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U.S. Oil, Gas Producers Respond to Pelosi’s Latest Attempt to Make Hollow Proposals Look Like Good Energy Policy

H.R. 6515 – More Road Blocks to America’s National Security

The following is a statement from Barry Russell, president and CEO of the Independent Petroleum Association of America (IPAA).  IPAA represents the 5,000 U.S. businesses that develop 90 percent of America’s oil and natural gas wells both onshore and offshore.  The bill largely affects independent oil and natural gas producers, who hold the majority of federal leases, including 90 percent of the offshore federal leases in the Outer Continental Shelf.

“House Speaker Nancy Pelosi made another failed attempt today to appear as a leader on energy issues by sending another piece of bad legislation to the floor that will not produce more American energy.

“H.R. 6515, The Drill Responsibly in Leased Lands Act of 2008, reintroduces the ‘use it or lose it’ legislation that was unsuccessful before the July 4th break.  The provisions would force companies to develop federal lease acreage before acquiring new leases.  However, it fails to recognize that there are many reasons for not developing every lease. These reasons may include:

• There may not be oil or natural gas reservoirs under the parcel;
• It could be undergoing seismic and geological tests and data gathering;
• It could be under environmental and federal permitting review;
• It could be wrapped up in litigation and protests by anti-development groups (up 700 percent from 2001-2007). 

“This legislation is akin to telling a farmer to plant crops on infertile ground and placing all the fertile ground off-limits.  It simply doesn’t make sense from a business or policy standpoint.  As the majority of Americans have stated:  it’s time to open up the 85 percent of federal lands that are banned from new energy exploration, not restrict our nation’s ability to produce more American fuel.

“Oil and natural gas producers use the most advanced technologies to protect the environment during exploration and production activities. To not recognize the environmental advancements of today’s American producers is irresponsible. 

“The bill also has provisions that call for increased lease sales in the National Petroleum Reserve-Alaska (NPRA), where lease sales have already been occurring since 1999, and an ‘expedited’ completion of Alaska pipelines that will provide no relief from high energy prices or increase our supply of crude oil and natural gas. These provisions are merely an attempt to draw attention away from areas of new production and other possible solutions that can and will help our energy needs. 

“Speaker Pelosi and her inner circle continuously make feeble attempts to fleece the American public into thinking they are working to further American production of oil and natural gas, when they are not. Rather, what Speaker Pelosi should be focused on are solutions that will provide relief, such as streamlining the permit process for producers in the Intermountain West, opening up promising offshore areas and removing unnecessary regulatory measures.

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IPAA is the national trade association representing oil and natural gas producers that drill 90 percent of the nation's oil and natural gas wells. These companies account for 68 percent of America's oil production and 82 percent of its natural gas production.