As oil prices rise, independents urge Congress to change course
As oil prices approach $100/bbl, eight associations representing US independent producers asked Congress to consider the consequences of passing legislation that would further reduce US supplies.
Nick Snow
Washington Editor
WASHINGTON, DC, Nov. 14 -- As oil prices approach $100/bbl, eight associations representing US independent oil and gas producers asked Congress to consider the consequences of passing legislation that would reduce domestic supplies further and increase prices even more.
"Increasing taxes on the industry by $16 billion to pay for renewable fuels, restricting development of federal lands (onshore and offshore), and implementing new and unnecessary environmental restrictions doesn't produce additional American oil or natural gas. As a matter of fact, these policies would be counterproductive and increase prices to consumers," the associations said in a Nov. 7 joint statement released Nov. 13 by the Independent Petroleum Association of America.
"The failed energy policies since the 1970s have been a major contributor to the decline in US oil production from 9 million b/d to 5 million b/d, and the rise in imported oil from 5 million b/d to 12 million b/d. If the bills being pushed by the [congressional] leadership pass, that trend will continue, and prices to consumers will rise and become even more volatile," they indicated.
The Texas Alliance of Energy Producers, Texas Independent Producers & Royalty Owners Association, Ohio Oil & Gas Association, Kansas Independent Oil & Gas Association, Oklahoma Independent Petroleum Association, Independent Oil & Gas Association of West Virginia, and the Independent Oil & Gas Association of Pennsylvania also signed the statement, which the groups developed during IPAA's 2007 annual meeting.
Contact Nick Snow at nicks@pennwell.com.