The Independent Petroleum Association of America said today that Democratic presidential candidate Al Gore's US energy policy proposal would fail to improve domestic oil and gas production.
Jerry Jordan, IPAA chairman, said, "The Gore plan does little to improve domestic natural gas and petroleum production. It amounts to a continuation of the current administration's refusal to adopt a meaningful action plan to address our over-reliance on foreign oil and dwindling exploratory land inventory.
"The only nugget for domestic petroleum and natural gas producers is the vice-president's apparent commitment to extend the provisions of the Deepwater Royalty Relief Act. He had better hurry, because those terms end this year, well before President Clinton's successor will be sworn in."
IPAA noted that the National Petroleum Council, in a December 1999 study, said the US should allow more access to domestic oil and gas resources and reduce constraints on exploration such as the offshore and onshore leasing moratoria that Gore supports.
IPAA said several changes in the tax code should be made to encourage US oil and gas exploration and production.
It urged the government to allow expensing of delay rental payments and geological and geophysical costs, eliminate the net income limitation on percentage depletion for marginal wells, create a 5-year net operating loss carry-back for independents, eliminate the 65% limit on using percentage depletion, and allow a marginal well tax credit when prices are low.
IPAA said the Clinton administration has endorsed several of those changes, but Gore did not include them in his energy policy.
Jordan said, "If Vice-President Gore wants to reduce US dependency on imported oil, he must first recognize that such a policy will require more exploration and production of natural gas and petroleum.
"His proposals are long-term, and they don't address today's problems. He must boldly create policies in this country that are conducive to domestic production."