IPAA independent petroleum association of america, america's oil and gas producers

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Nicole Daigle / Brendan Bradley
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For Immediate Release
August 6, 2010


IPAA Continues to Fight Anti-Industry Momentum Sweeping Through Washington

As US Economy Sheds 131,000 Jobs, Washington Continues to Punish Gulf Coast Families,
Small Businesses with Misguided Moratorium

WASHINGTON - Leaders in Washington continue to thwart and undermine domestic oil and natural gas production, which is performed overwhelmingly by America's independent producers. These misguided efforts - from billions in tax hikes, a blanket offshore production moratorium, to an unprecedented federal takeover, and possible shut-down, of hydraulic fracturing - will lead to fewer American jobs at a time when they're most needed, and fewer supplies of reliable and stable homegrown energy resources for struggling consumers and small businesses. 

Will any of these policies -- particularly efforts to drive independents out of the Gulf through making it impossible to secure requisite insurance -- deliver any added environmental benefits or help create jobs? Absolutely not. Collectively, these wrongheaded policies are creating tremendous amounts of economic uncertainty and unrest for communities and regions that need relief -- not a boot on their neck.

What's worse, even as the Obama Administration admits that its policies are "causing hardship," the U.S. Labor Department announced earlier today that "employment declined by 131,000 in July," with the national unemployment rate remaining at 9.5 percent. 

But as the economy continues to shed thousands of jobs, and our nation's dependence on energy from unstable regions of the world continues to grow, the Senate punted on consideration of sweeping, potentially devastating and hastily-written legislation this week, which lacks broad support.

In a story this week in Penn Energy, Independent Petroleum Association of America (IPAA) president and CEO Barry Russell describes the "anti-industry momentum sweeping through Washington":

"This is a good, very important development," said Independent Petroleum Association of America Pres. Barry Russell. "The delay gives industry and our allies more time to fight these contentious proposals and halts the fast anti-industry momentum sweeping through Washington since the Gulf of Mexico accident." 

Russell noted that provisions in the Senate bill that IPAA opposes, in addition to the two mentioned by API's Gerard, include proposed amendments to the Outer Continental Shelf Lands Act, which the independent producers' group thinks would leave any administration decision open to challenge; denial of leases to producers based on safety and while relying on arbitrary and vague requirements that are open to broad interpretation and legal challenges; and increasing the current 30-day review for offshore drilling permit applications to at least 90 days or 180 days at the Interior secretary's discretion.


Gulf Coast Leaders Continue Fight for Region's Economy 

  • "New Orleans Mayor Mitch Landrieu added his voice to the chorus of calls from local leaders to end the drilling moratorium with a suggestion steeped in symbolism: "End the moratorium now." (Times-Picayune, 8/4/10)
     
  • U.S. Rep. Bill Cassidy (R-La.), Natural Resources Committee: "Our economy and national security depend on an affordable, reliable energy supply. And hundreds of thousands of middle class families count on deepwater rigs for jobs. (Washington Examiner, 8/5/10)
     
  • "In Louisiana, analysts have estimated that 11,000 people will be laid off by the end of this year if 33 deepwater rigs, now either unable to operate in the Gulf or working on temporary relief and re-work wells, can't resume work in the next year. Michelle Foss, chief energy economist at the University of Texas Jackson School of Geosciences, fears that could get much worse if white-collar, shoreside jobs start getting cut in Houston. She said that in a worst-case scenario, in which all 33 rigs leave the Gulf for foreign accounts, more than 100,000 jobs could be lost, with lawyers, accountants and engineers laid off with the rig workers, crane operators and deck hands. (Times-Picayune, 8/3/10)
     
  • U.S. Sen. John Cornyn (R-Tx.), Senate Finance Committee on Energy, Natural Resources: "Texas Sen. John Cornyn criticized the Obama administration's temporary offshore drilling moratorium today, calling it "poorly thought out and short-sighted." "What does this moratorium do except make more Americans lose their job, make it harder for more Americans to pay their mortgage?" he said. ... Workers along the Gulf were "being absolutely decimated." ... Cornyn cautioned that the deepwater moratorium would force oil rigs to move to other parts of the world and only make the jobs situation worse. (Dallas Morning News, 8/4/10) 


Top Okla. Oil, Natural Gas Regulator Says Hydraulic Fracturing is Safe, Well-Regulated, Best Left to the States

  • Okla. Corp. Commissioner Bob Anthony: "We've used HF for some 60 years in Oklahoma, and we have no confirmed cases where it is responsible for drinking water contamination - nor do any of the other natural gas-producing states. ... Without hydraulic fracturing, Oklahoma's oil and natural gas production would plummet, as would our economy. Our state is the nation's third-largest producer of natural gas and its fifth-largest land-based oil producer. ... Maintaining regulation of oil and gas at the state level is essential. ... We are committed to protecting our state resources and do not believe in a "one-size-fits-all" federal approach as advocated by some. (The Oklahoman, 8/6/10)

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IPAA is the national trade association representing oil and natural gas producers that drill 90 percent of the nation's oil and natural gas wells. These companies account for 68 percent of America's oil production and 82 percent of its natural gas production.