American Oil and Gas Reporter - March 2023 - 29

Congressional Leaders
Getting Repeated Chances
To Learn Industry Views
Last month, the Independent Petroleum Association of
America leadership was active on Capitol Hill and in the field
as we showcased federal policies' impact on independent producers.
The IPAA government relations team and our volunteer
leaders on the Board of Directors have established strong relationships
with the committees in the U.S. House of Representatives
that have jurisdiction over issues that affect oil and natural gas
production. During the previous month alone, IPAA has been
invited to participate in three congressional hearings, two of
which were in Washington, and one a field hearing in Midland.
In early February, I testified in a House Energy and Commerce
Joint Energy, Climate & Grid Security Subcommittee and Environment,
Manufacturing & Critical Materials Subcommittee
legislative hearing titled: " Unleashing American Energy, Lowering
Energy Costs and Strengthening Supply Chains. " Other witnesses
included former U.S. Deputy Secretary of Energy Mark Menezes,
former Federal Energy Regulatory Commissioner Bernard McNamee,
and representatives from the National Mining Association,
Earthjustice and Public Citizen.
My opening statement made a few key points:
·
If America does not pursue a thoughtful energy policy,
the nation's economy will suffer.
· Through the efforts of independent producers, America is
leading the world with a healthy oil and natural gas industry
that benefits America.
· IPAA supports HR 150, the " Protecting American Energy
Production Act " by Representative Jeff Duncan, R-S.C., and
HR 484, the " Natural Gas Tax Repeal Act " by Representative
August Pfluger, R-Tx.
HR 150 prohibits a presidential moratorium on the use of
hydraulic fracturing unless Congress authorizes one. The bill
also expresses the sense of Congress that states should maintain
primacy for the regulation of hydraulic fracturing for oil and
natural gas production on state and private lands.
HR 484 would strike language designed to establish a tax on
natural gas imposed on America's independent oil and gas producers
as part of HR 5376, the " Inflation Reduction Act " that
Congress passed last year.
During the hearing, lawmakers asked me about topics that
ranged from oil and gas exports, hydraulic fracturing and importance
of state primacy, and how the methane tax in HR 5376
would impact producers.
On Feb. 16, IPAA Chairman Steven Pruett testified in a bipartisan
House Energy and Commerce Committee Subcommittee
on Energy, Climate and Grid Security field hearing in Midland
titled: " American Energy Expansion: Improving Local Economies
and Communities' Way of Life. " Pruett is president and chief
executive officer of Midland-based Elevation Resources. Joining
Republicans such as Duncan and Pfluger, as well as committee
Chair Cathy McMorris Rodgers, R-Wa., were representatives
Scott Peters, D-Ca. and Tony Cardenas D-Ca.
Pruett's opening remarks pointed to three factors limiting
growth in U.S. oil and gas production:
implementation of the methane tax, capital " Pruett also responded to questions on
investment, supply and demand,
infrastructure, other industries' dependence
on oil and gas, and more.
"
· the impact of regulatory uncertainty;
· Permitting delays; and
· Labor and supply chain shortages.
Pruett also responded to questions on implementation of the
methane tax, capital investment, supply and demand, infrastructure,
other industries' dependence on oil and gas, and more. Others
testifying were Midland Mayor Lori Blong, who is also president
of Octane Energy; Chairman of the Midland Hispanic Chamber
of Commerce Adrian Carrasco, who is also president of Premier
Energy Services; and professor of biology and geosciences
Michael S. Zavada, who chairs The University of Texas-
Permian Basin's geosciences department.
IPAA members were again represented on Capitol Hill in a
Feb. 28 House Natural Resources Committee legislative hearing
to consider bills that would impact federal lands production.
IPAA Chief Operating Officer and Executive Vice President
Dan Naatz spoke about IPAA's support for the " Transparency
and Production of (TAP) American Energy Act, " led by committee
Chairman Bruce Westerman, R-Ar. The TAP American Energy
Act will get energy development back on track through a regular
order process by reinstating quarterly onshore lease sales,
requiring a minimum of two offshore lease sales a year and preventing
the executive branch from imposing any ban on federal
leasing without congressional approval. This legislation is a
positive step to ensure certainty in the regulatory process, which
is necessary to allow companies to make capital-intensive
business decisions for the future.
Visit IPAA's YouTube page for clips from the aforementioned
hearings. IPAA is grateful for the opportunity to advocate on
behalf of our members. Please do not hesitate to contact me or
our management team for questions about federal issues
impacting independent producers.
❒
JEFF ESHELMAN is president
and chief executive officer of the Independent
Petroleum Association
of America and the founder/executive
vice president of Energy in
Depth. Along with more than two
decades at IPAA, he previously
worked at the Defense Logistics
Agency, the White House Office of
National Drug Control Policy and
three public affairs firms.
MARCH 2023 29
American Oil and Gas Reporter - March 2023

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