Dave Galt - September 27, 2007
Montana Petroleum Association
Oil and Gas Development
The Montana Petroleum Association, or MPA, represents many aspects of the petroleum industry in Montana, from exploration and drilling to transportation and refining. Our industry is under attack with misinformation from well organized and well funded groups whose principle objective appears to be stopping oil and gas development. The petroleum industry has become increasingly multifaceted; touching the lives of each and every person on our planet. Yet, it is also an industry that most Montanans, indeed most people, know very little about. The MPA believes that today, more than ever before, Montanans must give thoughtful consideration to how we obtain and use energy, particularly petroleum.
In order to better understand our industry, it is important to understand the challenges that lay ahead. The MPA offers these facts for you to consider:
• The International Energy Agencies’ World Energy Outlook projects that 81 percent of global energy demand in the year 2030 will be met by fossil fuels, such as oil, natural gas and coal;
• Last year the US imported 60 percent of its oil;
• The 10 largest oil and natural gas companies in the world are owned by foreign governments;
• Less than 10 percent of the worlds proven oil reserves are controlled by U.S. oil companies and
• 85 percent of potential off shore U.S. oil and natural gas sites in the lower 48 states are restricted by current government policy.
The consequences of these statistics are eye opening. Our nation’s dependence on foreign oil makes us vulnerable, putting our current standard of living at risk. However, through increased domestic oil production, reduced energy use and alternative energy sources, we can reduce our dependence. Unfortunately, when it comes to increasing domestic production the industry runs into countless attacks and roadblocks by groups determined to stop energy production.
Oil and gas development on public lands, designated as multiple use, are under attack by environmental groups who want development stopped. In Montana, BLM leases sales are under attack as a result of unfounded fears of environmental degradation. Just two months ago, 73,000 acres of multiple use public land in Garfield and McCone counties were deferred from a BLM lease sale. Last week, the Wilderness Society warned us of rampant drilling in environmentally sensitive areas of eastern Montana and the July/August issue of Montana Outdoors Magazine featured an article grossly misrepresenting oil and gas exploration in Montana in an attempt to mislead the public.
In another attempt to shut down drilling, obstructionists have filled Montana’s newspapers with articles about development harming the sage grouse. In reality, this is not the case. According to Montana Fish, Wildlife and Parks, biologists, sage grouse populations are healthy, stabilized and increased between 1995 and 2005. Such information negates arguments from some environmental obstructionists that wish to halt energy development operations.
The growing protests and media campaigns have left a false impression of the impact of oil and gas development in Montana. As a representative of an industry providing thousands of well paying jobs and millions of dollars in critical taxes to rural schools and Montana’s general fund, I find the continued misrepresentation of the facts disturbing, as should every Montanan. The members of the Montana Petroleum Association live and work in Montana. Many of us are life long hunters and anglers. We want our wildlife heritage kept intact. We also recognize why Montana is called the Treasure State, and those treasures include wildlife and quality of life just as well as oil and gas.
On behalf of the Montana Petroleum Association, I am Dave Galt.
September 27th 2007
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