Where Congress fits in 2016

Feb. 1, 2016
Despite its being an election year, Congress still is an important part of Washington oil and gas associations’ 2016 federal strategies. But those efforts will need to reflect changes in US Senate and House dynamics in 2015 and earlier, association officials told OGJ.

Despite its being an election year, Congress still is an important part of Washington oil and gas associations’ 2016 federal strategies. But those efforts will need to reflect changes in US Senate and House dynamics in 2015 and earlier, association officials told OGJ.

One change was for the better. Democrats and Republicans ended years of partisan standoffs in November and December to pass two significant bills. One included a provision ending the 40-year-old ban on exports of US-produced crude oil. Democrats accepted it in exchange for reviving expired alternative and renewable energy research and development tax credits.

“The crude export repeal drove a lot of Congress’s deal-making,” American Petroleum Institute Pres. Jack N. Gerard said. “Once everybody saw the momentum, they tried to get on the bus.” The impending removal of Iranian sanctions also had an impact: Federal lawmakers began asking themselves how constituents would react to that country’s regaining access to global crude markets if domestic producers remained shut out, Gerard told OGJ.

“I expect Congress to continue pushing back,” he said. “It’s difficult because the president vetoes everything it does. But it has oversight authority which we hope it will use.”

But experienced federal legislators are retiring sooner, Interstate Natural Gas Association of America officials observed. “The average tenure for a House or Senate member now is lower than 20 years ago, either because they don’t want to spend that much time in Congress, or they’re increasingly challenged in primaries,” said Martin E. Edwards, INGAA’s vice-president for legislative affairs.

Lawmakers with less oil and gas issues experience puts a premium on associations’ education efforts, INGAA Pres. Donald F. Santa added. “Also, the shale revolution has created more producing states, which has changed where members fall out on these issues,” he said.

More community outreach

Producers more aggressively engage with communities as a result, noted American Exploration & Production Council Pres. Bruce Thompson. “Being in Pittsburgh’s suburbs is different than being in Custer County, Okla.,” he said.

The National Ocean Industries Association would like to see a Mid-Atlantic lease sale in next 5-year US Outer Continental Shelf program. “Members of Congress from southeastern coastal states have been great to work with, but they’re getting mixed messages now from voters, particularly in the House,” NOIA Pres. Randall B. Luthi said.

Educating lawmakers, their staffs, and voters will remain crucial, association leaders agreed. Many will continue to bring their members and others to Washington for meetings in call-ups.

“You don’t see as many diehard members of Congress now who consider oil and gas their main issue,” said Independent Petroleum Association of America Senior Vice-Pres. of Regulatory Affairs Susan W. Ginsberg