American Oil and Gas Reporter - October 2017 - 20

roles in Kentucky state government.
According to KOGA President
Maurice Royster, manager of
government affairs for EQT
Corporation, in Johnson City, Tn., Watts
was formally introduced to KOGA's
membership at the group's western
Kentucky meeting, Sept. 12 at the
Owensboro, Ky., Convention Center.
"Since his skills include social media
and communications, he gave a
presentation during the Board of
Directors retreat, illustrating how
KOGA could take its outreach and
messaging to the next level," Royster
recounts. "It was an opportunity to
introduce our board to some ideas about
improving external and internal
communications."
Looking ahead, Royster suggests that
industry advocates' priorities amount to
technical matters, public policy issues
and communication. "Those issues are

more important today than ever," he
reflects. "Our industry is dealing with
anti-pipeline and anti-fracturing groups,
and is bombarded constantly with
negatives and falsehoods. Getting the
facts out quicker is even more important
today than in the past. Ryan brings
those skills to the table." ❒

IOGA NY's Convention
Has Regulatory Focus
HAMBURG, N.Y.-The Independent
Oil & Gas Association of New York's
37th annual convention features both a
new agenda and location, Executive
Director Brad Gill says.
The meeting, set for Nov. 2 at the
Holiday Valley Resort and Conference
Center in Ellicottville, N.Y., will be a
luncheon, followed by an afternoon of
speakers, and closes with an informal

cocktail reception, Gill describes. "We
are hearing from a lot of our members
that their companies are in survival
mode in this low-price environment,
and they cannot afford to be spending
too much time at meetings, so we are
sensitive to that" he reports.
The regulatory agenda includes
Kevin Speicher, chief of the Department
of Public Service's pipeline safety
section, who will discuss operator
audits, inspections, pipeline
maintenance, odorization and reporting,
Gill says. Scheduled presentations from
the Department of Environmental
Conservation are:
* "Division of Mineral Resources
2017: In Review," from Catherine
Dickert, division director;
* "Petroleum Bulk Storage
Regulations for Aboveground Tanks in
New York State," by Andrea Skalski,
environmental engineer, Division of

Oil, Gas Help Fuel Kentucky Economy
By Ryan Watts
FRANKFORT, KY.-Kentucky is not
short-stacked when it comes to its supply
of natural resources. Typically, Texas, Oklahoma or Pennsylvania come to mind when
discussing states with fossil fuel extraction.
Yet, nationwide, Kentucky falls within the
top 20 for oil and natural gas production.
More than half of Kentucky's counties
produce oil and/or natural gas-most of
which is located in the state's eastern
and western corners. Last year alone, oil
and natural gas operators extracted around
$400 million worth of products from
nearly 30,000 wells. In fact, these same
wells annually produce approximately 3
million barrels of oil and billions of
cubic feet of natural gas, which is integrated back into global supplies.
This tremendous rate of return underscores the sector's value and impact
on Kentucky's economy, especially when
it relates to employment, local governments and individual land owners.
Each year, the industry employs thousands of workers with an average salary
of $75,000 a year. Oil and gas operators
also pay tens of millions of dollars in
severance taxes as well as lease royalties
to numerous land owners; all of which
infuses much-needed funding into many
cash-strapped communities.
Critical investments such as these continue to support and stimulate local
economies while simultaneously protecting
Kentucky's vital natural resources and
20 THE AMERICAN OIL & GAS REPORTER

ecosystem.
The industry also has built wellrounded coalitions that include Kentucky's Energy and Environment Cabinet
and the Kentucky Chamber of Commerce,
as well as conservationist groups such
as the Kentucky Resources Council, to
help protect Kentucky's soil and groundwater. The coalition worked in tandem
with regulators and lawmakers to modernize the safe disposal of drilling byproducts into landfills specifically regulated
to handle the material.
As a result, modernization of the industry through innovative drilling practices, improved environmental protections
and a growing demand for supply will
help boost the sector's potential for
future economic growth.
Nonetheless, much of this success
depends on how the markets will react
to various outside factors, including stifling federal regulations that place undue
hardships on small, independent producers. Market volatility and geopolitical
pressures from certain special interest
groups also may influence how operators
react to future output trends.
Despite the unpredictability of some
external dynamics, producers remain
decidedly optimistic about Kentucky's
future growth and investment opportunities. The industry will continue to
embrace new technologies, diversify
its workforce and develop sound, flexible strategies when choosing new
drilling locations, all while safeguarding

the environment.
Lower fuel prices for consumers, job
creation for thousands and the infusion
of tax and royalty revenue into local
communities have left an indelible mark
on Kentucky's versatile economy.
As the sector forges ahead, one thing
is for certain: Kentucky's oil and natural
gas industry is robust, steady and will
continue to produce reliable energy for
years to come.
❒

RYAN
WATTS

Ryan Watts is the executive director of the Kentucky Oil & Gas Association. Previously, he served as
executive director of the Office of
Public Affairs for the Kentucky Transportation Cabinet, directing all communications and serving as chief
spokesman for the 4,400 employee
agency. He began his career as press
secretary for Lieutenant Governor
Steve Pence. Watts is a graduate of the
University of Kentucky with degrees
in political science and mathematics.

American Oil and Gas Reporter - October 2017

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