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U.S. Oil, Gas Producers ‘Astonished’ at Senate Inaction on Energy

The Senate today again defeated a proposal to increase American energy production, a move that goes against the recommendation of national energy experts, including the trade association that represents the nation’s 5,000 oil and natural gas producers.  In a separate move, the Senate agreed to legislation that would halt shipments to the Strategic Petroleum Reserve.

 “The Senate, with the legislation debated today, had the power to begin increasing America’s own energy supplies – a move that would have sent a signal to consumers and other nations that the United States is on its way to finding better solutions to our foreign oil dependence,” said Barry Russell, president and CEO of the Independent Petroleum Association of America (IPAA), a group who represents the companies that develop 90 percent of America’s oil and natural gas wells.  “We’re astonished, but not surprised.  The Senate’s disappointing vote shows that once again, after our history of dependence on foreign oil and the more recent record high prices, policymakers have not made any progress to alleviate this threat to our economic and national security.”

 The proposed, defeated amendment (identical to S. 2958, the American Energy Production Act) was offered by Senate Minority Leader Mitch McConnell (R-KY) and Senator Pete Domenici (R-NM), ranking member of the Senate Energy and Natural Resources Committee.  Among other things, it would have given state governments more rights to open their offshore waters to oil or natural gas development; expedited the permitting process on federal lands; and encouraged the development of non-traditional energy resources such as oil shale.

 Russell continued:  “We have substantial oil and natural gas resources here at home, but they remain off-limits.  It’s time to recognize that our nation wants and needs this energy.  And, no one can produce it as efficiently and safely, with the protection of an extensive government oversight process, as the American oil and natural gas industry.”

Strategic Petroleum Reserve.  IPAA does not have an official policy on the Strategic Petroleum Reserve, but understands the economic sense of halting shipments at this time of high prices.  “However, we cannot fail to recognize that our true, strategic petroleum reserve is the oil and natural gas resources we have under American soil.  Congress must understand that increased American oil and gas production is one of our most important solutions for the foreseeable future,” said Barry Russell, president and CEO of the Independent Petroleum Association of America.

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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.