Interstate Oil and Gas Compact Commission

WHEREAS, oil and gas research is a key ingredient in any comprehensive and effective national energy policy; and, 

WHEREAS, the major U.S. oil and gas companies no longer make their comprehensive oil and gas research generally available and independent oil and gas companies operating in the United States generally lack the capability and capacity to conduct their own oil and gas research, thereby impacting the nation's ability to effectively and efficiently develop its domestic oil and gas resources; and, 

WHEREAS, the new National Petroleum Council (NPC) report "Facing the Hard Truths about Energy" recommends expanded research and development opportunities as essential to the existence of domestic production; and, 

WHEREAS, the U.S. Department of Energy, through the Office of Fossil Energy, Oil and Gas Supply Research and Development Program, through its various initiatives and facilities, such as the National Energy Technology Laboratory (NETL) and the Rocky Mountain Oilfield Testing Center (RMOTC), has conducted and supported significant public domain oil and gas research and development activities that have assisted in the development of public policy options to ensure clean, reliable, and affordable supplies of oil and natural gas for the American consumers; and, 

WHEREAS, the technology developed as a result of these research and development activities has been effectively transferred to the domestic U.S. oil and gas industry through various means, including the Department of Energy-supported Petroleum Technology Transfer Council (PTTC), to assist in the discovery, development, and effective and efficient recovery of our domestic oil and gas resources for the benefit of the nation; and, 

WHEREAS, the oil and gas producing states that are members of the Interstate Oil and Gas Compact Commission support the continuation and, in fact, enhancement of these critical programs; and, 

WHEREAS, the member states of the Interstate Oil and Gas Compact Commission have significant capability and capacity to support and/or conduct oil and gas research and development activities within state oil and gas regulatory agencies, state geological surveys, research universities, and other state-based entities, many of which have participated, or are participating, in Department of Energy-supported oil and gas research and development programs that provide significant benefit to the nation; and, 

WHEREAS, the U.S. Department of Energy oil and gas research and development program has been subject to significant reductions in funding and has been targeted several times for possible elimination in the Federal budget, leading to a reduction of the nation's ability to conduct important public-domain oil and gas research and development directed at ensuring that American consumers have clean, reliable, and affordable supplies of oil and natural gas; 

NOW,THEREFORE, BE IT RESOLVED, that the Interstate Oil and Gas Compact Commission (IOGCC) urges the Administration and the Congress of the United States of America to recognize the critical importance of oil and gas research and development activities to the nation; to ensure that future Federal budgets adequately fund the U.S. Department of Energy's Office of Fossil Energy oil and gas research and development programs; and to encourage the development of cooperative and collaborative federal-state initiatives and partnerships that support and utilize the capability and capacity that exists within the oil and gas producing states of the nation to support and conduct oil and gas research activities.

WHEREAS, the oil and natural gas industry is a vital part of the United States society and economy; and 

WHEREAS, IOGCC supports conservation and use of alternative fuels, but recognizes that for the foreseeable future increased domestic oil production is needed to fuel the nation's transportation system; and 

WHEREAS, increasing domestic energy production and reducing dependence on foreign supplies are in the best interest of our nation's strategic and economic well being; and 

WHEREAS, the U.S. currently imports over 65% of the nation's needed oil. These oil imports cost more than $340 billion a year (this figure does not include the military costs of protecting that imported supply); and 

WHEREAS, high energy prices are a major concern for the consuming public; and 

WHEREAS, the Coastal Plain of ANWR (Federal 1002 Area) is one of America's best possibilities for the discovery of several new oil and gas accumulations. U.S. Department of Interior estimates that the Area contains between 4.25 and 11.8 billion barrels of technically recoverable oil, of which more than 90% could be economically produced at market prices above $55 per barrel; and 

WHEREAS, advanced technology has greatly reduced the "footprint" needed for/of Arctic oil development. If Prudhoe Bay were developed today, the footprint would be 1,526 acres, 64% smaller (less than the size of an average airport); and 

WHEREAS, only the 1.5 million acre Coastal Plain, 8% of ANWR is being considered for development. The remaining 17.5 million acres or 92% of ANWR will remain permanently closed to any kind of development as federally designated wilderness. If oil is discovered, less than 2000 acres of the over 1.5 million acres of the Coastal Plain will be affected by surface development activities; and 

WHEREAS, revenues to the state and federal treasury will be enhanced by billions of dollars from bonus bids, lease rentals, royalties and taxes attributed to development within the Coastal Plain of ANWR. Estimates in 2005 for bonus bids alone were $2.4 billion; and 

WHEREAS, hundreds of thousands of good paying jobs will be created by development within the Coastal Plain of ANWR; and 

WHEREAS, to date, North Slope oil field development expenditures for production activity has contributed over $50 billion to the nation's economy, directly impacting each state in the union; and 

WHEREAS, the North Slope oil fields currently provide the U.S. with approximately 15% of its domestic production. Since 1988 this production has been on the decline. Peak production was reached nearly 2 million barrels a day, but has declined to a current level of around 725,000 barrels a day; and 

WHEREAS, the Trans-Alaska Oil Pipeline currently operates each day at much less than half of its design capacity; and 

WHEREAS, government studies suggest that new production from the Coastal Plain of ANWR could produce a 10-year sustained rate of 1 million barrels per day, supplying nearly 20% of the nation's domestic output, with production likely to continue for more than 25 years; and 

WHEREAS, incremental production from the Coastal Plain of ANWR should help reduce price volatility in the U.S. market and reduce the nation's outflow of funds for the purchase of oil; and 

WHEREAS, oil and gas development and wildlife are successfully coexisting in Alaska's Arctic. For example, the Central Arctic Caribou Herd at Prudhoe Bay has grown from 3,000 to as high as 32,000 during the last 30 years of operations; and 

WHEREAS, more than 75% of Alaskans, including a majority of the residents of Kakovik, the only Inupiat village on ANWR, favor exploration and production in ANWR. The Inupiat Eskimos who live in and near ANWR support onshore oil development on the Coastal Plain of ANWR. 

NOW, THEREFORE, BE IT RESOLVED, that the Interstate Oil and Gas Compact Commission urges the President and Congress, in the national interest, to open the Coastal Plain of ANWR to hydrocarbon exploration and development.

WHEREAS, The Interstate Oil and Gas Compact Commission continues to identify petroleum manpower and research needs; and 

WHEREAS, the organization has developed recommendations for state, federal and industry actions published in the reports Petroleum Pros and North Dakota's Employment Growth: Oil Industry Focus; and 

WHEREAS, a stable and adequate well-trained domestic petroleum workforce of professional and blue collar workers is critical to continued environmentally sound development of natural gas and oil resources in the United States; and 

WHEREAS, IOGCC will continue to address manpower needs, including encouragement and support of efforts by the federal government and institutions of higher education; and 

WHEREAS, research projects at the university level can result in valuable support and training of petroleum professionals as well as major advances in technology for exploration and production of natural gas and crude oil; 

NOW, THEREFORE, BE IT RESOLVED, that the IOGCC, in accordance with the findings of the Petroleum Professionals Blue Ribbon Task Force, expresses its support of actions to increase the number of students in petroleum specific degree programs; and

BE IT FURTHER RESOLVED, that the IOGCC and its member states urges Congress to take action that will encourage institutions of higher learning to increase both the number of programs for students and of scholarships available for petroleum-specific degrees.

WHEREAS, Over the past 20 years, long-term commodity gas and gas transportation and storage transactions have declined; and 

WHEREAS, The United States must expand its natural gas infrastructure, to accommodate gas supplies from new sources, to meet growing demand and to provide storage accommodating higher peak demands; and 

WHEREAS, Without long-term shipping and storage commitments, financing of critical pipeline and storage infrastructure will be both difficult and expensive, resulting in a detrimental effect on future natural gas market conditions; and 

WHEREAS, Long-term contracting facilitates preferred, long-term financing for large projects and leads to more reasonable transportation prices ultimately borne by consumers; and 

WHEREAS, A gas supply portfolio may prudently encompass long-term contracts for pipeline and storage capacity supporting new gas production sources and LNG terminals; and 

WHEREAS, Recent market conditions indicate long-term transactions may help assure that sufficient, reliable, affordable pipeline and storage capacity will be available to accommodate new gas supply sources from Alaska, offshore LNG sources and other areas; and 

WHEREAS, A joint Interstate Oil and Gas Compact Commission/National Association of Regulatory Utility Commissioners task force recently undertook research on this subject and has recommended a portfolio approach that includes both short and long-term gas supply and transportation transactions; and 

WHEREAS, The National Association of Regulatory Utility Commissioners has adopted a similar policy statement and resolution; 

NOW, THEREFORE, BE IT RESOLVED, That the Interstate Oil and Gas Compact Commission urges state regulators to:

WHEREAS, the Interstate Oil and Gas Compact Commission (IOGCC) expressed its concern about diminishing domestic oil and gas reserves in Resolution 06.052: "Oil and gas Policy: Evaluation for Energy Security"; and 

WHEREAS, the IOGCC and the North American Coastal Alliance (NACA), issued a report (Jan'06) entitled "Untapped Potential," urging government policy makers to become informed about the nation's potential hydrocarbon resources that are currently unavailable for leasing and development due to government-imposed moratoria; and 

WHEREAS, the IOGCC engaged with the Western Governors Association in preparing for the governors energy security policy recommendations for conservation and development of the nation's oil and gas resources in an environmentally responsible manner; and 

WHEREAS, on July 17, 2007, the National Association of Regulatory Utility Commissioners (NARUC) passed a resolution (copy attached) which is aligned with and supportive of IOGCC policies, entitled: "Developing Reliable Research Regarding the Social and Economic Costs of Maintaining Domestic Energy Exploration and Production Moratoria On and Beneath Federal Lands;" and 

WHEREAS, NARUC'S research initiative also complements IOGCC's effort to assure that national energy policy seeks to, "...avoid choices that will exacerbate our nation's energy situation...;" 

NOW, THEREFORE, BE IT RESOLVED, that the IOGCC commends and expresses support for NARUC commissioners in their initiative in convening a project to develop research on social and economic costs related to energy moratoria.

WHEREAS, North America is dependent on reliable, reasonably priced energy supplies to support a healthy economy and ensure national security; and, 

WHEREAS, demand for inexpensive natural gas is growing faster than demand for any other major energy source; and,  

WHEREAS, U.S. natural gas consumption is currently more than 22 trillion cubic feet per year and may grow to exceed 29 trillion cubic feet per year by 2030; and,  

WHEREAS, in response to relatively moderate natural gas prices, natural gas use in the electric generation sector may almost double by 2030; and, 

WHEREAS, the largest discovered but undeveloped reserve of natural gas in North America is the 35 trillion cubic feet on Alaska's North Slope; and, 

WHEREAS, the resource development infrastructure currently in place on Alaska's North Slope has been responsibly established over more than thirty years thereby minimizing the incremental footprint required to commercialize known natural gas reserves; and, 

WHEREAS, the likely reserves on the North Slope exceed 100 trillion cubic feet; and,  

WHEREAS, Alaska is one of the most likely sources of future inexpensive and secure domestic supplies of natural gas; and, 

WHEREAS, the North Slope basin provides the best opportunity for a vibrant domestic oil and gas industry; and 

WHEREAS, the State of Alaska has taken the initiative through the Alaska Gasline Inducement Act (AGIA) to promote an Alaska gasline project that will assure access to all current oil and gas developers and future oil and gas explorers, at reasonable transportation costs, and has committed $500 million to assure a successful project; and 

NOW, THEREFORE, BE IT RESOLVED, the Interstate Oil and Gas Compact Commission (IOGCC) encourages the development of the Alaska Gasline to provide a clean, reliable energy source to North American markets.