Watching Government: Rockies producers make their case

April 11, 2011
Rocky Mountain independent oil and gas producers arrived in Washington, DC, for their annual spring call-up on Apr. 4. More than 250 meetings with federal lawmakers and regulators were scheduled.

Nick Snow
Washington Editor

Rocky Mountain independent oil and gas producers arrived in Washington, DC, for their annual spring call-up on Apr. 4. More than 250 meetings with federal lawmakers and regulators were scheduled.

The legislative landscape changed slightly after November's elections returned control of the US House of Representatives to Republicans. They also brought several new House members to town who might not have been acquainted with oil and gas issues before they were elected.

A challenge, an opportunity

Independents from the Rockies saw both a challenge and an opportunity to explain how more US production could accelerate a general US economic recovery amid overseas supply concerns resulting from political unrest in the Middle East and North Africa.

"The Obama administration and several members of Congress want to improve air quality," Marc W. Smith, executive director of Denver-based Western Energy Alliance, told OGJ. "Natural gas is a part of the equation," he said.

Smith said he sensed heightened interest in the House now in understanding economic realities.

"Most states are experiencing budget shortfalls and are looking for ways to jump-start their economies," he noted, adding, "More oil and gas activity can generate revenue and investments."

Ongoing benefits

Officials from Rockies communities, state legislatures, conservation groups, and farmers and ranchers joined the independents.

One of the first points they intended to make involved economic benefits, according to Dan Larsen, external affairs advisor at Enerplus Resources (USA) Corp. in Denver.

The company has operated for years in Montana, North Dakota, and Saskatchewan, he told OGJ.

Citing a statistic that 225,000 jobs are generated for each 1 million b/d of new production, Larson added that benefits continue well beyond initial leasing.

"We've seen new police stations and schools in several towns that weren't there when we arrived," he said.

Smith said the Obama administration is in a tough position because its policies have overtly delayed or discouraged US onshore production growth on public lands.

"There needs to be leadership at the top to allow projects to go responsibly forward," he suggested.

"It's encouraging to hear the administration and both political parties state that we need more domestic production," he said.

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