Dan Naatz, executive vice president at the Independent Petroleum Association of America, said the group is communicating with lawmakers of both parties on the issue.
“Independent producers across the country are really concerned that the action will decimate American oil and natural gas producers,” he said. “When you talk about taking away intangible drilling costs, percentage depletion and add in a lot of other fees and costs, it really would have a negative effect on the ability of our members both to operate onshore, offshore, on federal land, on private land.”
He said that critics couch the provisions as “giveaways” to the oil and gas industry, but that the provisions are designed to encourage reinvestment. “We’re trying to talk to Democrats who are willing to listen to the consequences of passing these provisions, including significantly reduced American production, unstable consumer prices, loss of manufacturing jobs, the revenue to states,” Naatz said.
He said the focus of those discussions have been Texas Democrats in the House, but also members of Congress in Ohio, Pennsylvania, Colorado and New Mexico, where there is considerable production, along with West Virginia.
“I won’t say that everybody has listened to us and said, ‘You know, we agreed with you,’ but we’re going to continue to advocate because we believe it’s that important for the industry and for the nation,” he said.