PERMIAN BASIN PETROLEUM ASSOCIATION Midland, Texas May 8, 2001 Barry Russell President Independent Petroleum Association of America
Overview The Nature Of The Energy Problem The Issues Changes In Washington IPAA’s Role
Major Focus: Energy Policy Domestic Production Of Oil And Natural Gas Meeting Growing Future Demand For Energy
U.S.Natural Gas Demand Comparison of 1992 and 1999 NPC Study Results YEAR 1999 NPC Reference Case 1992 NPC High Case 1992 NPC Low Case Actual A C T U A LF O C U S P E R I O D E X T E N D E D V I E W 1999 NPC Range of Outcomes TRILLION CUBIC FEET ACTUAL FOCUS PERIOD EXTENDED VIEW
U.S. Natural Gas Demand by Sector
BCFD * Representing 91% of US Production Drilling Year: Pre-1990 Production Decline Rate of Base: 16%17%15%17%18%21%23% 18%19% U.S. Production History*
Natural Gas Prices (NYMEX)
Oil Rigs Natural Gas Rigs Rigs Drilling for Natural Gas Have Doubled Natural Gas Producers are Responding 488 1,125 April, 1999February, 2001
Issue: Building a Sound Energy Policy Recognize Importance Of Energy Establish Energy Advocacy –Require Consideration Of “Energy Impact” In Regulatory Decision Making
Critical Factors Access Technology Financial Requirements Skilled Workers Rigs Lead Times Requirements Of New Customers
Issue: Resource Base Knowing How Many Laws, Regulations And Conflicting Management Plans Are In Play
Issues: Access to Capital Increase Spending By $10 Billion A Year Through 2015 Double Wells Just To Deal With Natural Gas Demand Retain As Much Revenue As Possible Old And New Tax Reforms
What’s Going On In Washington Bush-Cheney National Energy Policy Task Force Transition Advisory Teams The Administration And The Agencies The Congress
Our Role In The Process Wildcatters’ PAC The Transition Congressional Hearings Congressional Oil & Gas Forum
Political Effectiveness Record-Breaking Fundraising Increased IPAA Member Involvement The Wildcatters Fund Contributed To 71 Open Congressional Seats And Competitive Races To Ensure A Pro-Business/ Pro-Oil & Gas Congress
Grassroots Activism Voter Education Guide “Get Out The Vote” Campaign
Hearings & Testimony The 107th Congress House Energy and Air Quality Subcommittee House Resources Committee House Energy and Mineral Resources Subcommittee Senate Energy and Natural Resources Committee Federal Energy Regulatory Commission Rep. Barbara Cubin (R-Wyoming) Rep. Joe Barton (R-Texas) Sen. Frank Murkowski (R-Alaska) Rep. James Hansen (R-Utah)
Congressional Oil & Gas Forum Advocacy The Oil and Gas Forum Hosted by IPAA on March 15, 2001 Drew 90 Participants and 7 Members of Congress