Houston, Texas (22 September 2015) – Today, Senate Democrats dropped the American Energy Innovations Act of 2015, which outlines several new proposals impacting the oil and gas industry. Of particular interest to drilling contractors are proposed new regulations for venting and flaring of natural gas, per-acre fees for non-producing leases and a repeal of tax measures for all major integrated oil companies.
“The bill dropped today by Senate Democrats contains measures that will increase the costs of oil and gas production at a time when the market is going through a correction and thousands of people have been laid off. If these measures were to be enacted, it would result in more jobs lost due to government regulations.” said Stephen Colville, IADC President and CEO. “The EIA forecasts that fossil fuels will continue to supply almost 80 percent of world’s energy use through 2040, so we cannot simply move to other sources of energy without a direct impact on consumers and reliability. It is also the view of IADC’s members that all legislation should be enabling, transparent and fit-for-purpose, while encouraging the economic benefits that derive from a strong energy sector. The provisions contained in today’s bill do not reach this threshold.”
Since 1940, the International Association of Drilling Contractors (IADC) has exclusively represented the worldwide oil and gas drilling industry. IADC’s mission is to catalyze improved performance for the drilling industry by enhancing operational integrity and championing better regulation to facilitate safer, cleaner and more efficient drilling operations worldwide. For more information, visit the IADC website at www.iadc.org.