Cont’d Next Page

On the next page we used an EIA chart of Ameri-

ca’s Net Petroleum Imports from 1949 to September

2019. Remember when DEPA

was spending every waking hour

working Congress to lift the crude

oil export ban back in 2015? We

had a chart we used showing

where the U.S. was at 60% im-

ports and how with horizontal

drilling and hydraulic fracturing,

we were changing that curve - low

and behold look what you guys

did! Also, at that time in 2015

when discussing lifting the ban

with members of Congress, the

number one question was always

“won’t lifting the ban and allow-

ing U.S. crude oil exports cause

prices to go up?” Our answer was “no, in fact our ex-

port of U.S. crude will stabilize world prices.” DEPA

leadership may in fact be prophets or simply under-

stand the global market much better than politicians.

he revolution in oil and gas production in the U.S.

has been nothing short of amazing. Independent

domestic producers utilizing scien-

tific and engineering breakthroughs

have established the U.S. as the

number one crude oil and natural

gas producing country on the plan-

et. Just a few years ago the domes-

tic oil and gas industry had been

counted over and done. A mature

extractive industry whose best days

were long gone. Well . . . wow take

a look at us now!

We thought everyone would like

to see in print just what our industry

has accomplished in a few short

years. The chart below showing

Net Imports of Crude oil and petro-

leum Products comes from the Energy Information Ad-

ministration (EIA). Due to space constraints we could

not reproduce every year since 1973, but in showing

1973, 1974, 2018 and 2019, it is truly remarkable how

you have sent the Net Imports into negative territory

for the first time since the 1940’s.

Dec 2019

DEPA REPORT ON INDUSTRY LEADERSHIP, LEGISLATION AND ENERGY REGULATION

DOMESTIC ENERGY PRODUCERS ALLIANCE

A Record Setting End to 2019 Net Imports of Crude & Petroleum Products at a 46 Year Low

The U.S. was a net petroleum product importer of 698,000 bpd in 2009, while so far this year, America has been a net petroleum product exporter of 3.2 million bpd according to EIA data.

U.S. Net Imports of Crude Oil and Petroleum Products

(Thousand Barrels per Day) According to EIA YEAR JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

1973 5,646 6,246 6,386 5,318 5,604 5,675 5,938 6,373 6,168 6,411 6,720 5,828

1974 5,164 5,013 5,078 5,736 6,247 6,122 6,283 6,114 5,881 5,954 6,612 6,436

2018 3,819 2,679 2,485 2,578 2,510 2,902 2,231 3,270 2,474 1,457 991 720

2019 1,589 176 842 1,017 1,583 506 1,466 849 -89

By Jerry Simmons, DEPA Executive Director

DEPA Staff Executive Board of Directors

Dan Boren Director

Ed Cross Director

John Schmitz Director

Bill Stevens Director

Harold Hamm Chairman

Mike McDonald President

Don Montgomery Vice President

Berry Mullennix Secretary/Treasurer

Jerry Simmons Executive Director

Peter Regan Congressional and Alliance Liaison

David Crane Lobbyist

Cynthia Simonds Marketing and Communications Dir.

Sarah Reece Executive Assistant

PO Box 33190 Tulsa, OK 74153 405-669-6646 Info@DEPAUSA.org

DEPA believes in seeking

common ground, through

common sense solutions,

to the challenges facing

our industry. Our biparti-

san approach provides a

uniquely powerful voice

for our members at the

state and national level.

Did You Know... Methane Emissions are Down

14% since 1990.

Natural Gas Production

has increased more then 50%.

I want to close 2019 with some

words of encouragement to all of

you. DEPA is really operating at

a heighten level now. 2019 has

been a very good transition year

and the DEPA staff is looking

forward to 2020. That said, we

MUST continue to grow the or-

ganization. The election cycle

next year will be full of those say-

ing all manner of negative things

about our industry. We are ready

to fight back with knowledge,

facts, science and simple reality.

To carry that fight forward though

we will more than ever need your

support – working with us as well

as your financial support.

Have a wonderful holiday

season and a Happy New Year.

Please do what you can to help

DEPA fight on and prosper in

2020.

DEPA Report on Industry, Legislation and Energy Regulation December 2019 3

Passing the Baton to Brouillette Could “All of the Above” Bring Bipartisan Harmony to the DOE?

"He's like a Marine; he runs toward the sound of a battle," - Former Louisiana Rep. Billy Tauzin. Tauzin served four full terms as a Democrat before becom-ing a Republican in 1995.

“For perhaps the first time, the United States is finally embracing a true, all of the above energy policy. One that does not pick winners and losers, but instead opens the door to innovation.” Dan Brouillette during the International Energy Agency Meeting July 11, 2019, Paris

As predicted the move from Deputy

Secretary to Secretary of the U.S. Depart-

ment of Energy (DOE) went smoothly this

month for Dan Brouillette. Three decades

of experience in both the public and pri-

vate sector has given him a deep

knowledge of key policy issues.

“The No. 2s sliding into the No. 1 slots

don’t often appear at rallies or on the Sun-

day news programs. But historians noted

that their deep experience as both lobby-

ists and lower-ranking agency officials

means they know how to operate the

levers of the

federal govern-

ment to change

policy.”

- NYTimes writer Lisa Friedman in her

Oct 18, 2019 piece about Brouillette after

Rick Perry’s announcement to step down

at the end of the year.

The 70-15 confirmation vote included

support from several Democrats in oil and

gas states like Joe Manchin from West

Virginia, Bob Casey from Pennsylvania,

California’s Dianne Feinstein and Martin

Heinrich of New Mexico. This was not a

huge surprise. Brouillette has been a great

champion for rapid expansion of oil and

gas drilling and bolstering American ex-

ports. He has also been a supporter of al-

ternative energy, even an eager participant

in the Solar Decathlon. Brouillette’s “all

of the above” mentality seems to have

made him a favorite with almost everyone.

It is easy to find positive quotes about

Brouillette. His track record is not only

impressively productive, but makes him as

likeable across the aisle as anyone.

Of the 70 “yays” during the confirma-

tion vote, Democrat support also came

from nuclear and wind states like Mary-

land’s Ben Cardin, Jeanne Shaheen from

New Hampshire as well as, senators

from Washington state, Delaware and

Michigan.

In 2018, nuclear power accounted for

34.1% of all energy produced in Mary-

land. The month, the DOE awarded

nearly $3.5 million to X-Energy to fur-

ther the development of its advanced

nuclear reactor. The project will exam-

ine ways to reduce construction and

maintenance costs of the developer’s Xe-

100 reactor design. X-Energy is located

in Rockville, Maryland.

Seabrook, the largest nuclear power

reactor in New Eng

land, provided 57% of

New Hampshire’s

2018 electricity

net generation. A

requirement to pro-

duce 10% of its electricity from

in-state

renewables by 2015 has led to the con-

struction of new solar, wind and landfill

gas plants in Michigan. There are three

active nuclear power plants in Michigan,

however the Palisades Plant located on

Lake Michigan is planned to close in

2022.

Could it be that Brouillette will help

alternative energy and fossil fuels meet

in the middle on what the future for US

energy looks like?

Perhaps pragmatist Brouillette, who

has had a good deal of success breaking

through policy log jams in the past, will

be exactly what the U.S. needs right now

to bring a cooperative spirit back to the

mix in Washington. 2020 will be a fa-

tiguing political year as the perfect storm

of impeachment proceedings, presiden-

tial election, and the need for “regular

productivity” collide. However it is pos-

sible the DOE might just be the sanctu-

ary US energy needs this year as we con-

tinue to push toward energy independ-

ence and the future of American energy

development.

“...Dan’s experience in the sector is unparalleled. A total professional, I have no doubt that Dan will do a great job!“ - President Trump tweeted October 18, 2019

4 Domestic Energy Producers Alliance

In a rush to judgment, some conservation groups

place blame for every conceivable environmental mala-

dy on the development of Montana’s natural resources,

because, well, fear sells. Fear sells newspapers and or-

ganizational memberships. Fear sells political agendas

and is used to pit different segments of society against

each other using noth-

ing more than mislead-

ing information or,

more often than not,

totally false statements.

A recent op-ed

penned by a board

member and former

president of the Mon-

tana Wildlife Federa-

tion laments that the

idea of leasing public

lands for possible oil

and gas development is

a threat to sportsmen

and even more so, pre-

cious wildlife. In this

particular instance, the

greater sage grouse.

I want to address the

sportsmen issue first.

The people that work in

natural resource extrac-

tion are also sportsmen

and women. We hunt

big game and birds and

try and get in our share

of fishing. We too ap-

preciate an environ-

ment that is suited for

these activities. We

hike and camp in Mon-

tana’s great outdoors

and enjoy the time

away from our busy work schedules. We hire hunting

and fishing guides, purchase hunting and fishing gear,

and support the activities of Montana Department of

Fish, Wildlife and Parks through purchases of the ap-

propriate licenses. So, stop the “us versus them” rheto-

ric because we live here too. We ALL value conserva-

tion and protecting the place we call home.

I agree Montana’s economic livelihood is tied to our

lands, waters, wildlife and natural resources. BLM

lands are public lands, they belong to everyone, not just

members of the Wildlife Federation or other individuals

or groups that oppose multiple use. The revenue from oil

and gas leasing and

potential production is

split with the State of

Montana. For calendar

year 2018, total pay-

ments to the BLM from

Montana oil and gas

activities, oil and gas

leases, bonus payments

and royalty payments,

was approximately

$23.6 million. About

half of that amount paid

to the Federal Govern-

ment comes back to the

State, with a quarter of

that payment sent back

to the county where the

public land is located.

In 2016, Montana re-

ceived over $246 mil-

lion in tax revenue and

other fees from natural

resources above what

was received from the

BLM. These numbers

are just tax and royalty

dollars paid to the gov-

ernment and do not even

come close to industry

wages, equipment pur-

chases, and private roy-

alty payments and their

associated tax payments. This is all money that funds

education, human services, and other essential pro-

grams.

Let’s talk about sage grouse for a moment. The sage

grouse is under State management, not Federal manage-

ment. Montana currently has a robust sage grouse man-

agement program. A directive from former Secretary of

Montana’s Petroleum Industry Supports Stewardship and the Outdoor Economy

By Alan Olsen, Montana Petroleum Association

“We believe public lands are open to multiple use, and are not just reserved for the benefit of select groups. We participate in and support outdoor recreation. We are a part of the success of the outdoor recreation industry.”

This article was chosen for reprint from the Montana Petroleum Report because it applies to all states where oil and gas production and outdoor sports co-exist.

“Pennsylvania leads the US with an average of over 20 hunters per square mile (PSM). For comparison other popular white tail destinations like Michigan, Iowa and Texas only have 6.7, 4.5 and 4.4 hunters PSM, re-spectively,” according to the Quality Deer Management Association. Colorado is considered by many hunters to have the best elk hunting. The Delta in California is known for it is bass, sturgeon and is a must-fish location for all types of anglers. Head to Louisiana’s Lake Pontchartrain Basin for speckled trout or Montana’s Smith River where schools of brown and rainbow trout that can get as large as 14-16 inches.

Mr. Olsen makes a great argument in this piece that is not often consid-ered. “The people that work in natural resource extraction are also sportsmen and women….We too appreciate an environment that is suited for these activities.”

DEPA Report on Industry, Legislation and Energy Regulation December 2019 5

the Interior, Ryan Zinke instructed the BLM to ad-

here to an individual state’s sage grouse program. It

is not an easy process to permit an exploratory well

in sage grouse habitat. Along with seasonal stipula-

tions, the fees for compensatory mitigation (money

paid into the sage grouse program) can be quite

steep, in some instances approaching $150,000.00

for a drilling location. That’s on top of the cost of

drilling, associated labor and environmental costs,

and permitting fees.

If you were to drive through existing areas with

oil and gas production, you would see sage grouse,

mule deer and antelope. In some areas you will see

elk, pheasants, and sharp-tail grouse. You’d also

see coyotes, fox, eagles, hawks, ravens, and badg-

ers that all prey on sage grouse. A 2018 scientific

paper, Smith et al. Livestock Grazing and Nesting

Sage-Grouse, published in the Journal of Wildlife

Management and Wildlife Monographs shows the

impact to the bird by those predators. Of 495 sage

grouse nests monitored for that study, 51.3% were

destroyed by predators, not oil and gas develop-

ment.

Montana’s oil and gas industry has worked hard

to ensure the success of the greater sage grouse. We

have a vested interest in the bird’s survival and have shown time

after time that our support of the stewardship program keeps the

program funded and staffed. We believe public lands are open to

multiple use, and are not just reserved for the benefit of select

groups. We participate in and support outdoor recreation. We are

a part of the success of the outdoor recreation industry. We too

have a large impact on personal wealth through employment and

payments to land and mineral owners. We are an integral part of

all of Montana’s economic sectors.

Alan and his wife Jean live in rural Musselshell County Montana. With more than 40 years of experience in the oil and gas industry working for Halliburton, the Oil and Gas Division of the Montana Department of Natural Resources, and Sanjel USA, Alan knows the positive impacts responsible resource development brings to Montana and the nation. Alan served twelve years in the Montana Legislature developing energy policy as Chair-man of the House Energy Committee as well as Chair-man of the Senate Energy Committee. Alan has worked

on cross border energy issues as a delegate to the Pacific Northwest Economic Region (PNWER) and as a member of PNWER’s Bi-National Energy Working Group. As Executive Director of the Montana Petroleum Association (MPA) Alan is working to spread the word about the positive social and economic impacts the oil and gas industry brings to Montana along with representing the petroleum industry at legislative committee hearings and agency rulemaking. While serving as Executive Director of MPA he also serves on the Board of Directors of the Independent Petroleum Association of America and the Do-mestic Energy Producers Alliance.

Stewardship and the Outdoor Economy Cont’d

The Trump administration is now seeking

to reopen federal lands in Texas for leasing,

which would allow oil and natural gas compa-

nies to drill more than 1,000 horizontal wells

and 500 vertical wells across the state over a

20-year period. In a 49-page report, the U.S.

Forest Service estimates that the 1,500 wells

would require more than 5 billion gallons of

water to unlock more than 68 million barrels

of oil and more than 4.2 trillion cubic feet of

natural gas. Under federal law, the federal

government would receive 12.5 percent of the

royalties from the oil and natural gas extracted

from the forests and grasslands. The State of

Texas, nearby counties and school districts

would also receive royalties from the produc-

tion.

Currently, Rockcliff Energy, Sabine Oil &

Gas, and Aethon Energy make up the top three

drillers in the Haynesville, East Texas plays.

Jerry Jones of the Dallas Cowboys and Com-

stock Resources is working hard to become a

major producer in the region, having bought

rival Covey Park Energy in a $2.2 billion deal.

Plastics have been around since ap-

proximately 1600 BC when the people

then living in Central America first pro-

cessed natural rubber into figurines,

balls, and rubber bands. The societal

benefits to public health, safety, even

conservation of energy and materials in

our own times gets lost in the shuffle during the current heated but generally helpful

debate over better management of the plastic waste showing up in the world’s

oceans. Nice to see a very welcome move in this arena from Rick Perry’s Depart-

ment of Energy on the eve of the Secretary’s departure and return to Texas. Perry’s

DOE announced in November it will fund new projects to encourage development

of plastics manufacturers in the U.S. to increase recovery, recycling, reuse, and re-

manufacturing of plastics and other materials.

Interesting that the U.S. is trying to position the nation as a world leader in ad-

vanced plastic recycling technologies, while the European nations are sticking to the

conventional tax-and-eliminate model. My prediction is that Rick Perry’s much

more thoughtful, economically viable approach will be what ultimately prevails and

coincidently stops the stream of toss-off plastics that have been pouring without rest

down the rivers of Asia and Africa and into the sea.

Federal Lands, Done Texas Style

Different Approaches to Plastic Waste

Provided by Continental Divide International

6 Domestic Energy Producers Alliance

February

March April

May June

KIOGA April 15-17 Midyear Meeting - Clarion Inn & Convention Center Garden City, KS www.kioga.org.

Association of Energy Service Companies February 26 – 28 AESC Annual Winter Meeting Tremont Hotel, Galveston, Texas www.aesc.net

TX Alliance of Energy Producers April 28-29 2020 Alliance Expo & Annual Meeting at the MPEC Convention Center, Wichita Falls, TX TIPRO’s 74th Annual Convention

March 23-24, Hilton Anatole Hotel Dallas

Calendar of Collaborating Association Events

The Oil and Gas Collaborating Associations across the country do a great job

offering continuing education, information on industry hot topics and network-

ing opportunities.

Don’t miss these events!

TIPRO’S 74th Annual Convention will bring together Texas produc-ers, mineral owners, policymakers, industry experts and other oil and gas professionals to review evolving policies and other trends that will

impact you in 2020 and beyond. www.tipro.org

The Annual Meeting will host an Expo, Outside Equipment Showcase, Golf Tournament, Oil Patch Reception, Country & Western BBQ (featuring the best ribs in Texas!), industry speakers, two General Sessions, Breakfast & Luncheon. Come meet the top industry professionals from all over the country.

The AESC annual meeting brings upstream well servicing providers and their suppliers together annually to review issues related to technology, political landscape, regulatory affairs, annual HSE Safety Awards, and other committee reports as they pertain to the oil and gas upstream industry. This is the 64th annual meeting to be held by the association.

California Independent Petroleum Association June 4-7, Annual Meeting, Santa Barbara, CA For more information contact cipa@cipa.org

Colorado Oil & Gas Association January 16 Day at the Capitol, Denver CO Come to the State Capitol to meet your elected officials and share about what you do every day to provide Colorado with the energy needed! Register to attend at www.coga.org/events

Colorado Oil & Gas Association

Feb 21, Mardi Gras Ball Exdo Event Center

Mardi Gras Ball is the signature event of COGA, benefiting a different philanthropic organization each year. Focused on positive community impacts. Join us to celebrate those who have best represented the core values of the industry. This year's program will be emceed by former

Bronco, Reggie Rivers. www.coga.org/events

Illinois Oil & Gas Association March 3-5 Annual Convention & Trade Show Oil National Events Plaza, Evansville IN www.ioga.com/events

Independent Oil & Gas Assoc of West Virginia

January 21-22, Winter Meeting

Marriott Town Center Charleston WV www.iogawv.com

Louisiana Oil & Gas Association April 6 Haynesville Shale Golf Classic Southern Trace Country Club Shreveport

Designed by Arthur Hills, this championship 18-hole, 6,916 yard golf

course was voted #1 in the state by Golf Digest magazine.

Louisiana Oil & Gas Association Sporting Clays Shoot June 5, Los Paloma sporting Range, Benton LA

This is 100% networking, bringing together the Ark/La/Tex oil & gas industry to network and celebrate the busiest drilling and production scene in Louisiana

Kentucky Oil & Gas Association 84th Annual Conference, Campbell House, Lexington KY For more information visit www.kyoilgas.org/events

Ohio Oil & Gas Association March 4-6 Annual Meeting Hilton Columbus At EastonColumbus OH www.ooga.org/events or dwelker@ooga.org

The Petroleum Alliance of Oklahoma May 5, Sine Die Harn Homestead OKC

Celebrate the conclusion of legislative session with this fun-filled charity event featuring live music, libations and BBQ. www.thepetroleumalliance.com

The North Dakota Petroleum Council May 19-21 Bismarck Event Center, Bismarck ND

The Williston Basin Petroleum Conference is the largest con-ference and trade show in the nation focused on the Bakken, Three Forks and Williston Basin. We’re proud to bring togeth-er some of leading experts on breakthrough technologies, ener-gy markets, potential untapped formations, the regulatory envi-ronment, and more. www.wbpcnd.com

Utah Petroleum Association January 13-14 Annual Meeting

Sundance Mountain Resort, Sundance UT www.utahpetroleum.org/events

January

DEPA Report on Industry, Legislation and Energy Regulation December 2019 7

August

September

October is traditionally

Energy Awareness Month.

Be sure to participate!

November December

KIOGA August 16-18, 2020 - Annual Convention & Expo - Century II Performing Arts & Convention Center - Wichita, Kansas www.kioga.org.

Colorado Oil & Gas Association

August 18-19, Energy Summit 2020

More info soon www.coga.org/events

Independent Petroleum Association of New Mexico July 22-24, Annual Meeting, Hotel Chaco Albuquerque Plans are moving forward for another exciting agenda filled with great speakers and activities for our members, including our Annual Golf Outing. Sponsorships are available! More information at www.ipanm.org/2020-annual-meeting

Louisiana Oil & Gas Association

September 15-16 2020 Southern Energy Conference

DoubleTree by Hilton, Lafayette LA

www.logo.la/event-calendar

Louisiana Oil & Gas Association

November 3 (Tentative), 2020 State of the Industry: Houma

Courtyard Marriott, Houma, LA

www.logo.la/event-calendar

Western Energy Alliance July 29-31 Annual Meeting Location TBA www.westernenergyalliance.org

The North Dakota Petroleum Council NDPC Annual Meeting Date TBA, Fargo NC www.wbpcnd.com

The North Dakota Petroleum Council August 26ND OilPAC Golf Tournament Medora, ND www.wbpcnd.com

The North Dakota Petroleum Council Bakken Classic Fishing Derby July 15,

New Town, ND www.wbpcnd.com

July

DEPA Executive Director, Jerry Simmons, has a variety topics he can present at your event.

• Things Everyone in the O&G Industry Should Know

• The DEPA Federal Agenda

• The War on Fossil Fuels • Reidentification: Explaining Our Industry to Legislators Visit our website to request an appearance in our “contact” tab.

#TeamDEPA

October

8 Domestic Energy Producers Alliance

allowed on the Senate floor) the best bet is a

quick trial in the Senate.

The White House and House Democrats also an-

nounced a deal on the United States-Mexico-Canada

Agreement (USMCA). Speaker Pelosi announced a House

vote on the USMCA as well next week. Given the close

sequence of the Impeachment and USMCA votes the Sen-

ate will not take final action on the USMCA until after Im-

peachment. Majority Leader McConnell has stated that the

USMCA will follow immediately after final votes on im-

peachment. It was also announced on Thursday the US and

China have reached a trade agreement averting additional

tariffs and the beginning of rolling back some current tar-

iffs in return for Chinese concessions including lowering

trade barriers and purchasing more

US agricultural products.

It was also announced Thurs-

day (December 12, 2019) that Con-

gressional and White House negoti-

ators have reached agreement on an

FY 2020 spending package that

would forestall the need for another

stop-gap spending measure and

avert a potential government shut-

down. The measure will likely be

broken into two separate “minibus” bills allowing for dif-

ferent combinations of Republicans and Democrats to pass

each measure.

All of this sets up a rather surreal final week of Con-

gress in 2019. With the House of Representatives sand-

wiching a vote on impeaching the President between major

bi-partisan votes handing the same President victories on a

major North American trade agreement as well as key

spending priorities.

As a final note, in the absence of a major revelation (and

there is no sign of revelation on the horizon) the Democrat-

ic House will impeach the President and the Republican

Senate will acquit the President. After an FBI investigation

that began before President Trump was sworn into office,

culminating with Mueller Report absolving the President of

any collusion with Russia. After a ceaseless two-year ef-

fort by House Democrats to reverse the outcome of the

2016 election through Impeachment. After an unprecedent-

ed avalanche of negative media from every corner of the

world. President Trump is still standing and ending the

year having been impeached by the House, acquitted in the

Senate and with two major trade agreements and a compre-

hensive spending agreement to carry the government

through the 2020 fiscal year. The establishment won’t have

much to celebrate over the holidays. For the rest of Ameri-

ca its shaping up as a pretty good year.

As Congress races to wrap up business before the hol-

iday recess the stage is set for a surreal last week of ac-

tion in Washington. House Democrats are moving to a

quick vote to impeach President Trump while simultane-

ously cutting deals on trade and spending in order to

shore up those freshmen Democrats elected in Districts

carried by the President in 2016.

On the impeachment front the House is expected to

vote as early as Tuesday (December 17, 2019) on two

Articles of Impeachment - Obstruction of Congress and

Abuse of Power. With no signs of Republican defections

the most likely outcome is a virtual party line vote with

the possibility of a small handful

of mostly Trump-District Demo-

crats breaking ranks to vote

against impeaching the President.

Senate Majority Leader

McConnell has signaled the Senate

will conduct the trial in January.

Negotiations on how the Senate

will manage the impeachment trial

will not begin until a final vote in

the House. McConnell has pro-

posed two options. A short trial, with House Managers

and the President’s lawyers making their respective argu-

ments followed by a vote. The second option would be a

full trial with each side calling witnesses, a process that

could go on for weeks. McConnell has characterized this

as Mutual Assured Destruction and is strongly pushing

for a short Senate trial. With five Democrat Senators and

Independent Bernie Sanders running for the Democratic

nomination, and with Senate rules requiring that all Sena-

tors be seated all day, Monday through Saturday during

an impeachment trial (with no use of electronic devices

Legislative Wrap Up for 2019

Board of

Directors Meeting April 2

Venue TBA

Come for

the meeting, stay for the

cherry blossoms.

DEPA Report on Industry, Legislation and Energy Regulation December 2019 9

Legislative Sessions Member Spotlight Rick

Muncrief Rick Muncrief is the Chairman and

CEO of WPX Energy. He also serves

on the board of the American Petrole-

um Institute (API) and is the Chairman of the Ameri-

can Exploration & Production Council (AXPC).

Rick joined the DEPA Board of Directors in 2019. He

is a petroleum engineer who has nearly 40 years of

upstream and midstream experience. He joined WPX

after five years with Continental Resources where he

was Senior VP of Operations and Resource Develop-

ment.

Since his move to WPX in May 2014, Rick has led an

$8 billion portfolio transformation, quickly shifting

WPX’s emphasis from natural gas to oil and focusing

on two core areas: the Permian and Williston basins.

He has spent the majority of his career in the Rocky

Mountain and Mid-Continent regions, including 27

years with ConocoPhillips, Burlington Resources and

their predecessor companies in technical and leader-

ship roles.

WPX's board named Rick as Chairman of the company

in December 2016. He has a Bachelor of Science de-

gree in Petroleum

Engineering Technol-

ogy from Oklahoma

State University.

He is a member of

the Tulsa Chamber of

Commerce, serves on

the national advisory

board for Gilcrease

Museum and is a sup-

porter of Columbia

University's Center

on Global Energy

Policy.

State Convene Adjourn

Alabama February 4 May 19

Arizona January 13 April 25

Arkansas April 8 May 7

California January 6 August 31

Colorado January 8 May 7

Florida January 14 March 13

Georgia January 13 March 27

Idaho January 6 March 27

Illinois January 8 *

Indiana November 19 March 13

Iowa January 13 April 21

Kansas January 13 May 11

Kentucky January 7 April 15

Louisiana March 9 June 1

Massachusetts January 1 *

Michigan January 8 *

Minnesota February 11 May 18

Mississippi January 7 March 10

Missouri January 8 May 30

Montana No regular session

Nebraska January 8 April 23

Nevada No Regular Session

New Jersey January 14 *

New Mexico January 21 February 20

New York January 8 *

North Carolina May 13 July 3

North Dakota No Regular Session

Ohio January 6 December 31

Oklahoma February 3 May 29

Pennsylvania January 1 December 18

Rhode Island January 1 *

South Carolina January 14 *

South Dakota January 14 March 30

Tennessee January 14 April 22

Texas No Regular Session

Utah January 27 March 12

Virginia January 8 March 8

Washington January 13 March 7

West Virginia January 8 March 7

Wisconsin January 14 May 13

Wyoming February 10 March 6

*Legislature meets throughout the year

10 Domestic Energy Producers Alliance

Keep an eye on the Saudi state-run oil behemoth, Ar-

amco, which should clock in this month as the largest

initial public offering in history. Aramco is already the

world’s most profitable company but recent attacks and

continued regional unrest has diluted much of its luster.

Combined with only a promise for accounting transpar-

ency, it appears that global capital raised is significantly

short of Aramco’s $2 trillion goal. If successful, the

massive IPO’s impact should go far beyond the global

energy industry. Analysts expect much of that IPO cash

to be deposited in the Saudi sovereign wealth fund called

the Public Investment Fund (PIF) – and that could be

good news for innovative tech startups worldwide.

THE SHALE REVOLUTION Back on this side of the Atlantic,

the Shale Revolution has changed the

energy profile of America. It had its

origins in the first wells drilled by

fracking pioneers like Harold Hamm,

who came up with the idea in the

1990s to use horizontal drilling and

hydraulic fracturing in North Dako-

ta’s Bakken region, and then the pro-

cess found perfection with George

Mitchell in the oil and gas fields to the West of Fort

Worth. The methods have been successfully followed by

industry leaders and by young equity-backed hard

chargers who made their first millions flipping leases

and drilling horizontal wells from the Permian to the

Marcellus.

Shale has transformed not just America but the entire

global energy industry. According to the Council of Eco-

nomic Advisers, the astonishing increase in U.S. produc-

tion – giving us true energy independence and made pos-

sible by the shale revolution – saves Americans on aver-

age $2,500 for a family of four in lowering electric bills

and reducing gasoline prices at the pump.

CHEAP MONEY DRIES UP Yet, while American wells continue to produce oil

and the savings per U.S. family increase, cheap invest-

ment money that was flowing freely to the industry until

lately has now dried up and new major players buying

equity for their first-time industry exposure are mostly

gone. There are now fears of an oversupply.

Gone too are the days of hundred-million-dollar equi-

ty commitments or buyouts completed by a handshake or

bar-napkin deals at NAPE. Sluggish returns and com-

modity prices, ESG, environmental, social and corporate

governance, and a millennial belief in the “Green New

Deal” seem to be having an effect on the industry.

As Harold Hamm, chairman and CEO of Continental

Resources Inc., put it, “there is a war on energy” and

together we need to engage the enemy. Look beyond the

headlines: Affordable energy produced under reasonable

regulations and by responsible operators has reduced

emissions by 15 percent since 2007. It seems counterin-

tuitive, but it takes energy to provide clean air and water

and American oil and gas producers are actually leading

the fight toward that goal.

Oversupply followed by the reduction in available

capital, and now overleveraged producers unable to find

an exit or be saved by commodity prices, most likely

means this: Consolidation by the ma-

jors will likely increase in 2020. The

current model is broken, and many

companies and investors are stuck.

But delivering and sharing messages

of clean energy, American jobs, na-

tional security and uplifting the mid-

dle class should still be our mission

heading into the next decade.

MORE ON GEORGE MITCHELL: Texas George Mitchel made some amazing contribu-

tions to our current energy independence. George

passed in 2013, but a new biography of Mitchell, written

by Texas Monthly columnist

Loren Steffy, captures that life

remarkable but also features

Mitchell’s thoughts on sustain-

ability. He was a founding fa-

ther of hydraulic fracturing but

also developed the first master

planned sustainable communi-

ty, The Woodlands community

outside of Houston.

Mitchell wrestled with the

conflict in the later years of his

life and was always searching for and funding solutions.

Writes Steffy: “Sustainable development has created

more livable neighborhoods and greater harmony with

nature even as it has added to the problems of urban

sprawl and increased demand for electricity and gaso-

line.” His legacy and mission lives on in The Cynthia

and George Mitchell Foundation.

Following the Aramco IPO Money Provided by Continental Divide International

DEPA Report on Industry, Legislation and Energy Regulation December 2019 11

Advertise in the DEPA Driller

The DEPA Driller is the way to get noticed

by the decision-makers who can grow your

business. Our membership is made up of our

country’s top oil and gas executives and

associations. Show them you care about

protecting this industry by supporting their

organization. As DEPA fights for domestic

energy production in Washington, D.C. we

all win!

• With the commitment to a nine month

contract, and at least a half page space,

your company will also be acknowl-

edged as a DEPA event sponsor for one

event happening twelve months from

contract execution.

• With just a half page/one year

commitment your company will be

acknowledged as an event sponsor of

one event AND will be placed on our

website for a consecutive three months

as a DEPA supporter.

• New issues release at the end of each

month.

• Issues are emailed AND printed for

maximum reach.

• If you don’t have an ad, we can build

you one! Choose your contract length.

Choose from seven set display sizes,

or contact us for a custom size!

• Ad deadline is the 10th of each month.

• Contact: Cynthia Simonds

CSimonds@depausa.org

Get your message exactly where you want it!

Size 1 mo. 3 months 6 months 9 months 12 months

Full

Page

$1,000

$2,640 $880 per ad.

Save $360

on the total con-

tract, or $120 per

ad from the one

month rate.

$4,920 $820 per ad.

Save $1,080

on the total

contract, or $180

per ad from the

one month rate.

$6,750*

$750 per ad.

Save $2,250 on

the total contract,

or $250 per ad

from the one

month rate.

$8,400** $700 per ad.

Save $3,600

on the total

contract, or $300

per ad from the

one month rate.

Half

Page

H

$500

$1,320

$440 per ad.

Save $180 on the

total contract, or

$60 per ad from

the one month rate.

$2,460

$410 per ad.

Save $540 on the

total contract, or

$90 per ad from

the one month rate.

$3,375*

$375 per ad

Save $1,125 on the

total contract, or

$125 per ad, from

the one month rate.

$4,200**

$350 per ad.

Save $1,800 on

the total contract,

or $150 per ad,

from a one mo rate.

Half

Page

V

$500

$1,320

$440 per ad. Save

$180 on the total

contract, or $60

per ad from the

one month rate.

$2,460

$410 per ad. Save

$540 on the total

contract, or $90 per

ad from the one

month rate.

$3,375* $375 per ad. Save

$1,125 on the total

contract, or $125

per ad from the

one month rate.

$4,200**

$350 per ad.

Save $1,800 on

the total contract,

or $150 per ad from

the one month rate.

Banner

Third

$336

$887

$296 per ad.

Save $123 on the

total contract, or

$41 per ad from

the one month rate.

$1,653

$275.50 per ad.

Save $363 on the

total contract, or

$60.50 per ad from

the one month rate.

$2,268

$252 per ad.

Save $756 on the

total contract, or

$84 per ad from

the one month rate.

$2,823

$235.25 per ad.

Save $1,209 on

the total contract,

or $100.75 per ad

from a 1 mo. rate.

Quarter

Page

$252

$665

$221 per ad.

Save $93 on the

total contract, or

$31 per ad from

the one month rate.

$1,239

$206.50 per ad.

Save $273 on the

total contract, or

$45.50 per ad from

the one month rate.

$1,701

$189 per ad.

Save $567 on the

total contract, or

$63 per ad from

the one month rate.

$2,117

$177 per ad. Save

$900 on the total

contract, or $75

per ad from the

one month rate.

Banner

Quarter

$252

$665 $221 per ad. Save

$93 on the total

contract, or $31

per ad from the

one month rate.

$1,239

$206.50 per ad.

Save $273 on the

total contract, or

$45.50 per ad from

the one month rate.

$1,701

$189 per ad. Save

$567 on the total

contract, or $63

per ad from the

one month rate.

$2,117

$177 per ad. Save

$900 on the total

contract, or $75

per ad from the

one month rate.

Eighth

Page

$126

$333

$111 per ad. Save

$45 on the total

contract, or $15

per ad from the

one month rate.

$620

$103 per ad. Save

$138 on the total

contract, or $23 per

ad from the one

month rate.

$850

$94 per ad. Save

$288 on the total

contract, or $32

per ad from the

one month rate.

$1,059

$88.25 per ad.

Save $453 on the

total contract, or

$37.75 per ad

from a 1 mo. rate.

18%

Discount

25%

Discount

30%

Discount

*In addition to the print ad, get acknowledged as a DEPA event sponsor, for one

event in the 12 months after contract execution.

**In addition to the print ad, get acknowledged as a DEPA

event sponsor, for one event in the 12 months after contract

execution AND have your company logo placed on our web-

site for three consecutive months as a DEPA supporter.

12%

Discount

Domestic Energy Producers Alliance

P.O. Box 33190

Tulsa, OK 74153

Presort First Class Mail

U.S. Postage

PAID

Oklahoma City, CK

Permit #1417

Circle One

Advertise with us! Company:

Contact Name:

Phone: Email:

Please copy this/these people on correspondence:

Email(s):

Billing Address:

Ad Size:

Contract Duration: 1 3 6 9 12 Months

Ad Start Month:

❑Camera Ready Ad Available ❑Build my ad

Total Due: ❑Invoice Requested ❑Check Enclosed ❑Call for CC Payment

Full Page

Half Page Horizontal or Vertical

Banner Quarter Page

Quarter Page

Banner Third Page

Eighth Page

For the full rate card and additional information

visit our website or contact our office

www.depausa.org or csimonds@depausa.org