American Oil and Gas Reporter - October 2016 - 99

ConventionSection: Colorado Oil & Gas Association
General Cynthia Coffman on President
Obama's Clean Power Plan, on which
the governor's draft plan is based. Coffman
joined attorneys general from 26 states
in a lawsuit staying implementation of
the CPP.
In recent remarks, Coffman noted that
despite the stay order issued by the U.S.
Supreme Court last year, the Obama administration continues to incentivize states
into taking steps toward reducing CO2
from power generation (see story page
105).
Swing Storage
In a discussion of crude oil markets
during the RMES, Jamie Webster, a fellow
at the Center for Global Energy Policy at
Columbia University's School of International and Public Affairs, said the price
downturn had shown that Saudi Arabia
was no longer the swing oil producer,
able to move markets with an increase or
decrease in production.
"We are seeing that oil storage is the
swing supplier now," Webster theorized.
"Storage in the United States is cheap
and available, and more companies are
looking for ways to capitalize on it."
The United States has added 90 million
barrels of storage capacity in the past
decade, he said, adding that more storage
capacity increases energy security for the
United States and for the world.
Webster also said he saw two key factors
driving the oil market this year. The first is
gasoline demand, which is growing faster
in the United States than elsewhere. "Americans are switching back to sport utility
vehicles and bigger cars; there is no question
we are driving more," he observed.
Continued lower prices for gasoline
will be accompanied by volatility at the
pump, he added. "While we are becoming
accustomed to lower prices, Americans
also are getting used to constant ups and
downs in the price of gasoline," he surmised.
Slowing growth in crude oil and product
demand in China is the second important
element of the global oil market that Webster said was having an impact. Although
still a significant part of the global market,
Webster said he perceived a slowing in
the growth of Chinese oil demand.
"We look at demand growth for cement
in China because cement is used for construction, and construction means diesel
for trucks," he detailed. "Demand for cement is slowing as China transforms its
economy. For many years, China's growth

was from infrastructure: building cities
and roads. Now it is turning to a service
economy, and that requires less infrastructure growth. It is a structural change
in China's economy."
Oil markets will continue the rallyand-fall cycle for the next several years,
but oil climbing back to $100 a barrel "is
not out of the question," Webster offered.
Webster concluded that oil would remain the dominant energy source for
many years. "Renewable energy is growing
at a very rapid rate," he acknowledged.
"However, if you look at the rapid growth
of nuclear energy half a century ago,
there are similarities. And we can see
how that worked out."
Outstanding Honors
This year's COGA Summit Award
winners and industry Outstanding Operators awards were presented during the
Aug. 24 lunch program.
COGA's Lifetime Achievement Award
was presented to Denver attorney Howard
Boigon, who served as COGA president
in 1996-97. Its Industry Advocate Award

was presented to Susan Alvillar, a community relations professional at Terra
Energy Partners, and its Emerging Leader
Award was presented to Matt Owens,
president of Extraction Oil & Gas, an
operator in the DJ Basin.
Outstanding Operator awards are presented annually at the summit by the
Colorado Oil & Gas Conservation Commission. This year, honors were given to
Anadarko Petroleum for stakeholder relations, to Four Corners Geoscience for
water quality protection, and jointly to
Bonanza Creek Energy and Trade Star
for environmental protection.
A new feature at this year's RMES
was breakout sessions held on the exposition floor. Sessions ranged from produced
water treatment to well-pad automation,
to state air regulations and underground
injection control.
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Coming In November
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OCTOBER 2016 99
American Oil and Gas Reporter - October 2016

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