net imports of crude & petroleum products at a 46 year low...2019/10/18 · leases, bonus...
TRANSCRIPT
Cont’d Next Page
On the next page we used an EIA chart of Ameri-
ca’s Net Petroleum Imports from 1949 to September
2019. Remember when DEPA
was spending every waking hour
working Congress to lift the crude
oil export ban back in 2015? We
had a chart we used showing
where the U.S. was at 60% im-
ports and how with horizontal
drilling and hydraulic fracturing,
we were changing that curve - low
and behold look what you guys
did! Also, at that time in 2015
when discussing lifting the ban
with members of Congress, the
number one question was always
“won’t lifting the ban and allow-
ing U.S. crude oil exports cause
prices to go up?” Our answer was “no, in fact our ex-
port of U.S. crude will stabilize world prices.” DEPA
leadership may in fact be prophets or simply under-
stand the global market much better than politicians.
he revolution in oil and gas production in the U.S.
has been nothing short of amazing. Independent
domestic producers utilizing scien-
tific and engineering breakthroughs
have established the U.S. as the
number one crude oil and natural
gas producing country on the plan-
et. Just a few years ago the domes-
tic oil and gas industry had been
counted over and done. A mature
extractive industry whose best days
were long gone. Well . . . wow take
a look at us now!
We thought everyone would like
to see in print just what our industry
has accomplished in a few short
years. The chart below showing
Net Imports of Crude oil and petro-
leum Products comes from the Energy Information Ad-
ministration (EIA). Due to space constraints we could
not reproduce every year since 1973, but in showing
1973, 1974, 2018 and 2019, it is truly remarkable how
you have sent the Net Imports into negative territory
for the first time since the 1940’s.
Dec 2019
DEPA REPORT ON INDUSTRY LEADERSHIP, LEGISLATION AND ENERGY REGULATION
DOMESTIC ENERGY PRODUCERS ALLIANCE
A Record Setting End to 2019 Net Imports of Crude & Petroleum Products at a 46 Year Low
The U.S. was a net petroleum product importer of 698,000 bpd in 2009, while so far this year, America has been a net petroleum product exporter of 3.2 million bpd according to EIA data.
U.S. Net Imports of Crude Oil and Petroleum Products
(Thousand Barrels per Day) According to EIA YEAR JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
1973 5,646 6,246 6,386 5,318 5,604 5,675 5,938 6,373 6,168 6,411 6,720 5,828
1974 5,164 5,013 5,078 5,736 6,247 6,122 6,283 6,114 5,881 5,954 6,612 6,436
2018 3,819 2,679 2,485 2,578 2,510 2,902 2,231 3,270 2,474 1,457 991 720
2019 1,589 176 842 1,017 1,583 506 1,466 849 -89
By Jerry Simmons, DEPA Executive Director
DEPA Staff Executive Board of Directors
Dan Boren Director
Ed Cross Director
John Schmitz Director
Bill Stevens Director
Harold Hamm Chairman
Mike McDonald President
Don Montgomery Vice President
Berry Mullennix Secretary/Treasurer
Jerry Simmons Executive Director
Peter Regan Congressional and Alliance Liaison
David Crane Lobbyist
Cynthia Simonds Marketing and Communications Dir.
Sarah Reece Executive Assistant
PO Box 33190 Tulsa, OK 74153 405-669-6646 [email protected]
DEPA believes in seeking
common ground, through
common sense solutions,
to the challenges facing
our industry. Our biparti-
san approach provides a
uniquely powerful voice
for our members at the
state and national level.
Did You Know... Methane Emissions are Down
14% since 1990.
Natural Gas Production
has increased more then 50%.
I want to close 2019 with some
words of encouragement to all of
you. DEPA is really operating at
a heighten level now. 2019 has
been a very good transition year
and the DEPA staff is looking
forward to 2020. That said, we
MUST continue to grow the or-
ganization. The election cycle
next year will be full of those say-
ing all manner of negative things
about our industry. We are ready
to fight back with knowledge,
facts, science and simple reality.
To carry that fight forward though
we will more than ever need your
support – working with us as well
as your financial support.
Have a wonderful holiday
season and a Happy New Year.
Please do what you can to help
DEPA fight on and prosper in
2020.
DEPA Report on Industry, Legislation and Energy Regulation December 2019 3
Passing the Baton to Brouillette Could “All of the Above” Bring Bipartisan Harmony to the DOE?
"He's like a Marine; he runs toward the sound of a battle," - Former Louisiana Rep. Billy Tauzin. Tauzin served four full terms as a Democrat before becom-ing a Republican in 1995.
“For perhaps the first time, the United States is finally embracing a true, all of the above energy policy. One that does not pick winners and losers, but instead opens the door to innovation.” Dan Brouillette during the International Energy Agency Meeting July 11, 2019, Paris
As predicted the move from Deputy
Secretary to Secretary of the U.S. Depart-
ment of Energy (DOE) went smoothly this
month for Dan Brouillette. Three decades
of experience in both the public and pri-
vate sector has given him a deep
knowledge of key policy issues.
“The No. 2s sliding into the No. 1 slots
don’t often appear at rallies or on the Sun-
day news programs. But historians noted
that their deep experience as both lobby-
ists and lower-ranking agency officials
means they know how to operate the
levers of the
federal govern-
ment to change
policy.”
- NYTimes writer Lisa Friedman in her
Oct 18, 2019 piece about Brouillette after
Rick Perry’s announcement to step down
at the end of the year.
The 70-15 confirmation vote included
support from several Democrats in oil and
gas states like Joe Manchin from West
Virginia, Bob Casey from Pennsylvania,
California’s Dianne Feinstein and Martin
Heinrich of New Mexico. This was not a
huge surprise. Brouillette has been a great
champion for rapid expansion of oil and
gas drilling and bolstering American ex-
ports. He has also been a supporter of al-
ternative energy, even an eager participant
in the Solar Decathlon. Brouillette’s “all
of the above” mentality seems to have
made him a favorite with almost everyone.
It is easy to find positive quotes about
Brouillette. His track record is not only
impressively productive, but makes him as
likeable across the aisle as anyone.
Of the 70 “yays” during the confirma-
tion vote, Democrat support also came
from nuclear and wind states like Mary-
land’s Ben Cardin, Jeanne Shaheen from
New Hampshire as well as, senators
from Washington state, Delaware and
Michigan.
In 2018, nuclear power accounted for
34.1% of all energy produced in Mary-
land. The month, the DOE awarded
nearly $3.5 million to X-Energy to fur-
ther the development of its advanced
nuclear reactor. The project will exam-
ine ways to reduce construction and
maintenance costs of the developer’s Xe-
100 reactor design. X-Energy is located
in Rockville, Maryland.
Seabrook, the largest nuclear power
reactor in New Eng
land, provided 57% of
New Hampshire’s
2018 electricity
net generation. A
requirement to pro-
duce 10% of its electricity from
in-state
renewables by 2015 has led to the con-
struction of new solar, wind and landfill
gas plants in Michigan. There are three
active nuclear power plants in Michigan,
however the Palisades Plant located on
Lake Michigan is planned to close in
2022.
Could it be that Brouillette will help
alternative energy and fossil fuels meet
in the middle on what the future for US
energy looks like?
Perhaps pragmatist Brouillette, who
has had a good deal of success breaking
through policy log jams in the past, will
be exactly what the U.S. needs right now
to bring a cooperative spirit back to the
mix in Washington. 2020 will be a fa-
tiguing political year as the perfect storm
of impeachment proceedings, presiden-
tial election, and the need for “regular
productivity” collide. However it is pos-
sible the DOE might just be the sanctu-
ary US energy needs this year as we con-
tinue to push toward energy independ-
ence and the future of American energy
development.
“...Dan’s experience in the sector is unparalleled. A total professional, I have no doubt that Dan will do a great job!“ - President Trump tweeted October 18, 2019
4 Domestic Energy Producers Alliance
In a rush to judgment, some conservation groups
place blame for every conceivable environmental mala-
dy on the development of Montana’s natural resources,
because, well, fear sells. Fear sells newspapers and or-
ganizational memberships. Fear sells political agendas
and is used to pit different segments of society against
each other using noth-
ing more than mislead-
ing information or,
more often than not,
totally false statements.
A recent op-ed
penned by a board
member and former
president of the Mon-
tana Wildlife Federa-
tion laments that the
idea of leasing public
lands for possible oil
and gas development is
a threat to sportsmen
and even more so, pre-
cious wildlife. In this
particular instance, the
greater sage grouse.
I want to address the
sportsmen issue first.
The people that work in
natural resource extrac-
tion are also sportsmen
and women. We hunt
big game and birds and
try and get in our share
of fishing. We too ap-
preciate an environ-
ment that is suited for
these activities. We
hike and camp in Mon-
tana’s great outdoors
and enjoy the time
away from our busy work schedules. We hire hunting
and fishing guides, purchase hunting and fishing gear,
and support the activities of Montana Department of
Fish, Wildlife and Parks through purchases of the ap-
propriate licenses. So, stop the “us versus them” rheto-
ric because we live here too. We ALL value conserva-
tion and protecting the place we call home.
I agree Montana’s economic livelihood is tied to our
lands, waters, wildlife and natural resources. BLM
lands are public lands, they belong to everyone, not just
members of the Wildlife Federation or other individuals
or groups that oppose multiple use. The revenue from oil
and gas leasing and
potential production is
split with the State of
Montana. For calendar
year 2018, total pay-
ments to the BLM from
Montana oil and gas
activities, oil and gas
leases, bonus payments
and royalty payments,
was approximately
$23.6 million. About
half of that amount paid
to the Federal Govern-
ment comes back to the
State, with a quarter of
that payment sent back
to the county where the
public land is located.
In 2016, Montana re-
ceived over $246 mil-
lion in tax revenue and
other fees from natural
resources above what
was received from the
BLM. These numbers
are just tax and royalty
dollars paid to the gov-
ernment and do not even
come close to industry
wages, equipment pur-
chases, and private roy-
alty payments and their
associated tax payments. This is all money that funds
education, human services, and other essential pro-
grams.
Let’s talk about sage grouse for a moment. The sage
grouse is under State management, not Federal manage-
ment. Montana currently has a robust sage grouse man-
agement program. A directive from former Secretary of
Montana’s Petroleum Industry Supports Stewardship and the Outdoor Economy
By Alan Olsen, Montana Petroleum Association
“We believe public lands are open to multiple use, and are not just reserved for the benefit of select groups. We participate in and support outdoor recreation. We are a part of the success of the outdoor recreation industry.”
This article was chosen for reprint from the Montana Petroleum Report because it applies to all states where oil and gas production and outdoor sports co-exist.
“Pennsylvania leads the US with an average of over 20 hunters per square mile (PSM). For comparison other popular white tail destinations like Michigan, Iowa and Texas only have 6.7, 4.5 and 4.4 hunters PSM, re-spectively,” according to the Quality Deer Management Association. Colorado is considered by many hunters to have the best elk hunting. The Delta in California is known for it is bass, sturgeon and is a must-fish location for all types of anglers. Head to Louisiana’s Lake Pontchartrain Basin for speckled trout or Montana’s Smith River where schools of brown and rainbow trout that can get as large as 14-16 inches.
Mr. Olsen makes a great argument in this piece that is not often consid-ered. “The people that work in natural resource extraction are also sportsmen and women….We too appreciate an environment that is suited for these activities.”
DEPA Report on Industry, Legislation and Energy Regulation December 2019 5
the Interior, Ryan Zinke instructed the BLM to ad-
here to an individual state’s sage grouse program. It
is not an easy process to permit an exploratory well
in sage grouse habitat. Along with seasonal stipula-
tions, the fees for compensatory mitigation (money
paid into the sage grouse program) can be quite
steep, in some instances approaching $150,000.00
for a drilling location. That’s on top of the cost of
drilling, associated labor and environmental costs,
and permitting fees.
If you were to drive through existing areas with
oil and gas production, you would see sage grouse,
mule deer and antelope. In some areas you will see
elk, pheasants, and sharp-tail grouse. You’d also
see coyotes, fox, eagles, hawks, ravens, and badg-
ers that all prey on sage grouse. A 2018 scientific
paper, Smith et al. Livestock Grazing and Nesting
Sage-Grouse, published in the Journal of Wildlife
Management and Wildlife Monographs shows the
impact to the bird by those predators. Of 495 sage
grouse nests monitored for that study, 51.3% were
destroyed by predators, not oil and gas develop-
ment.
Montana’s oil and gas industry has worked hard
to ensure the success of the greater sage grouse. We
have a vested interest in the bird’s survival and have shown time
after time that our support of the stewardship program keeps the
program funded and staffed. We believe public lands are open to
multiple use, and are not just reserved for the benefit of select
groups. We participate in and support outdoor recreation. We are
a part of the success of the outdoor recreation industry. We too
have a large impact on personal wealth through employment and
payments to land and mineral owners. We are an integral part of
all of Montana’s economic sectors.
Alan and his wife Jean live in rural Musselshell County Montana. With more than 40 years of experience in the oil and gas industry working for Halliburton, the Oil and Gas Division of the Montana Department of Natural Resources, and Sanjel USA, Alan knows the positive impacts responsible resource development brings to Montana and the nation. Alan served twelve years in the Montana Legislature developing energy policy as Chair-man of the House Energy Committee as well as Chair-man of the Senate Energy Committee. Alan has worked
on cross border energy issues as a delegate to the Pacific Northwest Economic Region (PNWER) and as a member of PNWER’s Bi-National Energy Working Group. As Executive Director of the Montana Petroleum Association (MPA) Alan is working to spread the word about the positive social and economic impacts the oil and gas industry brings to Montana along with representing the petroleum industry at legislative committee hearings and agency rulemaking. While serving as Executive Director of MPA he also serves on the Board of Directors of the Independent Petroleum Association of America and the Do-mestic Energy Producers Alliance.
Stewardship and the Outdoor Economy Cont’d
The Trump administration is now seeking
to reopen federal lands in Texas for leasing,
which would allow oil and natural gas compa-
nies to drill more than 1,000 horizontal wells
and 500 vertical wells across the state over a
20-year period. In a 49-page report, the U.S.
Forest Service estimates that the 1,500 wells
would require more than 5 billion gallons of
water to unlock more than 68 million barrels
of oil and more than 4.2 trillion cubic feet of
natural gas. Under federal law, the federal
government would receive 12.5 percent of the
royalties from the oil and natural gas extracted
from the forests and grasslands. The State of
Texas, nearby counties and school districts
would also receive royalties from the produc-
tion.
Currently, Rockcliff Energy, Sabine Oil &
Gas, and Aethon Energy make up the top three
drillers in the Haynesville, East Texas plays.
Jerry Jones of the Dallas Cowboys and Com-
stock Resources is working hard to become a
major producer in the region, having bought
rival Covey Park Energy in a $2.2 billion deal.
Plastics have been around since ap-
proximately 1600 BC when the people
then living in Central America first pro-
cessed natural rubber into figurines,
balls, and rubber bands. The societal
benefits to public health, safety, even
conservation of energy and materials in
our own times gets lost in the shuffle during the current heated but generally helpful
debate over better management of the plastic waste showing up in the world’s
oceans. Nice to see a very welcome move in this arena from Rick Perry’s Depart-
ment of Energy on the eve of the Secretary’s departure and return to Texas. Perry’s
DOE announced in November it will fund new projects to encourage development
of plastics manufacturers in the U.S. to increase recovery, recycling, reuse, and re-
manufacturing of plastics and other materials.
Interesting that the U.S. is trying to position the nation as a world leader in ad-
vanced plastic recycling technologies, while the European nations are sticking to the
conventional tax-and-eliminate model. My prediction is that Rick Perry’s much
more thoughtful, economically viable approach will be what ultimately prevails and
coincidently stops the stream of toss-off plastics that have been pouring without rest
down the rivers of Asia and Africa and into the sea.
Federal Lands, Done Texas Style
Different Approaches to Plastic Waste
Provided by Continental Divide International
6 Domestic Energy Producers Alliance
February
March April
May June
KIOGA April 15-17 Midyear Meeting - Clarion Inn & Convention Center Garden City, KS www.kioga.org.
Association of Energy Service Companies February 26 – 28 AESC Annual Winter Meeting Tremont Hotel, Galveston, Texas www.aesc.net
TX Alliance of Energy Producers April 28-29 2020 Alliance Expo & Annual Meeting at the MPEC Convention Center, Wichita Falls, TX TIPRO’s 74th Annual Convention
March 23-24, Hilton Anatole Hotel Dallas
Calendar of Collaborating Association Events
The Oil and Gas Collaborating Associations across the country do a great job
offering continuing education, information on industry hot topics and network-
ing opportunities.
Don’t miss these events!
TIPRO’S 74th Annual Convention will bring together Texas produc-ers, mineral owners, policymakers, industry experts and other oil and gas professionals to review evolving policies and other trends that will
impact you in 2020 and beyond. www.tipro.org
The Annual Meeting will host an Expo, Outside Equipment Showcase, Golf Tournament, Oil Patch Reception, Country & Western BBQ (featuring the best ribs in Texas!), industry speakers, two General Sessions, Breakfast & Luncheon. Come meet the top industry professionals from all over the country.
The AESC annual meeting brings upstream well servicing providers and their suppliers together annually to review issues related to technology, political landscape, regulatory affairs, annual HSE Safety Awards, and other committee reports as they pertain to the oil and gas upstream industry. This is the 64th annual meeting to be held by the association.
California Independent Petroleum Association June 4-7, Annual Meeting, Santa Barbara, CA For more information contact [email protected]
Colorado Oil & Gas Association January 16 Day at the Capitol, Denver CO Come to the State Capitol to meet your elected officials and share about what you do every day to provide Colorado with the energy needed! Register to attend at www.coga.org/events
Colorado Oil & Gas Association
Feb 21, Mardi Gras Ball Exdo Event Center
Mardi Gras Ball is the signature event of COGA, benefiting a different philanthropic organization each year. Focused on positive community impacts. Join us to celebrate those who have best represented the core values of the industry. This year's program will be emceed by former
Bronco, Reggie Rivers. www.coga.org/events
Illinois Oil & Gas Association March 3-5 Annual Convention & Trade Show Oil National Events Plaza, Evansville IN www.ioga.com/events
Independent Oil & Gas Assoc of West Virginia
January 21-22, Winter Meeting
Marriott Town Center Charleston WV www.iogawv.com
Louisiana Oil & Gas Association April 6 Haynesville Shale Golf Classic Southern Trace Country Club Shreveport
Designed by Arthur Hills, this championship 18-hole, 6,916 yard golf
course was voted #1 in the state by Golf Digest magazine.
Louisiana Oil & Gas Association Sporting Clays Shoot June 5, Los Paloma sporting Range, Benton LA
This is 100% networking, bringing together the Ark/La/Tex oil & gas industry to network and celebrate the busiest drilling and production scene in Louisiana
Kentucky Oil & Gas Association 84th Annual Conference, Campbell House, Lexington KY For more information visit www.kyoilgas.org/events
Ohio Oil & Gas Association March 4-6 Annual Meeting Hilton Columbus At EastonColumbus OH www.ooga.org/events or [email protected]
The Petroleum Alliance of Oklahoma May 5, Sine Die Harn Homestead OKC
Celebrate the conclusion of legislative session with this fun-filled charity event featuring live music, libations and BBQ. www.thepetroleumalliance.com
The North Dakota Petroleum Council May 19-21 Bismarck Event Center, Bismarck ND
The Williston Basin Petroleum Conference is the largest con-ference and trade show in the nation focused on the Bakken, Three Forks and Williston Basin. We’re proud to bring togeth-er some of leading experts on breakthrough technologies, ener-gy markets, potential untapped formations, the regulatory envi-ronment, and more. www.wbpcnd.com
Utah Petroleum Association January 13-14 Annual Meeting
Sundance Mountain Resort, Sundance UT www.utahpetroleum.org/events
January
DEPA Report on Industry, Legislation and Energy Regulation December 2019 7
August
September
October is traditionally
Energy Awareness Month.
Be sure to participate!
November December
KIOGA August 16-18, 2020 - Annual Convention & Expo - Century II Performing Arts & Convention Center - Wichita, Kansas www.kioga.org.
Colorado Oil & Gas Association
August 18-19, Energy Summit 2020
More info soon www.coga.org/events
Independent Petroleum Association of New Mexico July 22-24, Annual Meeting, Hotel Chaco Albuquerque Plans are moving forward for another exciting agenda filled with great speakers and activities for our members, including our Annual Golf Outing. Sponsorships are available! More information at www.ipanm.org/2020-annual-meeting
Louisiana Oil & Gas Association
September 15-16 2020 Southern Energy Conference
DoubleTree by Hilton, Lafayette LA
www.logo.la/event-calendar
Louisiana Oil & Gas Association
November 3 (Tentative), 2020 State of the Industry: Houma
Courtyard Marriott, Houma, LA
www.logo.la/event-calendar
Western Energy Alliance July 29-31 Annual Meeting Location TBA www.westernenergyalliance.org
The North Dakota Petroleum Council NDPC Annual Meeting Date TBA, Fargo NC www.wbpcnd.com
The North Dakota Petroleum Council August 26ND OilPAC Golf Tournament Medora, ND www.wbpcnd.com
The North Dakota Petroleum Council Bakken Classic Fishing Derby July 15,
New Town, ND www.wbpcnd.com
July
DEPA Executive Director, Jerry Simmons, has a variety topics he can present at your event.
• Things Everyone in the O&G Industry Should Know
• The DEPA Federal Agenda
• The War on Fossil Fuels • Reidentification: Explaining Our Industry to Legislators Visit our website to request an appearance in our “contact” tab.
#TeamDEPA
October
8 Domestic Energy Producers Alliance
allowed on the Senate floor) the best bet is a
quick trial in the Senate.
The White House and House Democrats also an-
nounced a deal on the United States-Mexico-Canada
Agreement (USMCA). Speaker Pelosi announced a House
vote on the USMCA as well next week. Given the close
sequence of the Impeachment and USMCA votes the Sen-
ate will not take final action on the USMCA until after Im-
peachment. Majority Leader McConnell has stated that the
USMCA will follow immediately after final votes on im-
peachment. It was also announced on Thursday the US and
China have reached a trade agreement averting additional
tariffs and the beginning of rolling back some current tar-
iffs in return for Chinese concessions including lowering
trade barriers and purchasing more
US agricultural products.
It was also announced Thurs-
day (December 12, 2019) that Con-
gressional and White House negoti-
ators have reached agreement on an
FY 2020 spending package that
would forestall the need for another
stop-gap spending measure and
avert a potential government shut-
down. The measure will likely be
broken into two separate “minibus” bills allowing for dif-
ferent combinations of Republicans and Democrats to pass
each measure.
All of this sets up a rather surreal final week of Con-
gress in 2019. With the House of Representatives sand-
wiching a vote on impeaching the President between major
bi-partisan votes handing the same President victories on a
major North American trade agreement as well as key
spending priorities.
As a final note, in the absence of a major revelation (and
there is no sign of revelation on the horizon) the Democrat-
ic House will impeach the President and the Republican
Senate will acquit the President. After an FBI investigation
that began before President Trump was sworn into office,
culminating with Mueller Report absolving the President of
any collusion with Russia. After a ceaseless two-year ef-
fort by House Democrats to reverse the outcome of the
2016 election through Impeachment. After an unprecedent-
ed avalanche of negative media from every corner of the
world. President Trump is still standing and ending the
year having been impeached by the House, acquitted in the
Senate and with two major trade agreements and a compre-
hensive spending agreement to carry the government
through the 2020 fiscal year. The establishment won’t have
much to celebrate over the holidays. For the rest of Ameri-
ca its shaping up as a pretty good year.
As Congress races to wrap up business before the hol-
iday recess the stage is set for a surreal last week of ac-
tion in Washington. House Democrats are moving to a
quick vote to impeach President Trump while simultane-
ously cutting deals on trade and spending in order to
shore up those freshmen Democrats elected in Districts
carried by the President in 2016.
On the impeachment front the House is expected to
vote as early as Tuesday (December 17, 2019) on two
Articles of Impeachment - Obstruction of Congress and
Abuse of Power. With no signs of Republican defections
the most likely outcome is a virtual party line vote with
the possibility of a small handful
of mostly Trump-District Demo-
crats breaking ranks to vote
against impeaching the President.
Senate Majority Leader
McConnell has signaled the Senate
will conduct the trial in January.
Negotiations on how the Senate
will manage the impeachment trial
will not begin until a final vote in
the House. McConnell has pro-
posed two options. A short trial, with House Managers
and the President’s lawyers making their respective argu-
ments followed by a vote. The second option would be a
full trial with each side calling witnesses, a process that
could go on for weeks. McConnell has characterized this
as Mutual Assured Destruction and is strongly pushing
for a short Senate trial. With five Democrat Senators and
Independent Bernie Sanders running for the Democratic
nomination, and with Senate rules requiring that all Sena-
tors be seated all day, Monday through Saturday during
an impeachment trial (with no use of electronic devices
Legislative Wrap Up for 2019
Board of
Directors Meeting April 2
Venue TBA
Come for
the meeting, stay for the
cherry blossoms.
DEPA Report on Industry, Legislation and Energy Regulation December 2019 9
Legislative Sessions Member Spotlight Rick
Muncrief Rick Muncrief is the Chairman and
CEO of WPX Energy. He also serves
on the board of the American Petrole-
um Institute (API) and is the Chairman of the Ameri-
can Exploration & Production Council (AXPC).
Rick joined the DEPA Board of Directors in 2019. He
is a petroleum engineer who has nearly 40 years of
upstream and midstream experience. He joined WPX
after five years with Continental Resources where he
was Senior VP of Operations and Resource Develop-
ment.
Since his move to WPX in May 2014, Rick has led an
$8 billion portfolio transformation, quickly shifting
WPX’s emphasis from natural gas to oil and focusing
on two core areas: the Permian and Williston basins.
He has spent the majority of his career in the Rocky
Mountain and Mid-Continent regions, including 27
years with ConocoPhillips, Burlington Resources and
their predecessor companies in technical and leader-
ship roles.
WPX's board named Rick as Chairman of the company
in December 2016. He has a Bachelor of Science de-
gree in Petroleum
Engineering Technol-
ogy from Oklahoma
State University.
He is a member of
the Tulsa Chamber of
Commerce, serves on
the national advisory
board for Gilcrease
Museum and is a sup-
porter of Columbia
University's Center
on Global Energy
Policy.
State Convene Adjourn
Alabama February 4 May 19
Arizona January 13 April 25
Arkansas April 8 May 7
California January 6 August 31
Colorado January 8 May 7
Florida January 14 March 13
Georgia January 13 March 27
Idaho January 6 March 27
Illinois January 8 *
Indiana November 19 March 13
Iowa January 13 April 21
Kansas January 13 May 11
Kentucky January 7 April 15
Louisiana March 9 June 1
Massachusetts January 1 *
Michigan January 8 *
Minnesota February 11 May 18
Mississippi January 7 March 10
Missouri January 8 May 30
Montana No regular session
Nebraska January 8 April 23
Nevada No Regular Session
New Jersey January 14 *
New Mexico January 21 February 20
New York January 8 *
North Carolina May 13 July 3
North Dakota No Regular Session
Ohio January 6 December 31
Oklahoma February 3 May 29
Pennsylvania January 1 December 18
Rhode Island January 1 *
South Carolina January 14 *
South Dakota January 14 March 30
Tennessee January 14 April 22
Texas No Regular Session
Utah January 27 March 12
Virginia January 8 March 8
Washington January 13 March 7
West Virginia January 8 March 7
Wisconsin January 14 May 13
Wyoming February 10 March 6
*Legislature meets throughout the year
10 Domestic Energy Producers Alliance
Keep an eye on the Saudi state-run oil behemoth, Ar-
amco, which should clock in this month as the largest
initial public offering in history. Aramco is already the
world’s most profitable company but recent attacks and
continued regional unrest has diluted much of its luster.
Combined with only a promise for accounting transpar-
ency, it appears that global capital raised is significantly
short of Aramco’s $2 trillion goal. If successful, the
massive IPO’s impact should go far beyond the global
energy industry. Analysts expect much of that IPO cash
to be deposited in the Saudi sovereign wealth fund called
the Public Investment Fund (PIF) – and that could be
good news for innovative tech startups worldwide.
THE SHALE REVOLUTION Back on this side of the Atlantic,
the Shale Revolution has changed the
energy profile of America. It had its
origins in the first wells drilled by
fracking pioneers like Harold Hamm,
who came up with the idea in the
1990s to use horizontal drilling and
hydraulic fracturing in North Dako-
ta’s Bakken region, and then the pro-
cess found perfection with George
Mitchell in the oil and gas fields to the West of Fort
Worth. The methods have been successfully followed by
industry leaders and by young equity-backed hard
chargers who made their first millions flipping leases
and drilling horizontal wells from the Permian to the
Marcellus.
Shale has transformed not just America but the entire
global energy industry. According to the Council of Eco-
nomic Advisers, the astonishing increase in U.S. produc-
tion – giving us true energy independence and made pos-
sible by the shale revolution – saves Americans on aver-
age $2,500 for a family of four in lowering electric bills
and reducing gasoline prices at the pump.
CHEAP MONEY DRIES UP Yet, while American wells continue to produce oil
and the savings per U.S. family increase, cheap invest-
ment money that was flowing freely to the industry until
lately has now dried up and new major players buying
equity for their first-time industry exposure are mostly
gone. There are now fears of an oversupply.
Gone too are the days of hundred-million-dollar equi-
ty commitments or buyouts completed by a handshake or
bar-napkin deals at NAPE. Sluggish returns and com-
modity prices, ESG, environmental, social and corporate
governance, and a millennial belief in the “Green New
Deal” seem to be having an effect on the industry.
As Harold Hamm, chairman and CEO of Continental
Resources Inc., put it, “there is a war on energy” and
together we need to engage the enemy. Look beyond the
headlines: Affordable energy produced under reasonable
regulations and by responsible operators has reduced
emissions by 15 percent since 2007. It seems counterin-
tuitive, but it takes energy to provide clean air and water
and American oil and gas producers are actually leading
the fight toward that goal.
Oversupply followed by the reduction in available
capital, and now overleveraged producers unable to find
an exit or be saved by commodity prices, most likely
means this: Consolidation by the ma-
jors will likely increase in 2020. The
current model is broken, and many
companies and investors are stuck.
But delivering and sharing messages
of clean energy, American jobs, na-
tional security and uplifting the mid-
dle class should still be our mission
heading into the next decade.
MORE ON GEORGE MITCHELL: Texas George Mitchel made some amazing contribu-
tions to our current energy independence. George
passed in 2013, but a new biography of Mitchell, written
by Texas Monthly columnist
Loren Steffy, captures that life
remarkable but also features
Mitchell’s thoughts on sustain-
ability. He was a founding fa-
ther of hydraulic fracturing but
also developed the first master
planned sustainable communi-
ty, The Woodlands community
outside of Houston.
Mitchell wrestled with the
conflict in the later years of his
life and was always searching for and funding solutions.
Writes Steffy: “Sustainable development has created
more livable neighborhoods and greater harmony with
nature even as it has added to the problems of urban
sprawl and increased demand for electricity and gaso-
line.” His legacy and mission lives on in The Cynthia
and George Mitchell Foundation.
Following the Aramco IPO Money Provided by Continental Divide International
DEPA Report on Industry, Legislation and Energy Regulation December 2019 11
Advertise in the DEPA Driller
The DEPA Driller is the way to get noticed
by the decision-makers who can grow your
business. Our membership is made up of our
country’s top oil and gas executives and
associations. Show them you care about
protecting this industry by supporting their
organization. As DEPA fights for domestic
energy production in Washington, D.C. we
all win!
• With the commitment to a nine month
contract, and at least a half page space,
your company will also be acknowl-
edged as a DEPA event sponsor for one
event happening twelve months from
contract execution.
• With just a half page/one year
commitment your company will be
acknowledged as an event sponsor of
one event AND will be placed on our
website for a consecutive three months
as a DEPA supporter.
• New issues release at the end of each
month.
• Issues are emailed AND printed for
maximum reach.
• If you don’t have an ad, we can build
you one! Choose your contract length.
Choose from seven set display sizes,
or contact us for a custom size!
• Ad deadline is the 10th of each month.
• Contact: Cynthia Simonds
Get your message exactly where you want it!
Size 1 mo. 3 months 6 months 9 months 12 months
Full
Page
$1,000
$2,640 $880 per ad.
Save $360
on the total con-
tract, or $120 per
ad from the one
month rate.
$4,920 $820 per ad.
Save $1,080
on the total
contract, or $180
per ad from the
one month rate.
$6,750*
$750 per ad.
Save $2,250 on
the total contract,
or $250 per ad
from the one
month rate.
$8,400** $700 per ad.
Save $3,600
on the total
contract, or $300
per ad from the
one month rate.
Half
Page
H
$500
$1,320
$440 per ad.
Save $180 on the
total contract, or
$60 per ad from
the one month rate.
$2,460
$410 per ad.
Save $540 on the
total contract, or
$90 per ad from
the one month rate.
$3,375*
$375 per ad
Save $1,125 on the
total contract, or
$125 per ad, from
the one month rate.
$4,200**
$350 per ad.
Save $1,800 on
the total contract,
or $150 per ad,
from a one mo rate.
Half
Page
V
$500
$1,320
$440 per ad. Save
$180 on the total
contract, or $60
per ad from the
one month rate.
$2,460
$410 per ad. Save
$540 on the total
contract, or $90 per
ad from the one
month rate.
$3,375* $375 per ad. Save
$1,125 on the total
contract, or $125
per ad from the
one month rate.
$4,200**
$350 per ad.
Save $1,800 on
the total contract,
or $150 per ad from
the one month rate.
Banner
Third
$336
$887
$296 per ad.
Save $123 on the
total contract, or
$41 per ad from
the one month rate.
$1,653
$275.50 per ad.
Save $363 on the
total contract, or
$60.50 per ad from
the one month rate.
$2,268
$252 per ad.
Save $756 on the
total contract, or
$84 per ad from
the one month rate.
$2,823
$235.25 per ad.
Save $1,209 on
the total contract,
or $100.75 per ad
from a 1 mo. rate.
Quarter
Page
$252
$665
$221 per ad.
Save $93 on the
total contract, or
$31 per ad from
the one month rate.
$1,239
$206.50 per ad.
Save $273 on the
total contract, or
$45.50 per ad from
the one month rate.
$1,701
$189 per ad.
Save $567 on the
total contract, or
$63 per ad from
the one month rate.
$2,117
$177 per ad. Save
$900 on the total
contract, or $75
per ad from the
one month rate.
Banner
Quarter
$252
$665 $221 per ad. Save
$93 on the total
contract, or $31
per ad from the
one month rate.
$1,239
$206.50 per ad.
Save $273 on the
total contract, or
$45.50 per ad from
the one month rate.
$1,701
$189 per ad. Save
$567 on the total
contract, or $63
per ad from the
one month rate.
$2,117
$177 per ad. Save
$900 on the total
contract, or $75
per ad from the
one month rate.
Eighth
Page
$126
$333
$111 per ad. Save
$45 on the total
contract, or $15
per ad from the
one month rate.
$620
$103 per ad. Save
$138 on the total
contract, or $23 per
ad from the one
month rate.
$850
$94 per ad. Save
$288 on the total
contract, or $32
per ad from the
one month rate.
$1,059
$88.25 per ad.
Save $453 on the
total contract, or
$37.75 per ad
from a 1 mo. rate.
18%
Discount
25%
Discount
30%
Discount
*In addition to the print ad, get acknowledged as a DEPA event sponsor, for one
event in the 12 months after contract execution.
**In addition to the print ad, get acknowledged as a DEPA
event sponsor, for one event in the 12 months after contract
execution AND have your company logo placed on our web-
site for three consecutive months as a DEPA supporter.
12%
Discount
Domestic Energy Producers Alliance
P.O. Box 33190
Tulsa, OK 74153
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