he said.

The “Field of Dreams” star first got a team together to create the device in the wake of the 1989 Exxon Valdez spill in Alaska.

His scientist brother, Dan Costner, helped develop the device, and together, the brothers formed Costner Industries Nevada Corp. to pursue various energy projects, including a non-chemical battery that could last 15 years.

I really, really want this to work.  “Waterworld” jokes and snickering aside, there is a serious need to clean up the Gulf as quickly and thoroughly as possible; what a great, random story it would be if this were effective. And Kevin Costner, of all people… Maybe, as nod, instead of going to see Russel Crowe’s “Robin Hood,” this summer, I’ll find time and pop in an old VHS of “Prince of Thieves.” Still not joking.

Good luck, Kevin Costner. Sincerely.

The following statement was released today from Bruce Vincent, IPAA chairman and president of Swift Energy.

BACKGROUND:  America’s 5,000 independent natural gas and oil producers drill 90 percent of the nation’s natural gas and oil wells.  Independents have operated responsibly in the Gulf of Mexico (GOM) for decades and hold 90 percent of leases, producing about 30 percent of GOM oil and producing more than 60 percent of GOM natural gas.

 “On behalf of America’s domestic oil and natural gas producers, let me first say that our thoughts go out to the families and communities affected by the tragedy in the Gulf of Mexico.

“The entire industry is dedicated to working together to protect the environment and to contain the damage.  Many of our member companies have offered supplies and services; others are directly helping with the clean-up efforts. This is certainly a time when actions speak louder than words.

“There are many emotions, understandably, involved right now. Controlling the well and protecting the environment are the main priorities today. And we are urging the federal government, as they consider new regulations and new offshore exploration policies, to first allow the facts in this incident to be investigated.

“IPAA believes in the following principles:

1.       Any company operating offshore or onshore should be fully responsible (financial and otherwise) for all clean-up efforts.

2.       There must be a fund to ensure that those affected by such incidents (i.e., fishermen, tourism, local businesses, etc.) will be able to fairly recoup lost costs without being caught in fierce litigation with large corporations.

3.       The oil industry, collectively, should contribute to this fund and ensure its long-term viability.

“These principles are already a part of federal law in the Oil Pollution Act of 1990 (OPA 90) and the Oil Spill Liability Trust Fund (OSLTF). Certainly, some changes need to be made to update out-of-date OSLTF limits with additional industry funding.

“Unfortunately, some in Congress are quickly moving forward with legislation that will have profound, negative consequences for independent producers. They are proposing changes that would increase offshore liability limits to unrealistic levels under the OPA 90 — $10 billion, $20 billion, no liability limits.

“Make no mistake, independent producers that operate in the offshore are not ‘mom-and-pop’ operations; they are well funded organizations that have been responsible operators in the offshore for more than four decades. However, these liability legislative proposals will empower multinational and foreign oil companies while creating an impossible financial challenge to other American companies who compete with these corporations in the offshore.  It will result in thousands of lost American jobs and increased reliance on foreign oil.  The proposals do not achieve any of our national security, domestic energy or economic priorities, namely to provide for more American-produced energy, jobs and fewer oil imports.

“IPAA is now working with Congress to clarify the major points below:

o        Currently, OPA 90 imposes liability on offshore producers for removal costs and $75 million in damages.

o        Independents must rely on insurance to assure that they can meet the OPA 90 requirements. Insurance is not available at the $10 billion level.

o        Insurance is currently near its worldwide capacity for this industry.

o        Without insurance, independents would have to leave the GOM and other US offshore areas, independent production could be shut down and new drilling would come to a virtual halt. Thirty percent of GOM oil and 60 percent of GOM natural gas production could be lost.

o        These consequences are not justified based on the performance of independents in the offshore.

“IPAA is also working to remind Congress that a significant aspect of OPA 90 was the creation of a trust fund filled by crude oil taxes that is intended to be used by injured parties to compensate them for economic damages instead of requiring lengthy litigation. IPAA supports the expansion of this industry-wide fund to ensure that future costs and claims are covered.”

With two weeks left before Congress adjourns for their Memorial Day recess period, pressure is increasing to complete some of the big-ticket items that are being considered.

The Senate will attempt to wrap-up its work on the financial regulation reform bill over the next few days, which would then quickly get moved to a conference with the House in hopes of hammering out a final bill very quickly. Lurking in the shadows of the Wall Street bill is uncertainty about what comes next — talk of a tax extenders bill has surfaced in both chambers and while it is clear that Congress will attempt to complete it, it isn’t clear exactly how it will be done or what all the bill will contain. Also on the agenda is the war supplemental bill. In a perfect world for the majority, they would like to have both the extenders bill and supplemental finished before leaving for recess. That won’t be an easy task, but it certainly is a possibility.

Meanwhile, the focus on the Gulf oil spill picks up where it left off last week. Five more hearings will be held this week, primarily in the Senate and beginning this afternoon, to receive testimony from industry as well as officials from the Obama Administration. Secretary Salazar will be the highlight witness, but others will join him in the quest to answer many of the unanswerable questions that lawmakers have constructed so far.

The next two weeks will be jam-packed as Congress makes an effort to complete what is a very ambitious agenda.

Key Committee Schedules for Week of May 17 – 21:

Senate Homeland Security

Senate Energy & Natural Resources

Senate Environment & Public Works

Senate Commerce

House Transportation & Infrastructure

Today the latest NBC News / Wall Street Journal poll revealed that 60 percent of Americans continue to support more offshore drilling in the United States despite the recent Deepwater Horizon accident in the Gulf of Mexico. It also shows that 53 percent of Americans believe that the economic benefits of offshore drilling outweigh the potential harm to the environment.

This poll reinstates American support for responsible energy development here at home. American citizens understand the benefits of oil and natural gas production in the United States. It means job creation and revenue generation, stable energy prices,  reduced dependence on foreign sources of energy and strengthened national security. Let’s hope the politicians get the message!

Click here or here for more information on the poll.

The fourth of a seven week stretch of Congress being in session, before adjourning for the Memorial Day recess at the end of the month.  As the longest stretch of the year, it comes at a good time since there seems to be a surplus of issues to be examined by our federal government… big banks and the financial regulation bill, the car bomb found in Times Square, the oil spill in the Gulf of Mexico, the new immigration law in Arizona.  The list could go on.

While much of the Capitol’s attention remained with the financial regulation bill last week, the focus is clearly beginning to sharpen on the current crisis and oil spill in the Gulf.  As the Senate begins floor consideration to regulate Wall Street, the Senate Energy & Natural Resources Committee will welcome Interior Secretary Salazar as (at this moment) their lone witness for a hearing which will undoubtedly direct its full attention to cause, response, recovery and everything else associated with the Deepwater Horizon.

The House likely won’t be far behind in doing their part to investigate.  Rumors and expectations of imminent hearings are circulating.  But on the floor this week will be the Home Star energy bill — another relatively light lift legislatively.

As an industry, oil and natural gas producers should expect increased scrutiny over the next weeks and months, as more information becomes available about the Deepwater Horizon accident.

Key Committee Schedules for Week of May 3 – 7:

Senate Energy & Natural Resources

House Natural Resources