PERMIAN BASIN

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• PERMIAN BASIN
• PETROLEUM ASSOCIATION
• Midland, Texas
• May 8, 2001
• Barry Russell
• President
• Independent Petroleum Association of America

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Overview

• The Nature Of The Energy Problem
• The Issues
• Changes In Washington
• IPAAs Role

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Major Focus Energy Policy

• Domestic Production Of Oil And
• Natural Gas
• Meeting Growing Future Demand For Energy

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U.S.Natural Gas DemandComparison of 1992 and
1999 NPC Study Results
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U.S. Natural Gas Demand by Sector
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U.S. Production History
BCFD
1990
1991
1999
1998
1997
1996
1995
1994
1993
1992
Production Decline Rate of Base
23
16
17
15
17
18
21
23
18
19
Representing 91 of US Production
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Natural Gas Prices(NYMEX)
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Natural Gas Producers are Responding
Rigs Drilling for Natural Gas Have Doubled
1,125
Oil Rigs
488
Natural Gas Rigs
April, 1999
February, 2001
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Issue Building a Sound Energy Policy

• Recognize Importance Of Energy
• Establish Energy Advocacy
• Require Consideration Of Energy Impact In
  Regulatory Decision Making

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Critical Factors

• Access
• Technology
• Financial Requirements
• Skilled Workers
• Rigs
• Lead Times
• Requirements Of New Customers

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Issue Resource Base

• Knowing How Many Laws, Regulations And
  Conflicting Management Plans Are In Play

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Issues Access to Capital

• Increase Spending By 10 Billion A Year Through
  2015
• Double Wells Just To Deal With Natural Gas Demand
• Retain As Much Revenue As Possible
• Old And New Tax Reforms

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Whats Going On In Washington

• Bush-Cheney National Energy Policy Task Force
• Transition Advisory Teams
• The Administration And The Agencies
• The Congress

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Our Role In The Process

• Wildcatters PAC
• The Transition
• Congressional Hearings
• Congressional Oil Gas Forum

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Political Effectiveness

• Record-Breaking Fundraising
• Increased IPAA Member Involvement
• The Wildcatters Fund Contributed To 71 Open
  Congressional Seats And Competitive Races To
  Ensure A Pro-Business/ Pro-Oil Gas Congress

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Grassroots Activism

• Voter Education Guide
• Get Out The Vote Campaign

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Hearings Testimony

• The 107th Congress
• House Energy and Air Quality Subcommittee
• House Resources Committee
• House Energy and Mineral Resources Subcommittee
• Senate Energy and Natural Resources Committee
• Federal Energy Regulatory Commission

Rep. Barbara Cubin (R-Wyoming)
Rep. Joe Barton (R-Texas)
Rep. James Hansen (R-Utah)
Sen. Frank Murkowski (R-Alaska)
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Congressional Oil Gas Forum Advocacy

• The Oil and Gas Forum Hosted by IPAA on
  March 15, 2001 Drew 90 Participants and 7
  Members of Congress

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