American Oil and Gas Reporter - September 2022 - 49

ConventionSec tion: Permian Basin Petroleum Association
Federal Matters Increasingly
Important In The Permian
By Del Torkelson
MIDLAND-Actions speak louder than
words, the Permian Basin Petroleum Association
maintains, and the message will
be loud and clear if the U.S. Environmental
Protection Agency decides to place a
problematic regulatory designation on
the country's top oil producing province:
The Biden administration wants to strangle
U.S. oil and natural gas production.
When EPA's unified agenda indicated
it may designate the Permian Basin as a
nonattainment area out of compliance
with National Ambient Air Quality Standards
under the Clean Air Act, the possibility
raised instant alarm among oil and
gas representatives, Permian Basin communities
and numerous policymakers, including
Texas Governor Greg Abbott
(AOGR, July 2022, pg. 14).
PBPA Executive Vice President
Stephen Robertson says such a move
blends perfectly with the rest of the administration's
energy policy. " It would
be a continuation of Biden's actions the
entire time he has been in office, which
contradicts what his administration has
claimed about trying to increase production, "
Robertson reflects. " The administration
has put out so many burdensome
regulatory proposals and actions to undercut
the U.S. oil and gas industry. This
looks like more of the same. "
With indications from Washington
suggesting the agency may classify the
Permian Basin as a nonattainment area
as soon as this autumn, the timing of the
PBPA 2022 Annual Convention, Sept.
28-29 at the Permian Basin Petroleum
Museum and the Petroleum Club of Midland,
appears to be particularly apt. Once
such designations take effect, the agency
says, relevant state and local governments
must develop implementation plans to
improve air quality.
EPA has no legal obligation to declare
the Permian Basin a nonattainment zone
and every reason not to given how much
the extra regulatory burdens would threaten
area projects' economics, says PBPA
President Ben Shepperd. " A designation
would be an absolutely gigantic, devas " The
Permian Basin continues to lead the
pack when it comes to growth, opportunity
and support of energy security in the United
States, if not the world. At PBPA's annual
meeting, we will explore the challenges, as well
as the opportunities, that our industry faces. "
-Scott Kidwell
PBPA Chairman
tating blow to Permian Basin oil and gas,
as well as other industries, " he warns.
" Of course, that may be the goal. To
some people, it's not about the science
behind environmental conditions, it's
about hurting our industry. "
Nevertheless, he vows, the association
will help lead the effort to educate decision-makers,
contribute to the discussion
and try to influence policy, even if the
path for doing so is not well established.
" We have no idea what the proposal
looks like or its justification, other than a
few sentences in EPA's notice, " Shepperd
says. " We must get more involved in that
process and help shape the thinking behind
it in conjunction with the Texas Commission
on Environmental Quality. We
are not fighting this one alone, but we
are still shooting in the dark. "
" There is so little information, even
after looking at EPA's historic responses
to states that have tried to push back
against nonattainment listings, " Robertson
concurs. " EPA has sent Governor Abbott
a one-page statement that said the federal
government can do what it wants. The
agency has provided no real information
as to what is likely, merely what can
occur. It is difficult to know how to respond,
but PBPA and a lot of other folks
are putting time and effort into it. "
Nationwide Prominence
The nonattainment possibility is only
one aspect of a bigger picture in which
policies originating in Washington occupy
PBPA's attention. When he started with
PBPA in 2006, Shepperd recalls, the association
spent most of its time on state
legislative and regulatory affairs in Texas
and New Mexico, but that is no longer
the case.
" Now more than ever, we focus on
federal issues that run the gamut from
endangered species to the Clean Air Act,
the Clean Water Act, tax policy and even
Securities and Exchange Commission
proposals, " he reflects. " An extraordinary
amount of anti-oil-and-gas proposals
come out of Washington, so it is incumbent
on us to work with our allies to educate a
broader set of folks about the truth regarding
our industry. "
The federal threats have become chronic
during Biden's presidency, Robertson
assesses. " Under the current administration,
particularly during the last several
months, our members increasingly have
asked us to engage more on federal issues.
Largely that comes from the fact that
Permian production has increased so
much in volume and market share. "
After all, he observes, about a decade
and a half ago Permian crude production
accounted for a little more than 15% of
national output. Now the proportion is
around 43%. " When so much of U.S.
production comes from this region, national
agendas, regulations and legislation
hit harder here than anywhere else, "
Robertson reasons. " That has forced federal
issues onto the front burner. "
In late summer 2022, federal energy
SEPTEMBER 2022 49

American Oil and Gas Reporter - September 2022

Table of Contents for the Digital Edition of American Oil and Gas Reporter - September 2022

Contents
American Oil and Gas Reporter - September 2022 - Intro
American Oil and Gas Reporter - September 2022 - Cover1
American Oil and Gas Reporter - September 2022 - Cover2
American Oil and Gas Reporter - September 2022 - 3
American Oil and Gas Reporter - September 2022 - 4
American Oil and Gas Reporter - September 2022 - Contents
American Oil and Gas Reporter - September 2022 - 6
American Oil and Gas Reporter - September 2022 - 7
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American Oil and Gas Reporter - September 2022 - Cover3
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