American Oil and Gas Reporter - October 2015 - 103

ConventionSection: Oklahoma Independent Petroleum Association

OIPA Keeping Pressure On
For Better Public Policy
By Danny Boyd
Special Correspondent

OKLAHOMA CITY-Despite the many
challenges facing their industry, members
of the Oklahoma Independent Petroleum
Association will meet for their fall conference Oct. 18-20 optimistic about changes
on the federal level that could make business conditions more palatable.
In mid-September, some at OIPA were
expressing optimism that restrictions on
crude oil exports could be lifted after a
U.S. House Energy and Commerce subcommittee in early September passed HR
702, which seeks to repeal the ban. According to OIPA President Mike Terry, the
full House was expected to take up the
measure shortly thereafter.
"Lifting the export ban is very important to our members and makes all the
sense in the world, especially now," Terry
insists. "Politics is the problem, but some
Democrats and Republicans are working
together, and the industry has been able
to get strong support from Senate Democrats from oil and gas states. There is
still some push back from those who say
this will increase gasoline prices, but
study after study shows otherwise."
New technology and major oil and
natural gas discoveries, including many
by Oklahoma-based companies, have revolutionized the country's energy future,
making an export ban even less sensible
as West Texas Intermediate sells at a
discount to Brent, relates OIPA Chairman
Jeffrey McDougall.
"The oil and natural gas revolution
Oklahomans have witnessed firsthand
has put 1 billion new barrels of crude oil
into the market each year, resulting in an
abundant supply of affordable energy
and overwhelming American oil storage
and refining capacity, which has trapped
us against the oil export ban," assesses
McDougall, president of Oklahoma Citybased JMA Energy Co.
Closing a differential that has ranged
from $5 a barrel on average to as high as
$13 earlier in the year will have a major
impact on Oklahoma's economy, he reasons. "In 2014, Oklahoma produced ap-

proximately 127 million barrels of crude
oil," McDougall states. "If Oklahoma
producers were paid, on average, $5 less
a barrel, it removed $635 million from
the state's economy. It is important to
note the decreased value of Oklahoma
crude oil has not impacted consumer
costs. Because gasoline and all other refined goods can be sold worldwide, the
price we pay at the pump is based on
worldwide oil prices."
Lifting the ban will help U.S. producers
compete as the world anticipates more
crude supplies from Iran, Terry says. He
also projects freeing U.S. exports will
bolster national security, as U.S. light
sweet crude can supply allies otherwise
consigned to purchasing oil from countries
such as Russia and Venezuela.
LPC Court Issues
OIPA received some good news on
the federal front Sept. 1, Terry says, when
the U.S. District Court for the Western

District of Texas overturned the U.S. Fish
and Wildlife Department's "threatened"
listing for the lesser prairie chicken under
the Endangered Species Act. The ruling
sided with the Permian Basin Petroleum
Association and co-plaintiffs that included
counties in southeastern New Mexico (see
story pg. 20).
The USFWS must decide whether to
reconsider or appeal, Terry notes. Furthermore, a similar case was pending
in federal court in Tulsa, Terry pointed
out in mid-September. The court's determination in PBPA's case held that
USFWS ignored data that showed a
substantial population increase for the
bird from 2014 to 2015, says A.J. Ferate,
the association's vice president of regulatory affairs, which he suggests is a
reason for OIPA members to be optimistic.
"OIPA has supported an Oklahoma
Wildlife Conservation Division two-year
survey of the lesser prairie chicken and

OIPA Fall Conference - Ridgedale, Mo.
Sunday, Oct. 18

1 p.m. Exhibitor Setup, Grandview Ballroom
Foyer, Big Cedar Lodge
1 p.m. Registration Open, Grandview Registration Table
1:30-3:30 p.m. Board of Directors Meeting,
Lake View B & C
Board Members Only
4:30 p.m. Welcome Reception, Grandview
Ballroom Foyer
6-9 p.m. Campfire Dinner

Monday, Oct. 19

7:30 a.m. Registration Open, Big Cedar
Lodge, Grandview Registration Table
7:30 a.m. Buffet Breakfast, Grandview
Ballroom
7:30 a.m.-Noon Exhibition Open, Grandview
Ballroom Foyer
8:30-11:15 a.m. General Session, Grandview D
Tony Martin, Executive Director, Oklahoma Tax Commission
Mark Parker, Technology Manager, Halliburton

10 a.m.-Noon Bubbles & Brunch Cruise
Admission: $120
11:30 a.m. Keynote Luncheon, Grandview
A&B
Speaker: Ambassador Yoram Ettinger
OIPA Hall of Honor Induction
4-5:30 p.m. Exhibit Booths Open
6-9 p.m. A Night at Top of the Rock

Tuesday, Oct. 20

7:30 a.m. Registration Open, Big Cedar
Lodge, Grandview Registration Table
7:30-8:30 a.m. Buffet Breakfast, Grandview
Ballroom
7:30-11 a.m. Exhibition Open, Grandview
Ballroom Foyer
8:45-10:45 a.m. General Session, Grandview D
11:30 a.m. Exhibit Booth Teardown
All Exhibit Booths Must Be Down by
11 p.m.
11:30 a.m. OIPA Fall Classic Golf Scramble,
Buffalo Ridge Golf Club
Transportation Available
Lunch Provided
OCTOBER 2015 103
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