IPAA Update | Russell T. Rudy Energy LLC
Mark K. Miller, Chairman of the Independent Petroleum Association of America (IPAA), was the guest speaker at the April meeting of the Houston Association of Professional Landmen. Founded in 1929, the IPAA has been the leading advocate for independent oil and gas producers in the U. S. The organization is basically a lobbying group and Miller, a lobbyist. As such he offered interesting insights as to the state of the industry from an independent’s perspective, how to weather the current situation, and some of the players in Washington.
Understandably, Miller supports an oil import tax as a way to stabilize prices. Many of us in the industry oppose this on both philosophical and economic grounds. However, I can see why someone who is an advocate for exclusively domestic producers might favor this proposal.
Miller pointed out that while there is broadly based pessimism within the oil and gas industry, we have been here before. He cited the Arab Oil Embargo, the Iranian Revolution, the Crash of ’86, Iraq’s Invasion of Kuwait, and the U. S. Invasion of Iraq as examples of prior crises with which we have successfully coped.
To avoid a repeat of our current situation in the oil industry, Miller says that future projects need to be vetted more carefully. These evaluations should include careful consideration of logistics, pipeline access, actual realized wellhead prices, and the political landscape.
Miller thinks that the industry to should be more aggressive in pursuing its agenda now that we have favorable majorities in the House and Senate. While this sounds good, it ignores the reality of a president who is skeptical, if not antagonistic, toward the oil and gas industry.
For me, the most interesting part of Miller’s presentation was his take on some of the key members of Congress. For example, he thinks very highly of Senator Joni Ernst (R-IA). I was somewhat surprised that she is perceived as a friend of the oil and gas industry when she comes from a state with such a vested interest in methanol.
Miller has high praise for Speaker of the House, Paul Ryan (R-WI). I never realized that Ryan’s wife is an oil and gas attorney and his father-in-law is a landman.
Congresswoman Martha McSally (R-AZ) is a Harvard graduate and 26 year veteran of the U. S. Air Force where she was the first woman to fly an A-10 Warthog. Miller sees her as a possible replacement for John McCain when he retires.
African-American Congressman Will Hurd (R-TX) was elected in 2015 to represent the 23’rd District in San Antonio. Prior to serving in Congress, Hurd was in the CIA. He currently sits on the House Homeland Security Committee and the Maritime Security Subcommittee.
Miller concluded citing a study by ExxonMobil which predicts that oil and gas will still be the dominant energy source in 2040.
Russell T. Rudy Energy, LLC buys oil, gas and mineral interests nationwide. Please call (800-880-0940), or write (info@rudyenergy.com ) to let us know if you agree, disagree or would just like to comment on this, or any of our posts.
