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For Immediate Release
February 25, 2010

Offer solutions to economic, energy, and environmental challenges; plead with policymakers on behalf of 9 million American natural gas and oil workers

(WASHINGTON)-  The Independent Petroleum Association of America (IPAA) and Independent Petroleum Association of Mountain States (IPAMS) announced today that its members will travel to Washington, D.C. next week to meet with policymakers regarding the abundant, affordable and vast domestic resources America already holds that can be used to meet economic, environmental and energy security challenges facing our nation.

Combined, IPAA and IPAMS represent more than 5,000 independent oil and gas producers and service companies that operate in 33 states and the coastal waters offshore.  In 2007, the most recent year for which data is available, the industry supported a total value added to the national economy of more than $1 trillion or 7.5 percent of the U.S. gross domestic product.  Both associations have recently amplified efforts to educate the public and policymakers on the solutions that natural gas provides and the critical role that independent energy producers play in U.S. employment and natural gas production.  IPAA and IPAMS continue to highlight the fact that 98 percent of natural gas consumed in the United States is produced in North America with Western states contributing 27 percent to our nation's natural gas supply while disturbing only 0.7 percent of public lands.

Proven U.S. reserves are now estimated at 2,000 trillion cubic feet (TCF).  This more than 100 year supply positions natural gas as a crucial component of our nation's energy portfolio for the foreseeable future. Natural gas, previously labeled a "transition" or "bridge" fuel, is now being viewed by industry and economic analysts as a foundation on which our nation will rely to generate electricity and power transportation for many decades to come.

Since natural gas is clean, it's an essential part of any plan to reduce energy emissions.  Greater energy production from intermittent sources of power like wind and solar is possible because natural gas electric generation is available to fill-in when the wind isn't blowing and the sun isn't shining.  IPAA and IPAMS will join in their message together that raising taxes and increasing the regulatory burden on the independent producers who supply 82 percent of U.S. natural gas will endanger jobs, hurt our economy and prevent President Obama and Congress from achieving their energy goals. 

"Accessing and safely producing affordable, job-creating homegrown oil and gas reserves has never been more important to the American economy or the families that rely on these resources," said IPAA President and CEO Barry Russell. "America's independent producers - who on average employ only 12 workers -will continue to work with Democrat and Republican leaders in Congress to craft policies that encourage job creation and access to more American energy. Punitive taxes and unnecessary regulatory burdens run counter to the nation's goals of new jobs and domestic energy supplies."

"History has taught us that nothing is as devastating to economic recovery as raising taxes on energy.  Increasing the tax burden on the independent producers will add inflationary pressures throughout all segments of the economy," said IPAMS Executive Director Marc Smith.  "Consumer spending accounts for two-thirds of our economy.  When consumers are forced to spend more on driving to work and heating their homes, they have less money for discretionary spending.  Raising taxes on American energy producers is the same as raising taxes on Americans-- it's that simple," concluded Smith.