American Oil and Gas Reporter - December 2016 - 83

ConventionCoverage: Colorado Oil & Gas Association

Economist Stephen
Moore visits with an
association member
during the Colorado
Oil & Gas Association's annual meeting
in Denver. Moore lauded the development of
shale oil and gas for
revitalizing U.S. manufacturing.

drilling and operating wells that are
cleaner and safer. Such innovation has
allowed the industry to increase natural
gas production to a point where the United
States is on track to become a net exporter,
the governor said.
Hickenlooper restated his support for
the Jordan Cove liquefied natural gas export facility proposed for Coos Bay, Or.
He recalled his visit with the Japanese
government and several Japanese energy
companies earlier this year to gain their
support for Jordan Cove, which could
provide a reliable export market for gas
produced in western Colorado's Piceance
Basin.
"After our visit, the Japanese sent
letters to the (U.S.) Federal Energy Regulatory Commission supporting Jordan
Cove and stating how long-term contracts
for our natural gas were vital to their energy security," Hickenlooper stated.
Colorado's oil and gas industry continues to "show the world that environmentally responsible energy development
is the new normal," the governor went
on. "I believe we can promote the industry
and public health at the same time. They
are not mutually exclusive."
Citing examples of how the industry
has participated in making Colorado a
leader in balancing community interests
with energy development, Hickenlooper
said such issues as setbacks; response to
complaints about light, noise and odor;
groundwater testing; and chemical disclosure clearly demonstrated industry's
engagement. Such efforts "build trust and
bring dramatic rewards. That is very hard
to argue with, and it is why we did not
end with these issues on the ballot this
year," he concluded.

Price Stimulus
Echoing a point made by Hickenlooper,
economist Stephen Moore credited the
oil and natural gas industry with propelling
the U.S. economy out of the Great Recession by creating jobs, revenues for
government projects, and significantly:
low energy prices.
"The development of the Marcellus
Shale has transformed many towns in
Rust Belt Pennsylvania and Ohio into
manufacturing hubs that are bringing jobs
back from overseas. It is a real transformation," he lauded.
Moore's latest book, Fueling Freedom,
Exposing the Mad War on Energy, examines "the stark choice between unprecedented prosperity fueled by abundant energy or the self-inflicted poverty
of green energy," according to the publisher.
While low prices have ravaged the
industry, they also have stimulated the
economy in a way no government program could, Moore contended. "Economists have a rule of thumb that says
for every penny less at the pump, American consumers see a savings of $1 billion," he said. "The $1.50 a gallon reduction in the price of gasoline translates
into a $150 billion stimulus to the U.S.
economy."
Moore said the United States was experiencing a manufacturing renaissance
for one reason: "We have the lowest price
of energy. This gives us a tremendous
advantage over the Europeans, who gambled on renewables and now are paying
the price."
Remarking that he was avoiding political commentary since his speech was
less than a week before the election,

Moore still commented that under President Obama, the U.S. economy was but
slowly recovering from the recession.
Following the eight recessions since
World War II, economic recoveries have
experienced average growth in gross domestic product of 4 percent. "This time,
the economy has grown an anemic 2 percent, or about $3 trillion less than average,"
Moore said. "With a public policy aimed
at creating jobs and fewer regulations,
this recovery could have created 5 million-6 million jobs by now."
In August, Moore was tapped by President-elect Donald Trump to sit on his
economic advisory board to consult on
tax policies.
America is on "the verge of the biggest
boom in history," Moore concluded. "Digital technology is changing the way we
live in ways no one could have imagined.
That technology will drive the next expansion. Your industry already is taking
advantage of it to find ways to make
money at $50 oil. There is no better time
in history than now and no better place
to be than the United States."
Dividends Paid
Addressing COGA in his final appearance as chairman, Brad Holly, senior
vice president of Anadarko Petroleum,
said his term was notable for its challenges,
but ultimately gratifying and "like hitting
a home run."
Holly said that when he took the chair-

Incoming Chairman John Mummery addresses the membership during COGA's
annual meeting. Mummery, who serves
as area manager for BP in Durango, Co.,
vowed to continue the association's public engagement efforts.

DECEMBER 2016 83

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