July 21, 2008

Midland Reporter-Telegram

Bob Campbell and Mella McEwen

Congressman Conaway and Arizona rep teach classes on basics of oil and gas industry

You shouldn't try to legislate on oil and gas until you pass Energy 101, says U.S. Rep. Mike Conaway, R-Midland.

That's why he and one of the few other knowledgeable congressmen held a beginners' class last week and plan more Tuesday and Thursday in Minority Leader Roy Blunt's conference room.

Joining Arizona Rep. Trent Franks, Conaway told 28 neophyte Republicans about leasing and other pre-drilling work, drilling, producing, regulations and supply on July 15.

"You're giving them a drink out of a fire hose," he said. "But they're more interested now that they're getting beaten to death at home, trying to understand what's causing $4 gasoline and what the remedies might be.

"There are a lot of misconceptions -- like oil is a liquid pool and you can go anywhere and find it. Those are rampant in Washington."

Conaway said the partnership with Franks developed when he learned the Glendale, Ariz., president of Liberty Petroleum once had roughnecked for Conaway's late father-in-law Harry Legendre at Cross Plains east of Abilene.

"The turnout was spectacular because we hadn't expected more than 10-12," he said Thursday. "We'll do more if more sign up, but we have full classes next week."

The one-time Odessa roughneck said people from the oilfield take their knowledge for granted and often do not appreciate how esoteric it is to others.

When asked where the mercurial issue is going, Conaway said, "There'll be a push to drill on the Outer Continental Shelf off the East and West coasts.

"But it will just be political fodder until the next administration. If Obama is president, the Democrats will continue blocking it and we'll be even more beholden to the Middle East."

He said Congress members from North and South Carolina, Tennessee, Florida, Connecticut and other states are taking the one-hour classes with power point videos provided by Ben Shepperd of the Permian Basin Petroleum Association.

Taylor Mayne, president of Mayne & Mertz, commended the initiative. He also decried the fact federal legislators are not informed about how the industry works, yet make decisions daily that affect it.

"Anything we can do to help Mike, we need to step up and do," he said.

Midland oil and gas investor Arlen Edgar found the effort a great idea but said, "I wish I could be more optimistic about how it goes."

He liked that Conaway is teaching other Congress members about the industry because he has a background in it.

Both Mayne and Edgar said energy is moving to the top of issues debated in the Nov. 4 presidential election between Illinois Sen. Barack Obama and Arizona Sen. John McCain.

"Energy is of major concern to everyone now," said Mayne. "Anyone who pulls up to a gasoline pump, it hits hard. Energy is having an impact in more areas than we had imagined. We're seeing the ripple effect in food prices; for anything with a transportation component, you're seeing higher prices."

Edgar pointed out recent surveys have found the American public, facing $4 per gallon gasoline, more willing "to do what it takes to increase domestic supplies. Those results may set the stage for Mike to make some progress."

If the public had a good understanding of how the oil and gas business works, said Alex Mills, president and chief of staff of the Texas Alliance of Energy Producers, "A lot of our political problems would not exist.

"Public education has been a central part of our government relations program for more than 25 years. Obviously, we're not going to convince every member on every issue, but an open dialogue and honest exchange of information helps everyone," Mills said in Abilene while crediting Conaway and Shepperd.

"Ben has traveled to Washington to tell the industry's story," he said.