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For Immediate Release
October 21, 2009

WASHINGTON – The Congressional Natural Gas Caucus met formally for the first time today, holding a hearing in which Bruce Vincent, the incoming chairman of the Independent Petroleum Association of America (IPAA), shared his perspective on the extraordinary opportunity of America’s shale gas. The Caucus, co-chaired by Congressmen Dan Boren (D-Okla.) and Tim Murphy (R-Pa.), is a bipartisan organization working to bring together lawmakers from energy producing states across the country.

Vincent, president of the Houston-based Swift Energy Company, released the following statement after participating in today’s hearing on the “State of U.S. Natural Gas Today”:

“Natural gas provides more than 20 percent of the energy that keeps the American economy moving each day. Thankfully, because of the hard work from Congressman Boren and Congressman Murphy, Congress is finally realizing that this abundant, affordable, clean-burning and reliable energy source – which is responsible for thousands of good-paying American jobs – will continue to play a leading and growing role in securing our nation’s energy future.

“Support for America’s shale gas resources knows no party affiliation, and recognizes no political lines drawn on a map. From the northeast to the Intermountain West, Americans have seen the positive economic activity and growth that is associated with environmentally-safe and well-regulated natural gas production. On behalf of America’s independent oil and gas producers, IPAA is excited to contribute to the Natural Gas Caucus and to be a part of this hearing today.”

Key Excerpts from Vincent’s Testimony:

On the Role Independent Producers Play in Delivering Homegrown Natural Gas

• IPAA represents the roughly 6,000 independent producers in the United States. These companies range in size from small mom-and-pop operations to large, publicly traded corporations. They develop 90 percent of America’s natural gas and oil wells. Independents produce over 80 percent of America’s natural gas. They operate principally as explorers and producers of their commodities – selling natural gas and oil to others who transport, process and distribute final products.

On Natural Gas’s Ability to Help Meet America’s Energy Needs

• Natural gas from shale formations truly changes the role natural gas can play in America’s future energy picture. You have heard and will hear how these resources can provide more than 100 years of natural gas at today’s demand levels.… Sophisticated hydraulic fracturing frees the natural gas for production.  Without it, none of the expectations of shale gas would be realistic. Unfortunately, we confront an aggressive and well orchestrated effort to mischaracterize and demonize hydraulic fracturing technology. This technology has been in use for over 60 years, more than a million times, about 35,000 times each year now. Throughout that history, no pattern of failure that harms the environment occurred.

On 21^st Century Gas Production Technologies

• Clearly, protecting the environment during the development and production of natural gas must be a top producer priority. …Drilling techniques now allow wells to be bored a mile or two miles into the earth where the shale formations lie and then turn the well bore horizontally to follow the shale formation for another half mile or mile. They create the ability to control the cost of this development and limit its environmental footprint. Without horizontal drilling thousands of additional wells would be needed.

On the Threats to New, American Natural Gas Supplies

• The Obama Administration proposed tax code changes targeted at American natural gas production that would dramatically reduce independents ability to develop new production and maintain existing wells. These changes would affect historic tax policies – provisions like intangible drilling and development costs that have been part of the tax code since its initial year of 1913 or percentage depletion that was added in 1926. The overall consequences of these proposals on independents include a reduction in new drilling by 25 to 40 percent affecting new wells – when half of today’s US natural gas comes from wells drilled in the last four years – and the loss of 20 percent of American oil production and 12 percent of American natural gas production. These consequences run counter to America’s need for clean fuels and less dependence on foreign energy sources.

NOTE: Click HERE to view the full testimony.