American Oil and Gas Reporter - September 2015 - 142

ConventionCoverage: Texas Independent Producers & Royalty Owners

RRC Chairman Lays Out Energy Policy
SAN ANTONIO-Over the past few
years, the oil and gas industry has been
able to access energy resources once
thought unobtainable, praised David
Porter, chairman of the Texas Railroad
Commission. The keynote speaker at the
chairman's dinner that closed the Texas
Independent Producers & Royalty Owners
Association's summer conference, Porter
said it was his job as an RRC commissioner to ensure Texas produced the
energy to power state and national
economies, and to do so in the safest,
most responsible manner possible.
"The goal is to prevent overregulation
from getting in the way of job creation
and economic growth as we have seen in
so many other places, both in the United
States and internationally. Every Texan
benefits from this system," he said.
Although Texas is blessed with an
abundance of natural resources, Porter
asserted the success of the oil and gas industry had as much to do with the state's
regulatory framework as it did with its
geology. Texas' fair, balanced and consistent regulations distinguish it from
other states, he asserted. However, those
qualities are threatened by lawmakers in
Washington, specifically President Obama
and his "war on fossil fuels."
Porter said, "The notion of climate
change continues to be a justification for
overreaching federal regulations that re-

strict industry and intervene unnecessarily
into our economy."
Adhering to several common-sense
policies could make the United States
energy independent while creating thousands of good-paying jobs, Porter suggested. One positive step would be lifting
the crude oil export ban, he offered.
Lifting it would allow U.S. ingenuity
and industry to compete fairly with other
oil-producing nations, while fiscally hurting countries that sponsor terrorism, he
maintained.
"One of the real untold stories economically over the past five years is the
benefit that the increase in U.S. oil production has had on reducing the trade
deficit," he said. "It is time for federal
policymakers to let us use this energy
opportunity to our strategic advantage
when it comes to facing down oppressive
and authoritative regimes such as Russia
and Iran."
The United States also should increase
international and domestic natural gas
sales by expanding export opportunities,
he advised, which he said also would put
more Americans to work while advancing
the global adoption of the clean-burning
fuel. Washington should expedite the
federal process for approving liquefied
natural gas exports, Porter urged. He
cited figures from the U.S. Energy Information Administration that projected a

Stephen Castle (left), former chairman of the Texas Independent Producers & Royalty
Owners Association, visits with Cheryl and David Porter at the association's summer
conference. David Porter, chairman of the Texas Railroad Commission, spoke at the
chairman's dinner, which closed the conference.

142 THE AMERICAN OIL & GAS REPORTER

56 percent increase in U.S. natural gas
production from 2012 to 2040, while
consumption was projected to grow 23
percent.
"We have enough natural gas reserves
to profit from markets overseas and to
expand our markets here at home. We
need to do both," he said.
The third part of Porter's energy policy
recommendations requires cooperation
between the United States and its North
American neighbors. Canada can accept
delays in building the Keystone XL
Pipeline only for so long before it pursues
overseas markets for its oil, while Mexico
now welcomes businesses and private
investors in its oil and gas industry, he
pointed out.
"Texas leaders need to continue helping
the Mexican government create a regulatory framework that allows both of our
countries to maximize their energy production potential," Porter said. "We must
seize this opportunity to strengthen our
economic and political security. On a
local level, reforms in Mexico create
more business opportunities for Texans.
On a larger scale, these reforms give
North America access to a more secure
and abundant energy supply."
The growth in U.S. oil and gas production has come on state and private
lands, not federal acreage, Porter pointed
out. He said that was a clear indication
of why the country needed to keep regulation at the state level.
"One size does not fit all. As we go
forward, we need a strong Railroad Commission to continue the fight," he concluded. "Texas is stronger today because
of oil and gas shale development, and
we need to continue to push that message,
to continue to extend that development,
and continue to strengthen our state."
Tax Policies
Although state legislators balanced
the Texas budget and left $15 billion, including the Rainy Day Fund, unspent,
declines in oil and natural gas prices remain a concern going forward, assessed
Dale Craymer, president and chief
spokesman for the Texas Taxpayers and
Research Association. He said revenue
estimates were based on $65 a barrel oil,
and lower prices could require projections
to be revised.
In addition to commodity concerns,

American Oil and Gas Reporter - September 2015

Table of Contents for the Digital Edition of American Oil and Gas Reporter - September 2015