NPRA asks House leaders to resist contradictory energy policy

Nick Snow
Washington Editor

WASHINGTON, DC, Aug. 25 -- Opening limited areas of the Outer Continental Shelf while enacting so-called "Use it or lose it" legislation and other counter-productive measures would be a mistake, said National Petrochemical and Refining Association Pres. Charles T. Drevna on Aug. 22.

"NPRA applauds Congress for initiating a serious dialogue about expanding domestic energy production. Unfortunately, recent statements indicate Congress may soon consider legislation that would only open limited portions of the [OCS] for domestic production and tie that policy to measures which could ultimately counteract the very supply increases our nation is hoping to achieve," he said in a letter to US House Speaker Nancy Pelosi (D-Calif.) and Minority Leader John Boehner (R-Ohio).

"Such contradictory policies have the likely potential to threaten American energy supplies and security," he observed.

In addition to the "Use it or lose it" proposal, which many congressional Democrats say will pressure oil and gas producers to move faster on leases they already hold, Drevna also criticized calls to release crude oil from the Strategic Petroleum Reserve to bring prices down, to make oil and gas companies ineligible for the federal tax code Section 199 manufacturing deduction, and to change existing Gulf of Mexico lease contracts.

"Unilaterally changing existing contracts would establish a dangerous precedent regarding confidence in the government to honor its contractual obligations. This could open the door for foreign state-owned companies to gain a foothold on US OCS energy production and cost American jobs," he warned.

He urged the House's Democratic and Republican leaders to fully consider the adverse impacts of such proposals as legislation develops. "Congress should not only open the entire OCS to energy exploration and production with no strings attached, but should also look to open portions of the Arctic National Wildlife Refuge legally singled out for future oil and gas exploration," Drevna said.

"The question of domestic energy production is particularly important considering the fact that nationally-owned foreign oil companies control over 80% of global oil production, with public investor-owned companies in control of only about 13%," he continued.

Drevna's letter followed one that American Petroleum Institute Pres. Red Cavaney wrote US senators on Aug. 13 criticizing a proposal by a bipartisan group of 10 senators to open more of the OCS while imposing at least $30 billion in new taxes on oil and gas producers. Cavaney has said the so-called "Gang of 10's" plan was "light on new production and heavy on new taxes."

Contact Nick Snow at nicks@pennwell.com

Related Articles

Shell creates Caribbean unit, appoints Prado to head

08/19/2015 Royal Dutch Shell PLC has reported it has created an English and Dutch Caribbean region to be headquartered in Trinidad and Tobago. Shell has said ...

BHP Billiton most active in ‘disappointing’ western gulf lease sale

08/19/2015 Just 5 companies submitted 33 bids on 33 tracts in Gulf of Mexico western planning area Lease Sale 246, the US Bureau of Ocean Energy Management (B...

CNOOC signs PSCs with Roc Oil for two blocks in South China Sea

08/19/2015 China National Offshore Oil Corp. Ltd. has signed production sharing contracts with Roc Oil (China) Co. for two blocks in the Pearl River Mouth bas...

Bounty moving towards production in Tanzania

08/19/2015

Bounty Oil & Gas NL, Sydney, is finally moving towards production in its Kiliwani North gas discovery in Tanzania.

MARKET WATCH: NYMEX crude prices decline on unexpected US inventory jump

08/19/2015 Crude oil prices on the New York market increased on Aug. 18, but the upward momentum was short-lived as a report from the US Energy Information Ad...

Fire-shuttered Al-Shuaiba refinery to restart soon, KNPC says

08/19/2015 Kuwait National Petroleum Co. (KNPC) plans to restore operations at its 200,000-b/d Al-Shuaiba refinery within the coming days after an Aug. 17 fir...

US House leaders press BP for answers on Whiting refinery outage

08/18/2015 Leaders in the US House of Representatives are demanding answers from BP PLC regarding the early August unplanned and still ongoing shutdown of a m...

EPA proposes methane emissions requirements for oil, gas industry

08/18/2015 The US Environmental Protection Agency has proposed requirements aimed at reducing emissions of methane and volatile organic compounds (VOC) from a...

Pennsylvania’s governor issues crude-by-rail study he commissioned

08/18/2015 Pennsylvania Gov. Tom Wolf (D) issued a study he commissioned in late April of issues stemming from the growing number of crude oil shipments by ra...
White Papers

UAS Integration for Infrastructure: More than Just Flying

Oil and gas companies recognize the benefits that the use of drones or unmanned aerial systems (UAS) c...

Solutions to Financial Distress Resulting from a Weak Oil and Gas Price Environment

The oil and gas industry is in the midst of a prolonged worldwide downturn in commodity prices. While ...
Sponsored by

2015 Global Engineering Information Management Solutions Competitive Strategy Innovation and Leadership Award

The Frost & Sullivan Best Practices Awards recognise companies in a variety of regional and global...
Sponsored by

Three Tips to Improve Safety in the Oil Field

Working oil fields will always be tough work with inherent risks. There’s no getting around that. Ther...
Sponsored by

Pipeline Integrity: Best Practices to Prevent, Detect, and Mitigate Commodity Releases

Commodity releases can have catastrophic consequences, so ensuring pipeline integrity is crucial for p...
Sponsored by

AVEVA’s Digital Asset Approach - Defining a new era of collaboration in capital projects and asset operations

There is constant, intensive change in the capital projects and asset life cycle management. New chall...
Sponsored by

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by

Asset Decommissioning in Oil & Gas: Transforming Business

Asset intensive organizations like Oil and Gas have their own industry specific challenges when it com...
Sponsored by
Available Webcasts


The Resilient Oilfield in the Internet of Things World

When Tue, Sep 22, 2015

As we hear about the hype surrounding the Internet of Things, the oil and gas industry is questioning what is different than what is already being done. What is new?  Using sensors and connecting devices is nothing new to our mode of business and in many ways the industry exemplifies many principles of an industrial internet of things. How does the Internet of Things impact the oil and gas industry?

Prolific instrumentation and automation digitized the industry and has changed the approach to business models calling for a systems led approach.  Resilient Systems have the ability to adapt to changing circumstances while maintaining their central purpose.  A resilient system, such as Maximo, allows an asset intensive organization to leverage connected devices by merging real-time asset information with other critical asset information and using that information to create a more agile organization.  

Join this webcast, sponsored by IBM, to learn how about Internet of Things capabilities and resilient systems are impacting the landscape of the oil and gas industry.

register:WEBCAST



On Demand

Taking the Headache out of Fuel License and Exemption Certificates: How to Ensure Compliance

Tue, Aug 25, 2015

This webinar, brought to you by Avalara, will detail the challenges of tax document management, as well as recommend solutions for fuel suppliers. You will learn:

-    Why it’s critical to track business partner licenses and exemption documents
-    The four key business challenges of ensuring tax compliance through document management
-    Best practice business processes to minimize exposure to tax errors

register:WEBCAST


Driving Growth and Efficiency with Deep Insights into Operational Data

Wed, Aug 19, 2015

Capitalizing on today’s momentum in Oil & Gas requires operational excellence based on a clear view of what your business data is telling you. Which is why nearly half* of oil and gas companies have deployed SAP HANA or have it on their roadmap.

Join SAP and Red Hat to learn more about using data to drive process improvements and identify new opportunities with the SAP HANA platform running on Red Hat Enterprise Linux. This webinar will also show how your choice of infrastructure impacts the performance of core business applications and your ability to achieve data-driven insights quickly and reliably.

*48% use SAP, http://go.sap.com/solution/industry/oil-gas.html

register:WEBCAST


OGJ's Midyear Forecast 2015

Fri, Jul 10, 2015

This webcast is to be presented by OGJ Editor Bob Tippee and Senior Economic Editor Conglin Xu.  They will summarize the Midyear Forecast projections in key categories, note important changes from January’s forecasts, and examine reasons for the adjustments.

register:WEBCAST


Emerson Micro Motion Videos

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected