Marc W. Smith arrived in Washington, DC, from Denver for his latest visit on Dec. 3 as the US House leadership announced its latest energy legislation.
But the Independent Petroleum Association of Mountain States and its executive director were doing more than simply checking in with members and staffs of the 110th Congress from the Rocky Mountains. They also were preparing to mobilize 150,000 oil and gas employees and contractors in those states.
“The political landscape has changed in the Mountain West,” Smith told me on Dec. 4. “A number of state legislatures have turned anti-industry. We also have a number of new governors who don’t understand the oil and gas business. Even at the county level, support for the industry is not a long-term guarantee.”
IPAMS wants to work with state oil and gas associations on a comprehensive plan to educate and mobilize the industry’s employees and contractors in the region. The program would include a fair method of grading candidates, irrespective of their party.
Coordinated opposition
Colorado and other states’ basic political demographics haven’t changed much from the traditional urban-rural split. The primary difference, said Smith, is that industry opponents are reaching out with like-minded individuals to try and convince first, state legislatures and, second, Congress, that support for oil and gas development is waning in the West.
Misleading information comes in three basic forms, he indicated. The first is that a renewable energy economy could be achieved in 10 years. “We’re not against renewable fuels. We consistently support a diverse energy portfolio which includes them. But natural gas is critical to a secure US energy future,” Smith said.
More than half of the states with renewable portfolio standards for electricity generation list gas as the backup fuel for wind, solar and other intermittent sources, he noted. Biofuels production also requires large amounts of gas for fertilizer and for conversion from corn, cellulose, and other plants.
‘Off a cliff’
The second erroneous assumption is that the Mountain West must choose between sacrificing its scenic and recreational assets to develop energy and preserving large tracts for wildlife. The third is that nothing bad will happen if oil and gas activity in the Rockies is slowed or stopped. “They don’t appreciate that 50% of the gas we use today comes from wells drilled in the last four years,” said Smith.
Unconventional reservoirs, which currently are being produced, deplete about 50% of their reserves in the first 5 years and the remainder over 20 to 40 years, he pointed out. “If you slow down the pace of new drilling, you don’t glide into a nice supply curve. You fall off a cliff,” he said.
That’s why Smith thinks next year’s elections will be especially crucial. “Every office, from president to county commissioner, will determine how the United States faces its energy challenges,” he said.