The Domestic Energy Producers Alliance is a nationwide collaboration of 19 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.
Congress must lift the ban on US crude oil exports. The ban is a terrible relic of the Nixon era that harms the American economy. As Sen. Lisa Murkowski (R-AK) has pointed out, restrictions on oil trade effectively amount to domestic sanctions. Combined with a mismatch in refining capacity, the ban on oil exports is creating a significant discount for US light oil at no benefit to anyone except refiners and their foreign ownership. It has cost US states, producers and royalty owners $125 billion in lost revenue in four years, according to industry estimates.
Dominos have an interesting way of falling in DC. Every time someone moves up in the power structure it opens new opportunities for other Members of Congress.
When John Boehner (R-OH) recently resigned as Speaker, he was replaced by Paul Ryan (R-WI). Ryan had been Chair of the very important House Ways and Means Committee, and he was then replaced by Kevin Brady (R-TX), a senior member of HWMC. Brady moved up to Chair of the full committee, which then resulted in a reshuffling of sub-committee chairmanships.
When the dust settled, Charles Boustany, Jr. (R-LA) emerged as chairman of the Tax Policy Subcommittee which previously had been called the Select Revenue Measures Subcommittee. That subcommittee had previously been chaired by Dave Reichert (R-WA) who took on new duties as chair of the Trade Subcommittee.
As the US House of Representatives moves toward replacing Speaker John Boehner (R-OH) with Congressman Paul Ryan (R-WI), the inevitable question is how the change will affect issues that concern independent oil and gas producers.
With crystal ball firmly in hand, here are my best guesses.
On the issue of ending the 40-year ban on crude exports, the new Speaker could play a very constructive role. I say “could” because nothing is certain given the fractious atmosphere in the current Congress.
Today, the Domestic Energy Producers Alliance (DEPA), along with its 19 collaborating trade associations, and the more than 10 million American men and women whose livelihoods depend on a robust domestic oil and gas industry, commend the United States House of Representatives for the strong bipartisan vote to lift the crude oil export ban.
“Republican and Democrat members of the House came together to lift the export ban,” said DEPA Chairman Harold Hamm. “Lifting the ban strengthens the American worker and the American economy, and restores American leadership to the world. Now is the time for leaders in both chambers of Congress to come together and send final legislation to the President before the end of the year.”
DEPA President Mike McDonald said he believes the House of Representatives has done the right thing for the country.
“Our political leaders understand this is a positive step to opening free markets for U.S. crude oil, so we can enjoy all of the benefits that come with it, including lower gasoline prices for consumers, the creation of a million American jobs, and the continuation of America’s Energy Renaissance,” McDonald said.
Original, Journal Record 10/2/2015
One year into Saudi Arabia’s bold oil export strategy, it is becoming increasingly clear the kingdom’s plan to flood markets with excess crude has backfired miserably.
Sound economic reasoning would suggest a nation reliant on petroleum for 90 percent of its revenue would sell less of its crude oil when prices are low. Instead, during the current low-price environment, the kingdom has accelerated production to a record 10.6 million barrels per day as new supplies of oil from Iraq, Iran and America have emerged as a threat to Saudi market share.