American Oil and Gas Reporter - May 2023 - 35

a lawsuit against a move by the U.S. Environmental
Protection Agency and the
U.S. Army Corps of Engineers to redefine
" waters of the United States " (WOTUS)
for purposes of Clean Water Act jurisdiction.
Opponents warn that the Biden
administration proposal will extend federal
oversight well beyond the law's intent
and introduce a host of new permitting
headaches and regulatory obligations.
The Alliance also has joined litigation
filed by the Permian Basin Petroleum
Association in late March to overturn the
U.S. Fish & Wildlife Service's decision
to list the Lesser Prairie Chicken under
the federal Endangered Species Act. The
bird's range covers parts of Colorado,
Kansas, New Mexico, Oklahoma and
Texas and the USFWS under Biden has
classified the LPC as " threatened " in the
northern part of its range and " endangered "
in the southern part of its range (AOGR,
April 2023, pg. 18).
Simmons adds that the Alliance is
keeping tabs on how Oklahoma plans to
handle carbon capture and sequestration
projects. " With the federal government
putting so much money toward it, and
with its potential for enhanced oil recovery,
we are paying attention to that, " he says.
" The state and industry are prioritizing
work to help everyone understand it from
a regulatory standpoint and to make sure
we have a good framework around the
potential ability to do not only CCS, but
also EOR through those projects as well. "
Annual Convention
Oklahoma's drilling permits and rig
count have slowed in 2023, but activity
remains strong, Simmons reports. " The
Mid-Continent is fighting hard to attract
investment capital, " he attests. " Even if it
is probably not the top-tier destination for
that right now, the Alliance is working to
create the right kind of environment that
encourages folks to take a hard look at it. "
According to Hulsey, inflation continues
to squeeze producers' margins.
" The buzz is all about higher service
costs alongside commodity price pullbacks, "
he reports. " The Alliance wants
our service companies to succeed so
Oklahoma can enjoy a healthy service
segment, but developers who seek to harvest
the state's resources are talking a lot
about cost control challenges. "
Although some media reports suggest
inflation may be starting to recede, Hulsey
says producers do not yet detect any such
relief. " Continental, like every other operator,
is working with our suppliers and
paying attention to every dollar we spend,
because that is the nature of our business, "
he describes. " More and more, cost-consciousness
will be how the oil field operates.
Whether a company is big or small,
public or private, everyone is looking for
ways to reduce costs and get more oil
out of the ground. "
Meanwhile, he assesses, producers
seem to be finding their stride in meeting
supply chain challenges. " We seem to be
handling that better, " Hulsey suggests.
" Things still take a long time in our industry,
but I think we have improved at
timing and planning projects. The industry
seems to have gotten much better at handling
possible delays and prioritizing. "
According to Simmons, Alliance members'
collective mood in spring 2023
strikes him as both wary and hopeful.
" People are cautious, but we also detect
signals that may point to higher prices in
the future, " he clarifies. " Folks are thinking
and planning about how they can capture
opportunities. Everyone is mindful and
focusing on what comes next. Our members
are very forward-looking and always
thinking about how to capture opportunity
as soon as it presents itself. "
A major opportunity to discuss those
opportunities will come with the 2023 Petroleum
Alliance Annual Meeting at the
Las Colinas Resort in Las Colinas, Tx.
Program highlights that Simmons mentions
include remarks from Environmental
Progress founder and author Michael Shellenberger,
who also will sign copies of his
book, Apocalypse Never: Why Environmental
Alarmism Hurts Us All.
Also scheduled to speak is Electric
Power Supply Association President and
Chief Executive Officer Todd Schmitzler.
" He will discuss what is happening in
electric markets, as well as what it
means for natural gas, " Simmons says.
" It will be a chance to hear about the
challenges at the national, regional and
state levels. "
Hulsey stresses that the conference
provides an environment in which members
can foster and strengthen the bonds
that hold the industry together. " The Alliance
team does a great job of putting
events together and the annual meeting
is a highlight of the year, " Hulsey affirms.
" Oklahoma's industry has a long history
and relationships are fundamental to doing
business in this state.
" It is so valuable in so many ways to
spend time together, " he continues. " It is
a great event and a cornerstone of our association.
It offers the ability to not only
talk about the issues and advocate for
our industry, but also provides opportunities
for unique fellowship that is great
for our industry. "
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MAY 2023 35
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