American Oil and Gas Reporter - May 2015 - 129

ConventionSection: Oklahoma Independent Petroleum Association
a significant source of tectonic and seismic
activity, and may explain why Oklahoma
always has been more active than much
of the Mid-Continent.
"The implied fault movements (focal
mechanisms) for the majority of the earthquakes appear to be consistent with regional (natural) stresses in Oklahoma,"
the OGS says.
Oklahoma has 4,000 active saltwater
disposal wells, and 80 percent of the state
is within nine miles of at least one Class
II disposal well or enhanced oil recovery
injection well, the survey says. Identifying
possible induced or triggered seismicity
requires more scientific evidence than
simply identifying spatial correlations,
OGS holds. While the number of saltwater

disposal wells in Oklahoma has increased
during the past few years, the survey says
injection volume increases do not correlate
to changes in the state's seismicity rates.
"Most of the earthquakes are located
deeper in the crystalline basement and
not in the shallower, sedimentary section
where saltwater disposal is taking place,"
the survey says. "This does not rule out
the possibility that oil and gas activity
can trigger deeper earthquakes or that
small, shallower earthquakes can act as a
'trigger' for larger, deeper earthquakes,
but there is little, if any, direct evidence
for this in Oklahoma."
The survey and OCC, working with
the Mewbourne College of Earth and
Energy at the University of Oklahoma

and the Oklahoma secretary of energy
and environment, have secured a research
grant from the Research Partnership to
Secure Energy for America to increase
the number of monitoring stations in the
state and to conduct basic research into
the geological, geophysical and engineering aspects of induced seismicity, the
survey says.
"Seismicity is something on which
OIPA will continue to work with the
regulators at the state level, and continue
to look at best science and study the
issue, and determine the best course to
follow," Ferate says. "Certainly, whatever
recommendations the OCC determines
are appropriate, the association will do
its best to comply with."
Ì

Oklahoma Awaits End Of Export Ban
OKLAHOMA CITY-Oklahoma is no
closer than 300 miles from the Gulf of
Mexico and the international crude trade,
but the state's oil producers continue to
hope their products will join that waterborne stream someday soon.
James Roller, vice president of legislative
affairs for the Oklahoma Independent Petroleum Association, says the association
is working with industry groups such as
the Domestic Energy Producers Alliance
to remove Washington's ban on U.S. crude
oil exports. He adds the push is receiving
support from members of Congress, including Senator James Lankford, R-Ok.
"He continues to think it is a long
process, and that the industry has some
educating to do with Republicans," Roller
says. "It is interesting, but Senator Lankford thinks they have the Democratic
votes in the Senate to do something."
OIPA President Mike Terry describes
the U.S export ban as "a completely outdated policy that needs to be changed.
Getting people to support crude oil exports
would be huge right now. Cushing (Ok.)
is getting full, as are other storage sites
around the country."
Roller says a number of Republican
senators from nonproducing states have
expressed opposition to oil exports, citing
pre-election concerns that any increase
in gasoline prices will hurt their political
futures.
"There continues to be this misconception that exporting oil will raise gasoline
prices," he says. "Reports that OIPA have
analyzed indicate that is not the case, but

that is part of a larger public opinion issue.
I think some Republicans, and Democrats
as well, are nervous about potentially
lifting the export ban because of that, even
though we export refined fuels."
OIPA continues its efforts to educate
Congress about the benefits likely to result
from oil exports, Roller says, adding the
association hopes that legislation lifting
the ban will emerge soon.
Another pertinent aspect of the discussion deals with whether the Obama administration will approve the northern segment of the Keystone XL pipeline from
Canada to Steele City, Ne., Roller says.
As host to the massive oil storage system
at Cushing, which joins the northern and
southern Keystone legs, he points out
Oklahoma is a key player in that debate.
Roller adds that Keystone is not only a
political question for the state, but raises
concerns about developing the nation's
gathering systems and their related facilities.
"Because President Obama has held
this issue hostage, we have to be concerned
with what that means for long-term infrastructure development in the United
States, especially when you have a partner
such as Canada that has been pro-development," Roller says.
He points out Oklahoma's congressional
delegation continues to support oil and
gas producers' push for that infrastructure.
Taxes And Energy
OIPA also continues monitoring a
range of proposed congressional actions,

including discussions about revamping
the federal tax code and efforts to limit
the Bureau of Land Management's ability
to regulate hydraulic fracturing on public
lands, Roller says.
Oklahoma's congressional delegation
understands what tax deductions such as
intangible drilling costs and percentage
depletion mean to oil and gas producers,
Roller says. "Unfortunately, there still
are people in Washington who believe
these tax provisions are some type of
subsidy," he says. "We are trying to
protect business transactions. I think the
Oklahoma delegation understands the issues, and is solid for the industry on that
issue."
The Senate Energy and Natural Resources Committee reportedly has been
discussing comprehensive energy reform,
with Senators Lisa Murkowski, R-Ak.,
and Maria Cantwell, D-Wa., suggesting
that bipartisan legislation may emerge
soon. According to her website, Cantwell
is credited with pushing through the Energy and Security Independence Act of
2007, the last broad energy bill to pass
Congress.
Roller says today's low commodity
price environment opens a host of possibilities for enacting serious energy reform.
He adds the public is starting to glimpse
the benefits of an energy-independent
United States.
"That means something, as we really
have started to unlock new reserves,"
Roller says. "There is lots of development
now, so that new reality opens those disMAY 2015 129

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