American Oil and Gas Reporter - January 2016 - 130

ment on that issue in 2016.
It is estimated that by the year 2050,
there will be 10 billion people on earth.
Please remember that it will be your oil
and gas industry that supplies the energy
needs for those 10 billion. Things are
very dire at the end of 2015. However,
access to abundant, clean energy will
continue to improve the human condition
around the world for decades to come,
so hold your head high.
In conclusion, I really cannot remember
a more difficult and challenging time
facing the domestic oil and gas industry.
In these miserable times, giving up and
throwing in the towel is not the solution.
We must remain resolute, work together,
and share information and ideas on how
to survive in this environment. Please remember, there is a reason why we are
called "independent" oil and gas producers.
We are a resilient and independent lot of
people. We will get through this-we
always have. No one is saying it's going
to be painless or enjoyable.
I had the opportunity to go to a few
universities throughout Ohio and give a
"state of the industry" speech to their geology students and staff. More often than
not, the students were very polite and attentive, and much came to light during
the question-and-answer sessions. What
troubles me the most is that these young
people were struggling to see how they
were going to be able to monetize the
geology degrees they were earning.
I offered to arrange a tour of a Utica
production pad and a Clinton well, and allowed them to tour one of my underground
injection facilities. With each visit, the students became more and more engaged in
the discussions, and each visit lasted longer
as questions kept popping up.
As I reflected on that day with the
students, it dawned on me that in light of
all we are facing, what we have to do is
gain the interest of the next generation
and build the next defenders of the industry.
When an opportunity presents itself to
engage members of the next generation,
we have to show them, explain to them
and let them see the value in what we do.
It is what makes me, and someday will
make them, proud to work in the oil and
gas industry.
As I always say to the OOGA membership, keep your heads held high and
always remember that you are helping to
produce clean, abundant, domestic, affordable, life-giving energy to a nation
that is starving for more.
❒

Coming In February
OOGA Convention Section

OKLAHOMA INDEPENDENT
PETROLEUM ASSOCIATION
JEFFREY J. MCDOUGALL
PRESIDENT AND PRINCIPAL OWNER
JMA ENERGY CO. LLC
OKLAHOMA CITY

FROM THE CHAIRMAN
It is difficult to paint an optimistic
picture for today's independent oil and
natural gas producer.
Depressed commodity prices are taking
their toll, slowing exploration, drilling
and production across the country, and
forcing companies large and small to
make drastic business decisions. We are
under attack by environmental zealots
who want to end fossil fuel use and have
found an ally in our nation's highest
elected official. Members of the Organization of Petroleum Exporting Countries
want to drive us out of business to regain
the market share they have lost to the
American shale revolution.
But difficult times such as these are
when trade associations such as the Oklahoma Independent Petroleum Association
are most effective. As individual voices,
independent oil and natural gas companies
would be buried under an avalanche of
burdensome regulations and tax policy
designed to put us out of business. But
as a collective-as one industry united-
we can ensure our country's march toward
energy independence does not slow.
Federal Challenge
First and foremost, we must continue
our fight against a White House that
wants to tax and regulate us out of business. President Obama has not hidden
the fact that he would like to eliminate
fossil fuel use, and each year he has held
office, his administration has sought to
repeal longstanding tax provisions for
oil and natural gas producers. When that
effort failed thanks to a lack of congressional support, the administration shifted
its efforts to slow oil and natural gas production by using federal regulatory agencies.
The Environmental Protection Agency
has targeted hydraulic fracturing. New
emission standards have been set for oil
and natural gas production facilities. The
effort even incorporates the Endangered
Species Act, with proposed listings of
species native to areas with active oil

130 THE AMERICAN OIL & GAS REPORTER

and natural gas production.
We must continue to educate federal
lawmakers on the importance of the American oil and gas industry. We have found
help in congressional leaders who see
the economic benefit of a vibrant and
growing oil and gas industry. Through
the work of OIPA and other oil and gas
associations, we have eliminated the "R"
and "D" after the names of elected officials,
and are making friends for the industry
in traditional left-leaning states that are
seeing new and increased oil and gas exploration.
These same lawmakers helped us accomplish our second goal: Repealing the
longstanding ban on U.S. crude oil exports.
Allowing exports should mean a slight
boost for depressed oil prices that have
hamstrung our state's budget and sent
thousands of oil and gas professionals to
the unemployment line. By allowing
American crude to enter the worldwide
market, American producers can benefit
from the comparably stronger prices available to worldwide oil producers for the
better part of a decade.
It is important to note that increasing
the value of American crude will not hurt
consumers. Because gasoline and all other
refined goods already can be sold worldwide, the price we pay at the pump is
based on worldwide oil prices. If anything,
the price at the pump may drop even further after more oil arrives on the world
market.
Finally, we must end unfair state and
federal tax advantages and subsidies for
wind power generation. Oklahoma has
taken great steps to create an equitable
playing field for all energy sources in
hopes of halting the government's promotion of wind power, which has eroded
the demand for American natural gas.
The pro-wind politics that permeate
government policy have bled into everyday
life. Look no further than the Oklahoma
City Thunder, who tout themselves as
"100 percent" wind powered. This is an
American Oil and Gas Reporter - January 2016

Table of Contents for the Digital Edition of American Oil and Gas Reporter - January 2016
