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For Immediate Release
March 5, 2010

America's Independent Oil, Natural Gas Producers Take Message of
Commonsense Tax Policy, Regulations, Job Creation to Capitol Hill

WASHINGTON - Earlier this week, America's independent oil and natural gas producers - who on average employ 12 workers and are responsible for drilling 9 out of 10 wells nationwide - descended upon the nation's capital to engage legislators and key policymakers on a host of pressing issues. While many issues were discussed and addressed throughout the industry's fly-in, the focus was largely on taxes, federal regulation of hydraulic fracturing, access to domestic energy reserves onshore and off, derivatives and hedging proposals, and the role America's oil and gas industry continues to play in fostering job creation.

Oil & Gas Journal's Nick Snow writes this about the fly-in:

• It has become a rite of Washington's spring. As the snow and ice begin to melt (with the piles particularly high this year following two major snowstorms within a week in mid-February), independent producers descend on the nation's capital to explain why administration tax proposals would be so devastating.
  
  "To have someone in the administration who knows absolutely nothing about oil and gas demonize energy companies and insist on all but confiscating the fruits of labor and hard-earned capital is simply unjust and not very smart. The president needs to encourage us," he maintained.
  
  And that's why independents, once again, are on their way to Washington.

Bruce Vincent, chairman of the Independent Petroleum Association of America (IPAA) and president of the Houston-based Swift Energy - underscored the importance surrounding these issues in appearances on the Fox Business Network, as well as the nationally-syndicated Lars Larson Show. Other news outlets also took note of the message that was being sent to Congress and the White House this week on behalf of America's independent producers, who are responsible for 82 percent of the natural gas and 68 percent of the oil produced in the United States.

• Independents converge on Washington as natural gas advocates: The Obama administration is sending mixed signals, according to Vincent. "The president has expressed support for developing more natural gas and making tough decisions about oil and gas on the Outer Continental Shelf. But when I look at how the [US Department of the Interior] is implementing administration policies, I'm not convinced they're serious about developing more domestic energy resources," he said.
  
  IPAA members were meeting with members of Congress not only from their own states, but others who had been identified (sometimes by producing states' members and staffs) as potential supporters of more aggressive gas development. "This could put pressure on [DOI]," Vincent said. (Oil & Gas Journal, 3/2/10)
  
   
• More Investment In Oil And Natural Gas Will Fuel Job Growth, Says Industry Advocate: Our industry cannot only develop America's resources and provide a better and secure energy strategy for the country, but also can provide jobs that are high paying and help improve the current economic condition across the country," said IPAA Chairman Bruce Vincent.
  
  Based in Washington, D.C., the IPAA is a trade organization that represents independent oil and natural gas producers and service companies across the United States.
  
  Vincent also noted that the petroleum and natural gas industry supports 9 million jobs in the U.S., and with better access and more investment in domestic reserves, even more jobs could be created.
  
  "We, in fact, have more natural gas in the United states then Saudi Arabia has, and we believe the industry has the ability to develop that and to power America for many years to come," said Vincent. (Talk Radio News Service, 3/1/10)

Thankfully, though - despite significant threats - America's oil and gas producers continue to have strong allies in Washington who understand the tremendous role this industry continues to play in creating good-paying jobs and helping to deliver stable energy to fuel economic activity and growth.

Under the headline "U.S. Oil, Gas Taxes Face Opposition, Landrieu Says," Bloomberg reports this earlier in the week: 

• "The Obama administration should abandon plans to raise $45 billion by eliminating tax breaks for fossil-fuel producers such as Exxon Mobil Corp. and Chevron Corp., U.S. Senator Mary Landrieu said today.
  
  "There's going to be fierce opposition to taxing this industry, because it is counter to creating jobs and counter to energy independence," Landrieu, a Louisiana Democrat, said at a hearing of the Senate energy committee on President Barack Obama's fiscal 2011 budget proposal. Some Democrats will join Republicans to defeat "draconian taxes on the oil and gas industry," Landrieu said.

Sen. Landrieu realizes the high stakes: these billions of dollars in new taxes proposed by President Obama on homegrown oil and gas production could kill jobs and leave America even more dependent on unstable regions of the world to keep our economy moving. The Shreveport (LA) Times reports this under the headline "Tax incentives vital to oil and gas companies":

• A repeal of tax credits for intangible drilling costs, percentage depletion and marginal wells are just a few of the incentives under scrutiny in Washington, D.C.
  
  While all oil and gas companies would be affected by these changes, it is the smaller, independent companies that would be impacted the most, said Ray Lasseigne, owner of TMR Exploration in Bossier City. Smaller companies produce most of the oil and gas in the country.
  
  "All the independents in Louisiana rely on outside capital to drill our wells," Lasseigne said. "The risk is so high that the third parties would not invest without the tax incentives. They justify the risk."