News & Information » Press Releases

« Back to 2006 News Releases

U.S. Oil, Gas Producers React to State of the Union

STATEMENT BY IPAA PRESIDENT BARRY RUSSELL, WASHINGTON, D.C

"President Bush is correct that America is too reliant on oil that is often imported from "unstable parts of the world." It is equally important to recognize two other significant facts. First, energy is essential to a strong and growing economy and for the foreseeable future oil and natural gas will provide over 65 percent of that energy. Second, many alternative fuel options depend on petroleum or natural gas for their most effective development; hydrogen is a good example.

"Consequently, while the President's proposals to seek new research and development for alternative technologies are valuable steps, it is equally important to assure that the nation maximizes it domestic oil and natural gas production. In part, this means that federal resource areas, including offshore resources, need to be available to diminish reliance on unstable energy sources. This also means that federal research and development needs to be directed toward improving development of domestic oil and natural gas resources at the same time that new energy sources are being developed.

"Additionally, the President's call to develop the math, science and engineering skills of the nation and to encourage more Americans to move into these professions reflects a keenly felt problem facing domestic oil and natural gas producers as they cope with an aging workforce. Part of the challenge to produce these technological professionals is a strong educational system. In turn, the role of research and development funding to universities is a key link to meeting that challenge."

###

IPAA represents independent oil and natural gas producers and service companies, which drill 90 percent of wells in the United States, produce 82 percent of the country's natural gas, and produce 68 percent of the oil.