Tuesday, February 24, 1998

Leaders of oil and gas industry face challenges

By DOUG WILLIAMSON

Business Editor

Oil and gas leaders need to become teachers, educating lawmakers and the public about the challenges the industry faces.

U.S. Rep. Charles Stenholm (D-Abilene) Monday told members of the West Central Texas Oil and Gas Association they need to "have the same dedication in solving long-term problems, or opportunities as I call them, as we have with other industries."

He used various aspects of the agricultural community pulling together on issues as an example.

The keys are "cooperation, coalition-building and compromise," Stenholm told more than 200 petroleum industry folks at the Abilene Civic Center.

"It is the only way to get there. The challenge we have is to find the best compromise," he said. "There never has been a more critical need to educate Congress. You cannot do it by yourself. You need like-minded coalitions."

Stenholm noted that one of the challenges facing the oil and gas industry is the glut of imports. During the 1973 Arab oil embargo, 35 percent of the oil in the U.S. was imported. That grew to 45 percent in 1991 during Operation Desert Storm. Today, it is at 53.1 percent, he said. Besides the implications on the petroleum industry, Stenholm expressed concern over the trade imbalance of $113 billion. Of that, $60 billion is oil and much of the rest is from the automobile industry.

"Trade is critical to America," he said. "We are attempting to learn how to survive in an international marketplace."

He called for "tractor-seat common sense environmental rules ... based on the best science available. You need to spend the money on research to first find the solution before imposing the corrections."

Without a solution to the problem that works and the ability to maintain competition, "you shoot yourself in both feet," he said.

The congressman attacked the current environmental clean-up Super Fund's record as "dismal" with fewer than 150 polluted sites cleaned up and more than half of the money spent for litigation.

Also during the luncheon meeting, Russell Taylor of Nordan Oil and Gas was presented the Wildcatters Award and Bill Core of Instrument Maintenance became president of WeCTOGA. Outgoing WeCTOGA Executive Vice President Morris Burns was presented with a fly-fishing rod and a plaque.