The Domestic Energy Producers Alliance is a nationwide collaboration of 25 coalition associations – from California to West Virginia, Texas to Montana – representing about 10,000 individuals and companies engaged in domestic onshore oil and natural gas exploration and production (E&P). We believe in seeking common ground, and in common sense solutions to the challenges that face us in our businesses, including our relationship with the federal legislative and executive branches of government. In only its fifth year, DEPA now represents a majority of the individuals and companies responsible for the current renaissance in American oil and natural gas production.
The oil industry in Texas and across the U.S. nervously awaited a weekly report from the U.S. Energy Information Administration (EIA) on Wednesday, and for the reaction of crude oil traders who bid on New York Mercantile Exchange (NYMEX) oil futures.
Crude oil production in the U.S. has been increasing since July from 8.458 million barrels per day (b/d) to 9.109 million b/d on March 10. Crude oil stocks had increased for nine consecutive weeks, resulting in prices declining to $47 from a high of $54 just two weeks earlier.
There was a variety of news regarding the petroleum industry last week that sent mixed signals to industry observers.
First, petroleum economist Karr Ingham said the Texas Petro Index increased again for the second month in a row. The drilling rig count, drilling permits and well completions all increased from the previous month.
Next came the news that ExxonMobil will invest $20 billion in the Gulf Coast region during the next 10 years, and increase employment by an estimated 45,000 jobs. ExxonMobil said it will strategically invest in 11 major chemical, refining, lubricant and liquefied natural gas projects in Texas and Louisiana to expand its manufacturing and export businesses.
The President, Congress, and the Texas Legislature all have been very active in implementing executive orders, legislation, resolutions, and letters to reduce the federal government’s massive regulatory overreach.
It all started with President Trump’s State of the Union address on Feb. 28, in which he said economic recovery must begin by reducing massive regulations on American businesses.
The next day he signed an executive order directing the Environmental Protection Agency to review a controversial water rule. EPA Administrator Scott Pruitt said he would quickly withdraw the rule initiated by the Obama administration's EPA.