With rebels finally closing in on Tripoli, people have revamped their speculations about Libya’s troubled oil production. The six month conflict has reduced Libyan oil production from about 1.6 million barrels per day before the start to 50,000 barrels per day now. Although analysts are hopeful that the fall of the Gaddafi regime will enable production to increase to about 300,000 barrels per day in a few months, most are doubtful that it will return to pre-conflict levels until after 2013.
IPAA released an analysis this week which pitted the decreasing Libyan oil production against the increasing American oil production. When juxtaposed against one another, it’s the outstanding gains of U.S. production stand crystal clear. Click here to view the full analysis.
Our economists noted:
“Although all Middle Eastern conflicts make us question the future stability of the oil market, the real answer lies within our own borders. The United States, due to shale and tight oil discoveries cropping up throughout the lower 48 states, is more than making up for Libya’s decreased oil production.”
Shocks in the oil supply are no small matter. However, our oil producers in America—lead by independent producers opening up established and emerging shale plays—have our energy needs covered. These numbers reflect the industry excitement demonstrated at the Summer NAPE® conference, which I blogged on earlier this week.
Clearly, the United States is at a crossroads: we can further restrict our own energy development and leave ourselves susceptible to oil supply disruptions from turbulent conflicts overseas, or we can increase our energy security by enacting energy policy that promotes oil production of our vast resources here at home—which will also provide jobs and give our economy a much-needed boost.
Please visit www.oilindependents.org for more information on how America’s independent oil producers are influencing the global energy market.
Last week, the bi-annual NAPE expo was held at the George R. Brown Convention Center in Houston, Texas. Many members of the IPAA staff traveled to Houston to attend NAPE, the world’s largest prospect and property expo, which IPAA has been a proud partner of since 1995. With over 6000 attendees, NAPE proved once again to be an expo which drew the industry, despite temperatures in Houston reaching 100 degrees.
As part of the conference on Wednesday, Lee Fuller, vice president of government relations at IPAA, was featured on an expert panel entitled, “The Golden Goose – Spotlight on Economic Significance of the U.S. O&G Industry.” Fuller focused on the disastrous economic impacts of changing the current tax structure that has encouraged industry investment for decades and fielded multiple questions from members of the industry about the political climate in Washington.
The special guest speaker at the NAPE Industry Luncheon on Thursday was Lieutenant General Russel Honoré, who commanded the Joint Task Force for Hurricane Katrina. Lt. General Honoré stressed the need cultivating a culture of preparedness, especially in states that are susceptible to natural disasters. The Lt. General is pictured above with Therese McCafferty, IPAA’s vice president of administration and member services.
During the luncheon, the industry gave over $200,000 dollars to charities. One of the recipient charities was Canine Companions for Independence, a non-profit which gives wounded veterans highly-trained assistance dogs that help them regain their mobility and independence. Former Special Forces soldier, Jason Morgan said that his dog, Nepal, helps him everyday, not only physically, but emotionally as well. Jason and Nepal are pictured above holding the IPAA dog toy that members of our staff gave away at our booth. IPAA is proud to support Canine Companions for Independence and encourages all to give back to our troops who make enormous sacrifices for our country’s freedom.
All in all, NAPE was a huge success. At the IPAA booth, we were able to talk with our members, whom we always look forward to connecting with and we also signed up some new members. The next NAPE will take place in Houston (as always) in the winter—we’ll keep you updated with details in the months ahead.
While enjoying a collegial dinner Wednesday night, some of the IPAA staff were surprised to see across
Author advises "Gov. Palin" during NAPE®
the room, none other than Sarah Palin, dressed suspiciously like Sarah Palin. Convinced this was the real Governor, IPAA’s own Ms. Joanie Rylander was elated; that is until she was gently referred to the business card in her hand featuring a prominent “impersonator” after “Sarah Palin.” Oh well.
(By the way, the card was signed. “Keep the faith.”)
Anyway, the hockey mom doppelganger is actually here at NAPE® with the Donkel Oil & Gas LLC, “Helping America in becoming energy sufficient. Providing quality Alaskan Oil & Gas Leases.” Her real name is Patsy Gilbert, a good sport who does not look exactly like Palin but does get into character, acting the part well in just the way you might expect Palin to be, which I think is… charming? (Never met her, what do I know?) Patsy is at least.
So we’ll end with that and wrap up here at NAPE®. Our bright eyed IPAA contingent has successfully spread the word, fed a lot of people, met new members and visited with old friends. A good time for all that made the trip down. We’ll be back in August and hope to see you there or on the road before.
Balloons over the Grande Energy booth.
I finally got a chance to catch up with Fred Lawrence and talk about the success of Wednesday’s International Forum. He had some great analysis to share and so…
“The record attendance of prospect promoters and attendees is symptomatic of market conditions; lower commodity prices are going to make companies look for partners as they adjust to the new price environment. The growth of the International Pavilion (at the Expo) and the International Forum illustrates the increasingly global context of networking and business development especially with more price volatility and declining access to reserves.”
“This year, for the first time we added a third room to accomodate 50 prospect presenters from around the world, from Greenland to the North Sea, to Kazakhstan and Malaysia. The morning IHS presentations and the afternoon prospect promotion presentations will be available on the IHS website, www.ihs.com.”
There you have it.
And for desert, a shot back to yesterday’s lunch show…
Dan Dunn with work from Thursday
This week IPAA spokespeople have been working the media circuit. IPAA Chairman Buddy Kleemeier and IPAA Vice Chairman Bruce Vincent appeared on World Energy TV during the 2009 Winter NAPE® Expo down in Houston, Texas.
Vincent was also featured on the air waves. He was on the Lionel Show on Air America talking about the volatility of gasoline prices and the critical role natural gas will play to combat climate change. This morning he was on KMJ-580, which reaches from Sacramento to Los Angeles, to let people know why drilling off the coast of California is key to stimulating the U.S. economy and reducing the nation’s reliance on forei
IPAA Vice Chairman Bruce Vincent, president and director, Swift Energy Company, Houston.
gn oil imports. To listen to the interview, click on this link: bruce.
IPAA President and CEO Barry Russell bylined a letter-to-the-editor that was published in the Ventura County Star. His letter talked about the anniversary of the Santa Barbara oil spill in 1969 and how far technology advancements have come in the industry since then. Click here to view the letter.
Finally, IPAA Vice President of Federal Resources Dan Naatz provided comment to Dow Jones about why lawmakers should move forward with the MMS five year plan for offshore development. For the full article, click here.
Some of the first visitors to stop by the IPAA booth this year were the good folks from the Children’s Land Alliance Supporting Schools (CLASS). Nice people and a group with an interesting and relevant mission and so they’ve won themselves a post and a plug.
Based out of Utah, CLASS is dedicated to the productive use of 45 million acres of school trust lands to help provide the best education for every child. The back story (this and more available at www.childrenslandalliance.com) is that every state at one time held land and/or a fund in trust for public education granted either by the federal government or the states themselves. Public schools remain the trust beneficiaries of the aforementioned 45 million acres still held and are the intended recipients of the generated revenue. So CLASS is working for the productive use of these lands (oil and natural gas anyone?) and are here at NAPE® to spread the word. And their raffle? A Utes football helmet with the catch that you have to sign up for a CLASS membership for a chance. At $25, not a bad deal for a good cause.
Speaking of not a bad deal for a good cause, the IPAA booth is serving sliders this year!
More from the floor to come…
IPAA booth in action.
It seems I have a compulsion for leading with the weather so let’s get that out of the way; it is beautiful. Perfect. Thank you Houston, glad to be back, at least in February.
Now, down to business.
I missed the International Forum (shame on me) but according to Fred Lawrence it was, as expected, another great success, setting records in attendance and number of presenters. I’ll pick Fred’s brain a bit more on the forum and presentations this afternoon and see if I can’t get some highlights and hard numbers up later tonight.
Though I missed the International Forum I did make it down here in time for the icebreaker. While I was not surpised to see a very strong showing there (open bar), I was suprised once the sun set to see the real fireworks start. Continue reading