American Oil and Gas Reporter - June 2017 - 112

ConventionSection: Kentucky Oil & Gas Association
Time For The Turn?
As he considers the health of Kentucky's oil and gas industry, Royster acknowledges that lackluster commodity
prices remain a drag on new activity.
Kentucky Oil & Gas Division Director
Dennis Hatfield spoke at a KOGA meeting
this spring and indicated permitting activity
was at an all-time low, Royster says, but
there are reasons to believe that may be
changing.
"The natural gas price dictates activity
here, especially for the small mom-andpop companies, who mostly are focused
on weathering the storm," Royster adds.
"Everyone wants to be in position for
higher prices. Does it seem like things
are turning? I think everyone is hopeful."
Sawyers concurs that the mood among
Kentucky producers seems more positive.
However, he observes, even though some
operators are taking encouragement from
relatively stable commodity prices and
new administrations in Washington and
Frankfort, many companies are not yet
revising their 2017 budgets.
"There is a little more drilling activity
in western Kentucky's Illinois Basin oil
fields, though not anywhere near where
we would like," he reports.
And while activity is even more subdued in eastern Kentucky's Appalachian
Basin, Sawyers says, even a portion of
that gas-heavy province is the subject of
some whisperings and intrigue. "Everyone
is keeping their eyes on the Rogersville
Shale in Northeast Kentucky," he relates.
Royster mentions hearing murmurings
about deep well tests around that area,
which he deduces are associated with
the Rogersville. Should a resource play
take shape in Kentucky, Sawyers predicts
it is likely to more resemble activity in
more northeastern Marcellus and Utica
plays than the more marginal vertical
wells common further south.
"The Rogersville Shale has the potential
to change the landscape of Kentucky's
natural gas industry," he reasons. "We
don't yet have any new information, but
you can hear rumors about potential infrastructure buildouts, new investments
and more if it goes well."
Fortunately, Sawyers adds, the area's
history suggests a surge in activity will
not be an unpleasant shock to its system.
"It is a traditional energy-producing region
of Kentucky, where people are accustomed
to drilling and mining," he describes. "I
think new activity would be welcome.
There have been a lot of public meetings

KOGA Annual Meeting
Lexington, Ky.
Tuesday, July 18

8:30 a.m. Golf Tournament, Marriott Griffin Gate Golf Course
Noon Registration Opens, Marriott Griffin
Gate
5-7 p.m. Welcome Reception

Wednesday, July 19

8 a.m. Registration and Continental Breakfast, Marriott Griffin Gate
9 a.m.-4 p.m. Program Sessions
Welcome, KOGA President Maurice
Royster, EQT Corp.
Washington Policy and Politics Panel:
Dan Naatz, Independent Petroleum Association of America; Jim Elliott,
Spilman Thomas & Battle
State and Local Policy and Politics Panel
Cyber Security, Karen Kahle and Susan
Pauley, Steptoe & Johnson PLLC
Understanding the Global Petrochemical
Market, Tracie McCall, Marathon Petroleum Company
12:30 p.m. Awards and Membership
Luncheon
Speaker: Jackie Stewart, Energy In Depth
KOGA General Membership Meeting
Announcement of KOGA Board of Directors
Presentation of Bob Alley Service
Award
5-6:30 p.m. Exhibitor Reception
6:30 p.m. PAC Dinner and Auctions

Thursday, July 20

8:30 a.m.-Noon Program Sessions, Marriott
Griffin Gate
Industry Outlook 2017 and Beyond, Brian
Habacivch, Constellation Energy
Marginal Well Methane Studies
Rogersville and Emerging Shale Plays,
John Hickman, Kentucky Geological
Survey

over the past few years to discuss the potential implications."
Strength Through Numbers
KOGA has spent the past couple months
finishing its membership drive, and the
association expects to continue building
its base, Sawyers says. "There has been
some shifting," he characterizes. "Some
historic members change their business
structures or retire, meanwhile, other companies get interested in Kentucky's opportunities and become members."
Companies are attracted to KOGA
when they recognize the value it provides,
Sawyers says, but there are different ways
to demonstrate that. He and KOGA Asso-

112 THE AMERICAN OIL & GAS REPORTER

ciate Director Laura Cole readily tout the
association when they encounter potential
members, Sawyers says, but the time and
opportunities to do so are limited.
"It is critical we engage and mobilize
the Board of Directors and KOGA's key
advocates to tell the association's story
within their realms of influence," Sawyers
continues. "We have a good story to tell,
from the organization we provide in
Frankfort, the resources at our disposal
to advocate on the industry's behalf and
our efforts to make sure important issues
get proper attention."
Moreover, he concludes, oil and gas
producers are like any other group: The
best methods for communicating with
them varies widely. "We have members
who are accustomed to being reached in
different ways-from our newsletter to
social media-so we have to use every
format," Sawyers details.
When he encounters an industry colleague who does not belong to KOGA,
Royster says he often points to the example
of well-organized, focused and effective
fossil-fuel opponents. "We have to step
up and combat what is thrown at us," he
advocates. "Our industry's survival depends
on our ability to come together with a
unified voice to tell our story."
Arguably, the anti-industry attacks have
intensified since the industry's slowdown,
he points out, noting that anti-oil and gas
activists increasingly are protesting pipeline
construction even as they continue to sow
doubts about the safety of hydraulic fracturing. "Paying membership dues and sponsoring association events may seem like a
luxury in a time like this, but it is actually
more critical than ever to join and support
the industry association," Royster remarks.
"Our association and the groups it works
with fight that anti-fossil fuel message so
it does not go unanswered. Everybody
needs to pull together. I recently have
noticed that some folks have renewed their
memberships as a result of seeing KOGA's
effectiveness in action, and I have seen
new members join when they realize KOGA
can speak on their behalf and do something
they are unable to do for themselves."
Making sure Kentuckians both in and
outside the industry continue to get that
message will remain a priority, he vows.
"During our board retreat in August 2016,
the importance of communication emerged
as the underlying theme," Royster recounts.
"During the past several months, we have
increased our communications and gotten
our message to members internally, but

American Oil and Gas Reporter - June 2017

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