The Environmental Protection Agency’s proposed changes give drillers more time both between inspections and to repair leaks when they happen, according to the proposal. Industry groups had said the Obama-era requirements were overly burdensome and unrealistic. “For too long, the federal bureaucracy has buried our industry in unnecessary and often duplicative red-tape,” Barry Russell, the head of the Independent Petroleum Association of America, said in a statement.
The U.S. Environmental Protection Agency on Tuesday issued proposed improvements to the 2016 New Source Performance Standards for the oil and gas industry. The agency said its targeted improvements would “streamline implementation, reduce duplicative EPA and state requirements and significantly decrease unnecessary burdens on domestic energy producers.” Barry Russell, president and CEO of the Independent Petroleum Association of America (IPAA), said, “This proposal not only reassures America’s continued path toward global energy leadership, but also continues to protect the environment and communities where energy production is located. It is important for the states to play an important role in decisions that affect their citizens, industries and natural resources.”
Although each event affected the nations’ power grids differently, there was one consistent result: The natural gas system continued to serve regional grids reliably throughout each one. A review of performance in Florida, the Gulf Coast and northeastern states during and after these three weather events was recently published by analytics expert RBN Energy, on behalf of the Natural Gas Council. RBN found that natural gas convincingly and consistently rose to the challenge of each event. In fact, the system performed remarkably.
As the oil and gas industry grapples with tariffs on imported steel and a byzantine process for bypassing them, the Independent Petroleum Association of America (IPAA) urged the Trump administration to “understand and address” the unintended consequences of both actions, especially the increased burden on the industry’s small businesses.
In a four-page fact sheet updated last month, IPAA argued that the administration’s 25% tariff on steel imports, in effect since March, have caused prices for domestically produced oil country tubular goods (OCTG) and line pipe (LP) to increase.
Lobbyists for industries working around the species argue that its range has ballooned 100-fold since getting federal protection and that the beetles are able to be raised in captivity for reintroduction into the wild. “The [Fish and Wildlife] Service should be expending its time on imperiled species,” Sam McDonald, the director of government relations for the Independent Petroleum Association of America, told The Washington Post by email. “The American burying beetle isn’t one of them.”
With 6 months having passed since US President Donald Trump announced his intention to impose a 25% tariff on steel imports, the oil and gas industry is still trying to figure out their footing in a newly developing economic reality. The tariffs and import quotas imposed on exporting countries have upped the project costs, and the process by which companies can apply for exclusions for specific steel products has been criticized as opaque, confusing, and slow.
Industry, though, questions whether domestic suppliers will manufacture the type of steel it needs. “The steel industry will say we can make the steel and then the exclusion is denied, but I don’t know if anyone has figured out whether they can make all the steel that is requested in all the exclusions,” IPAA Executive Vice President Lee Fuller said.
A spokesperson for the Independent Petroleum Association of America said the group is optimistic that the changes would “continue to promote the conservation of protected species and their habitats…” and give their members “the flexibility and business certainty needed for the safe and responsible development of America’s public lands.”
A spokesman for the Independent Petroleum Association of America told OGJ: “We’re optimistic that these modest improvements to the ESA will continue to promote the conservation of protected species and their habitats, while allowing our member companies the flexibility and business certainty needed for the safe and responsible development of America’s public lands.”
Several past IPAA Chairmen of the Board are mentioned in this opinion piece on the importance of oil and natural gas industry trade associations and the desire of these leaders to serve and give back to an industry in which they have spent their lives and built their companies.
The Independent Petroleum Association of America’s (IPAA) Sam McDonald told the hearing that, “At its original passage, the ESA received much fanfare and virtually no opposition. However, since that time, it has evolved into one of the most litigious statutes on the books.”
Industry officials say the administration’s efforts to establish import quotas for specific countries are even more concerning than the tariffs. “What I am most concerned about is a quota that would come in and prevent me from buying the pipe,” Independent Petroleum Association of America vice president Lee Fuller said.
“We, like every other industry, are very concerned about the use of steel tariffs and their impact on trade and retaliation from other countries,” Lee Fuller, executive vice president with IPAA, said in a phone interview. But of greater concern is quotas established by the negotiation of bilateral agreements with other countries to curb imports and remove the tariffs, he said.
Oil is priced globally. Increased U.S. production has had an effect on moderating prices, but it likely can’t make a sizable dent on its own, said Frederick Lawrence, vice president of economics and international affairs with IPAA. Many of President Trump’s supporters work in fuel-intensive industries and are more sensitive to gas price spikes, Lawrence said. But he predicted that the market will “cool down” after summer’s peak driving season. That could alleviate voter anxiety as fall elections roll around.
Lee Fuller, a vice president at oil and gas trade group Independent Petroleum Association of America, said it is requesting the administration “look at better alternatives than they have so far.” The IPAA favors granting more tariff exclusions to products not typically made in the United States, including certain specialty steel used in oil drilling.
The Independent Petroleum Association of America (IPAA) praised the House Committee on Natural Resources for easing regulations related to oil and natural gas development on public lands. IPAA represents independent producers that develop 90 percent of America’s oil and natural gas wells.
When members of the Organization of the Petroleum Exporting Countries and their partners meet and likely ease their oil output caps, there’s one group of energy stakeholders that won’t be watching too closely: small American oil exploration and production companies. Frederick Lawrence, vice president of economics and international affairs at the Independent Petroleum Association of America, said the United States has its own “growing pains” and problems independent of OPEC.
Ahead of the hearing, the Independent Petroleum Association of America (IPAA) sent a letter to Committee Chairman Rob Bishop (R-Utah) expressing its support of the bills under consideration that they call “common-sense onshore regulatory reform bills.”
Pipeline capacity to move oil to Gulf Coast refineries and export hubs remains woefully short, driving the U.S. benchmark West Texas Intermediate to $10 below the international benchmark, Brent crude. Frederick Lawrence, vice president of economics and international affairs at the Independent Petroleum Association of America, said the two benchmarks were not moving in unison as they once did. If Brent slides, that doesn’t mean WTI will.
Up to half of the specialized pipe and tubular steel products that the industry relies on are imported, according to the Independent Petroleum Association of America—meaning energy companies will need to suck up nearly the entire 25% price increase, absent any tariff exemptions.
The Independent Petroleum Association of America and Western Energy Alliance — along with Wyoming, Montana, Texas and North Dakota — have long opposed the regulation as a costly overreach by Obama officials. The Trump administration is working on a rewrite that would erase many of the safeguards.
Samantha McDonald, director of government relations for the Independent Petroleum Association of America, told the approximately 125 at the conference the IPAA is monitoring several issues, from methane emissions regulations to the Bureau of Land Management’s venting and flaring rules to Waters Of The U.S. to the North American Free Trade Agreement to possible steel tariffs.
The Independent Petroleum Association of America (IPAA) urged U.S. Secretary of Energy Rick Perry on Thursday to refrain from imposing U.S. Department of Energy (DoE) emergency authorities that would provide support to a particular class of power plants.
The implications of renewed sanctions on this market are hard to pinpoint… U.S. shale players are already chugging away in a market full of complications. “We are exporting more. We are more of a global player. We are increasing production like rarely seen before. We are stepping in.” said Frederick Lawrence, vice president of economics and international affairs for IPAA.
“IPAA is pleased to see BSEE is taking a closer look at the technically-flawed Well Control Rule, which missed the mark on improving the safety of America’s offshore oil and gas operations,” Daniel T. Naatz, IPAA’s senior vice-president of government relations and political affairs, said.
Let’s be clear, the overly strict enforcement of incidental take against American industry under MBTA is about hamstringing vital economic development and energy production, MBTA applies to direct take, writes Samantha McDonald, director of government relations for IPAA.
“Unfortunately, the tactics of environmental groups [remain] the same, attempting to use the Endangered Species Act to advance an anti-hydrocarbon agenda and halt meaningful business development at the expense of American taxpayers,” said Samantha McDonald, the Independent Petroleum Association of America’s director of government relations.
“We were pleased to see workable changes are being considered to the rule that more accurately represent the scope of power and authority given to the BLM for regulating this type of activity,” IPAA official Dan Naatz said in a news release. “… We hope to work with the Trump administration toward a final rule that properly addresses waste prevention, while protecting American jobs, reducing unnecessary regulatory burdens, and ensuring continued economic growth.”
“We were pleased to see workable changes are being considered to the rule that more accurately represent the scope of power and authority given to the BLM for regulating this type of activity,” IPAA’s Dan Naatz said in a statement.
“We welcome the opportunity to talk about reasonable development of oil and natural gas resources on federal lands,” said IPAA Senior Vice President of Government Relations and Political Affairs Dan Naatz. “We need to make sure, as we always have, that these activities are designed to protect the environment.”
Dan Naatz, vice president of government affairs for the Independent Petroleum Association of America, cheered the latest court decision. “A new rule is coming out,” he said. “The agency is taking comments on it now.” Trying to enforce Obama-era rule in the meantime would only cause confusion, he added.
Dan Naatz, who handles government affairs for the Independent Petroleum Association of America, says a federal court in Wyoming’s decision to halt core parts of the Bureau of Land Management’s methane venting and flaring rule is commonsense. “Not only are our members not able to comply, the agency is not ready to try to tackle all this.”
A product exemption granted for one company will not automatically transfer to other companies, Commerce said, unless the agency approves a broad exclusion. This creates the risk that small oil and gas companies will “bear the brunt of the increased costs” because they lack the resources to file tariff exemption paperwork, the Independent Petroleum Association of America said.
“If the application process is on a per-product basis, we’re fearful small- and medium-sized businesses will bear the brunt of the increased costs,” Neal Kirby, spokesman for the Independent Petroleum Association of America, which represents independent oil and natural gas producers, previously told the Washington Examiner. “Similar to additional government regulations, these businesses don’t have the resources or manpower to apply for a waiver for each imported steel and aluminum product they rely on.”
Part of Trump’s platform when running for the president was on bringing back the steel industry and winning this fight with China, said vice president of the Petroleum Association, Lee Fuller in an interview. “There is a risk to his entire energy agenda, energy dominance, national security, if the steel tariffs have the effect of suppressing the development of U.S. oil and natural gas,” he said. “That’s not consistent with his other objectives.”
Neal Kirby, spokesman for IPAA, which represents independent oil and natural gas producers, said an exemption could be beneficial depending on how it’s applied. “Steel imports are essential to our industry and imports comprise up to half of the U.S. supply for the specific quality of steel in the Line Pipe and OCTG marketplace,” Kirby told the Washington Examiner. Industry would be interested in an exclusion – preferably an industry-wide exception.”
“American energy dominance, economic prosperity and environmental safety are all inextricably linked. We must do everything we can to produce the energy we all rely upon each day, while safeguarding the communities and environments we all cherish. But doing so requires a smart regulatory framework that supports growth, not hinders it,” writes IPAA President and CEO Barry Russell.
The Independent Petroleum Association of America and the Western Energy Alliance yesterday moved to join the Bureau of Land Management in fending off new litigation from California and environmentalists seeking to revive the agency’s Obama-era fracking rule.
The savings expected under this week’s methane proposal are particularly meaningful for small producers, said Dan Naatz, senior vice president of government relations and political affairs for IPAA. “We welcome the opportunity to talk about reasonable development of oil and natural gas resources on federal lands,” he said. “We need to make sure, as we always have, that these activities are designed to protect the environment.”
“We’re not trying to push people into our industry,” said Anne Ford, executive director of the IPAA/PESA Energy Education Center, which partners with Houston ISD on the Energy Institute High School. “We’re trying to open their eyes to the opportunities in our industry, because it’s vast.”
Independent Petroleum Association of America Pres. Barry Russell said, “With new pipeline infrastructure, additional carbon reductions can be made and can benefit communities across America. Increased use of gas not only benefits the environment, but also provides national security and economic benefits, such as jobs and tax revenue.”
“For the first time in nearly a decade, the United States, under President Trump’s administration, has begun recognizing and utilizing our own energy resources as a strategic, American asset,” Independent Petroleum Association of America President and CEO Barry Russell said. “The impacts of America’s energy resurgence are being felt around the world.”
As divestment activists gear up for another year, it is important to keep in mind the ineffectiveness, cost, and ultimately counterproductive nature of this strategy, writes Jeff Eshelman, senior vice president for operations and public affairs of IPAA.
The Independent Petroleum Association of America will be listening for details on [the infrastructure] front, said spokesman Neal Kirby. “Energy infrastructure plays an important role in helping our member companies get their products safely and efficiently to new markets,” he said.
Industry groups that chafed under Obama’s regulations say they’re pleased with what Trump has achieved so far. “We were excited by what we saw in 2017,” said Dan Naatz, senior vice president of government relations and political affairs at IPAA. “The administration got off to a strong start in reshaping and rebalancing American energy development. It was a look at putting in thoughtful policies, in contrast to the challenges we faced in the Obama administration.”
According to a new survey of 3,000 pensioners from Spectrem Group, 88 percent of respondents believe their pension fund should be “focused on generating returns; it shouldn’t be making investment decisions on the basis of politics.” New York should listen to its pensioners and say no to this costly, empty gesture, or its retirees and taxpayers will be left to foot the bill, writes IPAA Senior Vice President Jeff Eshelman.
Entering 2018, even as it is seeing the benefits of relaxed regulation under a new administration, the US exploration and production industry nonetheless is facing significant challenges, Barry Russell, the leader of the Independent Petroleum Association of America said in an interview.
IPAA vice president Susan Ginsberg called FERC’s order “sound and in keeping with the overwhelming documentation submitted by a diverse group of interested parties. “Even the organized markets stated there is no grid reliability emergency,” Ginsberg said. “FERC took the reasonable, conservative approach to initiate a new proceeding to further evaluate the resilience of certain bulk power systems.”
Susan Ginsberg, the Independent Petroleum Association of America’s vice-president of oil and gas regulatory affairs, said the national organization of upstream independents found FERC’s reasoning and resulting order to be sound, and in keeping with the documentation submitted by a diverse group of interested parties.
The oil and gas industry, also championed by Trump, similarly feels let down by an administration it had hoped would strip away government interference, said Susan Ginsberg, a senior vice president of regulatory affairs for the Independent Petroleum Association of America, which represents small oil and gas companies.
The Independent Petroleum Association of America said opening new areas to leasing would increase knowledge about potential resources and help companies make decisions about where to invest while boosting development of America’s abundant energy resources.
Independent Petroleum Association of America Pres. Barry Russell said: “Expanding access to additional offshore reserves allows the US to better understand where production potential exists and where capital should be invested. Although this is just the first step in a long process, today’s proposal is exactly the signal industry needs to drive this work forward.”
The Trump administration proposed opening nearly all U.S. offshore waters to oil and gas drilling, a move aimed at boosting domestic energy production. Industry groups welcomed the announcement. “Expanding access to additional offshore reserves allows the United States to better understand where production potential exists and where capital should be invested,” said Independent Petroleum Association of America senior vice president Dan Naatz.
“The rescinding of this burdensome rule … will save our member companies and those operating on federal lands hundreds of millions of dollars in compliance costs without any corresponding safety benefits,” Barry Russell, president and CEO of the Independent Petroleum Association of America, said.
Divesting from fossil fuels has real costs for colleges like Johns Hopkins — endowment costs that are transferred to students with no benefit to the environment, writes IPAA Senior Vice President Jeff Eshelman.
“The rescinding of this burdensome rule, which was never enacted due to IPAA and Western Energy Alliance’s ongoing legal challenge, will save our member companies and those operating on federal lands hundreds of millions of dollars in compliance costs without any corresponding safety benefits,” IPAA President and CEO Barry Russell, said.