WATCHING GOVERNMENT CLINTON DRAWS IPAA BROADSIDE

A frustrated Independent Petroleum Association of America fired a blazing broadside last week at the Clinton administration for not helping U.S. oil producers.

Congress is adjourning without passing legislation to help producers weather a period of low prices.

George Alcorn, IPAA chairman, blames the administration's inaction: "Studies and proposals are not enough. In our view, there's been far too much talk and too little action on the issues facing America's oil and gas industry."

SUPPORT LACKING

Alcorn said the administration should have given stronger support to an industry relief package oil state congressmen proposed this year (OGJ, June 27, p. 21).

"Two years ago, then President-Elect Bill Clinton promised to 'change the situation' regarding this country's dependence on oil imports. Two years later it's business as usual."

Alcorn complained, "There are no advocates (for the oil industry) in this administration except for (Deputy Energy Sec.) Bill White and the people who work for him."

When the next Congress convenes in January, IPAA will press the administration to insert the relief package in its fiscal 1996 budget proposal.

At the top of independents' wish list is a tax credit to keep marginally economic wells on production when oil prices fall below certain levels.

IPAA has asked the Commerce Department to investigate whether low priced oil imports are hurting the U.S. industry and determine if relief is warranted under Section 323 of the Trade Expansion Act (OGJ, Feb. 14, p. 40).

That study seems to be moving slowly, and Alcorn last week asked Commerce also to examine whether current U.S. energy strategy has encouraged artificially low oil prices and what impact U.S. efforts to help Russian oil production will have on the domestic industry.

Alcorn said a recently published book claims the Reagan administration and Saudi Arabia wanted to depress oil prices in the mid-1980s to undermine the Soviet Union's economy. Alcorn wants Commerce to determine if it's still the government's policy to hold down oil prices.

"I think low oil prices are good for the Clinton economy, and this industry continues to bear the brunt for that attitude.

"Our assessment of the Clinton administration's energy policy can be summarized this way: It consists of empty promises, government inaction, and a continuation of Reagan administration policies."

POSSIBLE MERGER

Alcorn downplayed reports of a possible merger of IPAA and the Mid-Continent Oil & Gas Association.

The Oklahoma Independent Petroleum Association and some other independents think because major oil companies belong to Mid-Continent a merger could allow them to influence IPAA's actions.

Alcorn said IPAA always has been the voice of independents and "there's not a chance any of that would change."

He also denied that a merger would result in the ouster of IPAA Pres. Denise Bode. He said that question is "not on the table."