Salazar planning to meet with API board members

Nick Snow
OGJ Washington Editor

WASHINGTON, DC, Mar. 16 -- US Secretary of the Interior Ken Salazar plans to meet Mar. 19 with the American Petroleum Institute's board, which includes chief executives of several major oil companies, he said Mar. 16.

"My message to the oil companies will be simple: They are, and will remain, an important part of our energy future. We need to move forward together to build a common energy plan for America," he told reporters in a teleconference from Denver before boarding a plane to Washington.

"It's important to listen to everyone on the future of energy in America. Certainly API and its members have a stake in this. The oil and gas industry is a very important part of our energy future. Having a direct dialogue with them, giving them a chance to hear where I'm coming from as secretary of the Interior, and hearing their concerns matters to me," Salazar said.

He said several majors, such as BP PLC and ConocoPhillips already are working on clean-energy programs. "We have several areas of common ground, despite the shots you hear from both sides," he said.

API said it looked forward to speaking with Salazar about industry's role in the nation's energy future. "Especially during this tough economic environment, we need to work together on a comprehensive and realistic energy policy that encourages, not discourages, the development of all domestic energy production, including oil and natural gas," it said.

A busy week
The meeting will be part of a busy week for Salazar, which also will include a Mar. 18 trip to New Orleans for the next Gulf of Mexico oil and gas lease sale and a Mar. 17 appearance before the Senate Energy and Natural Resources Committee to discuss US conventional and renewable energy resource development plans.

Salazar said he is establishing development of renewable and alternative energy sources on US public lands as a DOI priority and as a component of a comprehensive national energy strategy to help the US reduce its dependence on foreign oil.

"Oil, natural gas, and coal will play an important role in meeting our nation's energy needs for many years to come. But our long-term economic, environmental, and national security depends on our ability to lead the clean energy revolution. Our traditional energy resources are a bridge to our clean-energy economy of the future," he said.

The strategy includes following an active oil and gas leasing schedule, according to Salazar. He said DOI will hold more than 40 major sales on public lands in 2009, which are expected to generate hundreds of millions of dollars in revenue for American taxpayers as well as billions of barrels of oil and trillions of cubic feet of gas to help meet US energy needs.

He noted that the US Bureau of Land Management has held seven onshore oil and gas lease sales in the last seven weeks, offering 830 leases covering almost 1.2 million acres in the West and selling 326 of them, totaling 254,000 acres, for more than $32 million in revenue. BLM will hold another 32 onshore oil and gas leases around the country in 2009, Salazar said.

Revenue sharing
Salazar said the US Minerals Management Service's Mar. 18 lease sale in New Orleans would offer 6,548 blocks covering 35 million acres in the Central Gulf of Mexico Planning Area and would be the first of two gulf lease sales scheduled this year. This week's lease sale includes the so-called "181 South Area," which will share federal offshore leasing revenue with coastal states for the first time, he pointed out.

Salazar also said a provision in legislation authorizing the upcoming lease sale which he helped write when he was in the US Senate directs 12.5% of the revenue directly to the Land and Water Conservation Fund's stateside grant program to protect open space and build parks. "It is America's first permanent conservation royalty of its kind, and I look forward to talking about it and President [Barack] Obama's vision for LWCF during my visit to the Gulf Coast," he said.

"We need a comprehensive energy plan that includes all aspects of energy, including oil and gas production. With respect to the ups and downs of gas prices, that really is a reflection of the failure of the US for more than 40 years to seize the opportunity to create our own energy independence here at home," Salazar said.

He said he has heard from producers that increasing royalties from production on federal lands would be unfair. "My response is that we have a responsibility to the American citizens who own public oil and gas resources to maximize the returns on their development," he said.

"Many concerns are being raised. The fact is many things in Washington are not being handled as they were in the past. President Obama and his administration have turned the page, and some people and groups may not be happy," Salazar said.

"We have an effort under way to look at royalty reform and terms for oil and gas leases. All the issues are on the table, and we will work through them as the year unfolds. We need to make sure the American citizen gets the best possible return. My second priority is to make sure that we develop funding similar to what's being used in Wednesday's lease sale for the Land and Water Conservation Fund," he said.

Contact Nick Snow at nicks@pennwell.com.

Related Articles

ConocoPhillips slashes 2015 capital budget

12/08/2014 ConocoPhillips has elected to reduce its 2015 capital budget to $13.5 billion, down 20% compared with this year’s budget. The news comes on the hee...

BLM issues final SEIS for Greater Mooses Tooth project in NPR-A

10/30/2014 The US Bureau of Land Management released its final supplemental environmental impact statement for the proposed Greater Mooses Tooth (GMT1) oil an...

Western gulf lease sale attracts $110 million in high bids

08/20/2014 Gulf of Mexico western planning area Lease Sale 238 drew 93 bids from 14 companies over 81 blocks covering 433,823 acres, totaling $109,951,644 in ...

ConocoPhillips, Enap sign deal to study unconventional oil, gas in Chile

08/06/2014 ConocoPhillips and Chile’s state oil company Empresa Nacional del Petroleo (Enap) have signed a technical agreement to jointly conduct geological, ...

Oando completes purchase of Nigeria assets from ConocoPhillips

07/30/2014 Oando Energy Resources (OER), a Calgary-based subsidiary of Oando PLC, has completed its acquisition of the Nigeria upstream business of ConocoPhil...

ConocoPhillips, Suncor join Shell in deepwater exploration off Nova Scotia

06/11/2014

ConocoPhillips and Suncor Energy Inc. are joining Shell Canada as partners in exploring the deepwater Shelburne basin off Nova Scotia.

ConocoPhillips raises estimates on Eagle Ford recoverable resources, production

04/11/2014 ConocoPhillips has increased its estimated resource base in the Eagle Ford play to 2.5 billion bbl of oil in place from 1.8 billion bbl, as well as...

ConocoPhillips reports higher 2013 earnings

02/10/2014 ConocoPhillips reported full-year earnings of $9.2 billion in 2013, an increase from the $8.4 billion totaled in 2012, which included $1.2 billion ...

ConocoPhillips reports higher 2013 earnings, expects higher production in 2014

01/31/2014 ConocoPhillips reported full-year earnings of $9.2 billion in 2013, an increase from the $8.4 billion totaled in 2012, which included $1.2 billion ...

White Papers

AVEVA NET Accesses and Manages the Digital Asset

Global demand for new process plants, power plants and infrastructure is increasing steadily with the ...
Sponsored by

AVEVA’s Approach for the Digital Asset

To meet the requirements for leaner project execution and more efficient operations while transferring...
Sponsored by

Diversification - the technology aspects

In tough times, businesses seek to diversify into adjacent markets or to apply their skills and resour...
Sponsored by

Engineering & Design for Lean Construction

Modern marketing rhetoric claims that, in order to cut out expensive costs and reduce risks during the...
Sponsored by

Object Lessons - Why control of engineering design at the object level is essential for efficient project execution

Whatever the task, there is usually only one way to do it right and many more to do it wrong. In the c...
Sponsored by

Plant Design for Lean Construction - at your fingertips

One area which can provide improvements to the adoption of Lean principles is the application of mobil...
Sponsored by

How to Keep Your Mud System Vibrator Hose from Getting Hammered to Death

To prevent the vibrating hoses on your oilfield mud circulation systems from failing, you must examine...
Sponsored by

Duty of Care

Good corporate social responsibility means implementing effective workplace health and safety measures...
Sponsored by

Available Webcasts


On Demand

Optimizing your asset management practices to mitigate the effects of a down market

Thu, Dec 11, 2014

The oil and gas market is in constant flux, and as the price of BOE (Barrel of Oil Equivalent) goes down it is increasingly important to optimize your asset management strategy to stay afloat.  Attend this webinar to learn how developing a solid asset management plan can help your company mitigate costs in any market.

register:WEBCAST


Parylene Conformal Coatings for the Oil & Gas Industry

Thu, Nov 20, 2014

In this concise 30-minute webinar, participants have an opportunity to learn more about how Parylene coatings are applied, their features, and the value they add to devices and components.

register:WEBCAST


Utilizing Predictive Analytics to Optimize Productivity in Oil & Gas Operations

Tue, Nov 18, 2014

Join IBM on Tuesday, November 18 @ 1pm CST to explore how Predictive Analytics can help your organization maximize productivity, operational performance & associated processes to drive enterprise wide productivity and profitability.

register:WEBCAST


US HYDROCARBON EXPORTS Part 3 — LNG

Fri, Nov 14, 2014

US LNG Exports, the third in a trilogy of webcasts focusing on the broad topic of US Hydrocarbon Exports.

A discussion of the problems and potential for the export of US-produced liquefied natural gas.

These and other topics will be discussed, with the latest thoughts on U.S. LNG export policy.

register:WEBCAST


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