American Oil and Gas Reporter - March 2021 - 29

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PIOGA Working Toward Better Days
WEXFORD, PA.-Neither the previous
year's tumult nor uncertainty about what
lies ahead have sent members of the Pennsylvania Independent Oil & Gas Association
into collective despair. After all, notes PIOGA President Daniel J. Weaver, there is
literally no place on Earth in which the oil
and gas industry has a longer history and
collective memory than Pennsylvania.
" That is why no one is hitting the
panic button, " he reflects. " We have seen
days like this. The people who have been
around simply recognize the situation is
what it is and keep working. "
The industry is in a tough situation, he
admits. In early February, he notes, the
state's rig count was a little less than 20,
whereas only 12 months before it exceeded
30. But although the capital requirements
for unconventional projects have prompted
many of the area's shale players to dial
back, other companies seem to carry on
with nary a hitch, Weaver relates.
" Our conventional operators weather
the storm a little better, in part because
they are used to it, but also because they do
not have as much overhead and their projects
are so much less expensive, " Weaver says.
" They are in a maintain-and-produce mode
where they focus on keeping wells up and
running rather than drilling new ones. "
Moreover, he adds, even when companies choose to exit the commonwealth,
they create opportunity for others. " Some
companies are going away, but others
are buying up wells left and right, " Weaver
reports. " They recognize the opportunity
to buy in at a fairly affordable price and
are planning for the future. "
Infrastructure Issues
Mid-February's unusually frigid temperatures wrought havoc on a huge swath
of middle America and vividly illustrated
the importance of natural gas and the infrastructure needed to deliver and use it, observes PIOGA Chairman Gary Slagel, government affairs specialist at Steptoe & Johnson in Southpointe, Pa. Even so, he cautions
that President Biden seems unlikely to learn
the right lessons from the incidents, especially
with his administration already boosting
the concept of environmental justice.
" Groups that exist solely to stymie
fossil fuel development-of which there
are many-are finding that to be easy, "
Slagel remarks. " It makes me scratch my
head to see people in New England
fighting pipelines. Since it appears to be
impossible to build new ones, East Coast
cities such as New York and Boston have
to import liquefied natural gas from

Europe or Russia and pay two or three
times what they would otherwise. "
The rationale behind blocking pipelines
wilts under scrutiny, Weaver adds. " I cannot get people to understand that they
are stopping pipelines in the name of
protecting the environment, despite the
fact that pipelines remain the safest, cleanest and most economic way to move
those commodities to market, " he details.
" Thanks to infrastructural bottlenecks,
we have members selling their gas at
prices a dollar or more below hub prices. "
But anti-industry activists who presume
limiting pipeline development will force
oil and gas producers to leave their product
in the ground are mistaken, Weaver continues. He cites virtual pipeline projects
that convert natural gas to liquified or
compressed natural gas as an example of
the industry's ingenuity when it comes
to maneuvering around obstacles.
" We have members who deal with
virtual pipelines because they are taking
CNG tanker trucks into New York City
and plugging them into airports and everywhere that needs the gas, " he describes.
" We need both regular and virtual pipelines. "
Charging Ahead
PIOGA has launched a series named
" Just the Facts " that that Weaver says
uses various media, such as fact sheets
and videos, to tackle a different issue
every month. February's package addressed
climate change, while March's deals with
the particulars of various energy sources.
" I am very proud of it, " Weaver affirms.
" It is important to help people understand
why we need all forms of energy and
convey why it is a bad idea to have government pick the winners and losers
among various sources. "
After a tough 2020, Slagel says, the
association's tight budget forced it to
make staff adjustments at year's end, but
he maintains that the core team continues
to yield impressive results. This is true
even though staff members have done
the vast majority of their pandemic era
work from home.
" The amazing team-starting with Dan,
through Daniel Boston, Debbie Oyler,
Matt Benson and Kevin Moody-has
stepped up and is probably producing at
least as much or more than it did under
larger staffs. They understand the constraints our association faces and are
striving to make sure PIOGA membership
continues to deliver great value. "
Of course, for decades, one valuable
function PIOGA often provided its mem-

bers was events that drew people from
throughout the industry. The association
managed to hold its 2020 fall conference
in person by hosting it outside under a
tent, but Slagel notes that was an oasis in
a world where most people rarely spend
time with their coworkers, let alone professionals from other companies.
" It is hard to promote the networking
aspect of membership without any faceto-face physicality, " Slagel acknowledges.
" In the past, we helped nonmembers see
what PIOGA was all about by inviting
them to our events with guest passes.
While we can do that with our virtual
events, losing out on the face-to-face
component affects interaction and the
ability to build relationships.
" I am still pining for our next inperson Board of Directors meeting because
I miss sitting in a room with the staff and
25-30 board members, " he adds. " It makes
a difference when we can discuss things
in person, read each other's body language
and interact normally. "
Therefore, Slagel reports, PIOGA has
scheduled a convention for May 19 to
take place at Pittsburgh's Rivers Casino.
" With vaccinations trending upward and
Pennsylvania's COVID infections declining,
we hope we can return to that venue,
which always has been great, " he says.
" We have reserved a bigger room that
will allow attendees to practice safe distancing, even if the restrictions are lifted. "
According to Weaver, PIOGA's leadership decided the time had come to take
a reasonable chance. " We will plan the
event, looking to follow whatever guidelines and restrictions are in place, " he
describes. " People will wear masks and
we will distance. Some are ready to get
out and do things. Others are less comfortable. We respect everybody's individual
judgement on that. "
Of course, Weaver acknowledges that
much will depend on the extent to which
state and local standards can accommodate
a conference. If it proves necessary to
postpone the event, he says PIOGA will
have a contingency plan.
" If we have to, we will reschedule it
for later in hopes that more people are
vaccinated and the restrictions are looser, "
he says. " We have to plan these events
because PIOGA cannot take another year
of losing six figures on events. It is not
sustainable, nor is it fair to our members.
If we can figure out how to host in-person
events responsibly-which we will do by
abiding by the appropriate rules and guidelines-we are going to do it. "
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MARCH 2021 29

American Oil and Gas Reporter - March 2021

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