Thirty-four oil state congressmen met with U.S. petroleum industry representatives last week in an unusual effort to seek ways to stem the decline in domestic oil production.
At a second meeting this week, representatives of independent and major companies will offer the congressmen a short list of desired legislative and regulatory changes.
The congressmen will merge those with their own ideas, assembling three or four proposals that everyone would fully support.
Several congressmen said the top priority will be a production tax credit to Weep marginal oil and as wells on stream.
'ENERGY SUMMIT'
After drafting the list, the congressmen will seek a meeting with President Clinton so they can present it to him and urge his support.
Sen. David Boren (D-Okla.), architect of the "energy summit," said 70-80 congressmen might attend that meeting, all backing the same agenda.
Boren said, "Too often, when you have 80 congressmen going to the White House, they're speaking in 80 different voices.
"I'm really optimistic. Today I heard a willingness by the industry to come together on some common proposals. What we need is a common songbook we all can sing from."
The oil state congressmen are banking heavily on an audience with the president. If Clinton declines the meeting or offers only lukewarm support, they have little chance of getting meaningful changes.
Sen. Malcolm Wallop (R-Wyo.) thinks even without Clinton's help, the oil state congressmen could get some emergency legislation passed this year, although not tax relief.
He explained that passage of a tax measure is unlikely this year, and even if there is one, "whatever we think is an emergency the two tax committees probably would not consider an emergency."
Boren acknowledged that the oil industry is in the midst of a crisis, with production dropping 25% in 5 years. "This industry is in a free fall," Boren said. "Emergency assistance is justified, just as it was for a natural disaster like the California earthquake.
"One of our problems is that this isn't an issue except in Texas, Louisiana, and Oklahoma. I don't think the rest of the country realizes there is a problem."
Although Boren still favors an oil import fee, that isn't under consideration. He explained, "As a practical matter, many people in this country are happy with low oil prices-including some in the administration."
CONGRESSIONAL SUPPORT
Last week's meeting drew 11 senators, 23 House members, and aides to another 20 or so congressmen.
Denise Bode, Independent Petroleum Association of America president, said even during the nadir of the 1980s the oil industry never received so much congressional support.
She also noted a remarkable sense of unity between majors and independents. "Everything we've been proposing would help the oil industry across the board, not just independents."
Copyright 1994 Oil & Gas Journal. All Rights Reserved.
