American Oil and Gas Reporter - August 2022 - 34

ConventionSec tion: Petroleum Association of Wyoming
" Those issues are challenging everybody, "
Obermueller concurs. " It is tough
to find equipment and people to do the
work, particularly for small-to-midsize
companies. "
Although the entire U.S. labor market
has been tight this year, Milczewski says,
the issue is particularly acute in an industry
for which training and experience are
pivotal. The oil and gas industry draws
from a much smaller pool than sectors
such as retail or food service, which have
gentler learning curves and lower risks.
" Safety is always the top concern, and
every company across Wyoming's oil and
gas industry wants every worker to go
home safe each night, " he emphasizes.
" But safety is a culture that takes time. Instilling
that culture is particularly important
for anyone working on an oil rig, so as
operators look to bring on new people, we
are spending a lot of time on training. "
Federal Frustrations
PAW is seeking to lay the groundwork
for further growth at a time in which
business challenges are only one sort of
industry constraints, Milczewski relates,
noting that the federal government owns
more than 60% of the minerals within
Wyoming's borders. Although many policymakers
in Cheyenne want the industry
to produce those minerals, he indicates,
many Washington officials have proven
less amenable.
" So much of our natural gas production
is tied to federal minerals. The state has
been trying to establish policies that will
help operators continue to operate on
public lands and especially to produce
federal minerals on federal lands, but the
regulatory environment likely remains
our key challenge, " Milczewski identifies.
According to Obermueller, split estate
situations, in which the government owns
the minerals and the surface belongs to a
private land owner, are particularly common
in the Powder River Basin. " That is
an inherent conflict, " he describes. " Sometimes
those get worked out and sometimes
not, but it is not a great set up for positive
relations. It takes a lot of time and effort
for both sides to reach an agreement, and
there are always efforts to try to tip the
scales one way or the other. "
Unfortunately, Obermueller reflects,
President Biden's actions to frustrate
federal mineral development command
much of PAW's attention. Unlike President
Obama, who would at least tout the marked
oil and gas production growth that occurred
34 THE AMERICAN OIL & GAS REPORTER
during his watch, Obermueller contrasts,
the Biden administration does not even
pay insincere lip service to supporting
federal oil and gas development.
" It is openly hostile and does not pretend
otherwise, " he describes. " Biden administration
spokespeople openly say it
is administration policy to end drilling
on public lands. It is no secret. They
don't hide from it. They do not dissemble.
That is their own words. "
Although such bluntness is a little refreshing
because it helps clarify the battle
lines, Obermueller acknowledges, it also
shows the depth of the administration's
animus. " The only reason we had the
first federal lease sale in more than 18
months this summer is because the federal
courts required it, " he comments.
And the Bureau of Land Management
only offered the sale after slashing the
number of available parcels more than
80% (AOGR, June 2022, pg. 16). " Despite
the fact that table scraps were about all
the administration left, the lease still garnered
more than $13 million in new revenue, "
Obermueller says.
But that was only a fraction of what it
should have been, Milczewski concurs,
noting complaints to that effect have been
voiced not only by numerous PAW members,
but also Wyoming Governor Mark
Gordon. " We will not see the full impacts
of these decisions for several years, " Milczewski
predicts. " Our state will realize
about $6 million from that lease sale. In
years past, those lease sales provided the
state with tens of millions of dollars. "
As much as operators may dislike
miniscule lease sales, the consequences
may prove worse for Wyoming schools,
he warns, which receive the bulk of the
state's share of leasing revenue. " School
districts rely almost completely on mineral
income, " Milczewski notes. " As lease
sales become more uncertain, Wyoming
policymakers are going to face difficult
challenges. In a few years, it not only
will be tough to build new schools, but
also to fund even basic maintenance and
upkeep on the existing schools. There
are broad impacts across a wide range of
budget issues for the entire state. "
Rockies Petroleum Conference
PAW has recast its annual meeting as
the Rockies Petroleum Conference, Milczewski
reports. " We have established
this conference to reflect the reality that
many of our member companies operate
across basins in the Rocky Mountains, "
he describes. " The policy discussion in
one state often travels to another and
ideas migrate across borders.
" Operators are working across diverse
geographic boundaries and political jurisdictions, "
he adds. " PAW thinks it will
help our members to have broader discussions
that reach beyond Wyoming so
we can pick up best practices from other
states and help export some of the good
ideas that originated in Wyoming. The
conference is an effort to provide a platform
for members to get together. "
" I am excited for it, " Obermueller affirms.
" We are broadening the appeal and
impact with some pretty great speakers. "
Among the scheduled presenters he
mentions are former U.S. Vice President
Mike Pence and Continental Resources
Chief Executive Officer Bill Barry.
" Pence's keynote address will be on
Thursday, Aug. 25, " Obermueller says.
" Of course, there also will be various
break-outs and other speakers. I am looking
forward to it and hope there will be
record-breaking attendance. "
According to Milczewski, the tight-knit
membership makes every PAW convention
feel almost like a class reunion. " Wyoming
is geographically large, and often has been
described as a small town with really long
streets, " he compares. " Getting back together
in person in the summertime is an opportunity
we look forward to every year. We
see old friends and hear about what is
going on in various basins. "
❒
POLICY. . . . . . . . . . . .
FROM PAGE 30
the Obama administration. She is quoted
as estimating the bill's ratio of pro-environmental
provisions as " 10-to-1 " over
ones of which she disapproves.
KIOGA notes that the outlook for the
bill is by no means assured. " U.S. Senate
President Pro Tempore Patrick Leahy, DVt.,
is out with complications from a
broken hip so Majority Leader Schumer
doesn't have the votes to pass reconciliation
until Leahy returns. The reconciliation procedure
requires that all members be present
from start to finish, " the association notes.
" All this is to say the Senate vote on
the Inflation Reduction Act will likely roll
to September-where it will face a big
squeeze because of the need for a continuing
resolution to fund the government and because
the Obamacare premiums are likely
to skyrocket, " the association predicts.
" This increases the urgency to get the
subsidies passed under reconciliation. " ❒
American Oil and Gas Reporter - August 2022

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