IOGCC summit to address languishing oil market in Rockies

IOGCC NEWS RELEASE

FOR IMMEDIATE RELEASE -
Contact:  Erica Carr  405-525-3556, ext. 1erica.carr@iogcc.state.ok.us

IOGCC summit to address languishing oil market in Rockies

Interstate Oil and Gas Compact Commission Chairman Gov. John Hoeven of North Dakota will host a Rocky Mountain Crude Oil Market Dynamics Summit, Sept. 4-5, 2007, in Denver, Colo., to address unstable market conditions in the region that threaten domestic production.

Since early 2006, oil producers in the area have received as much as $25 to $30 per barrel less than what was paid for similar quality oil in other regions of the country.

As a result, North Dakota, Montana, Wyoming, Colorado, South Dakota and Utah have lost millions of dollars in revenues that would have been reinvested into more development, production of domestic energy, jobs and economic activity.

Last year, due to lower prices, North Dakota lost $19 million that would have gone to help fund schools and state government programs, according to Ron Ness, president of the North Dakota Petroleum Council.

The IOGCC, as a steward of domestic petroleum resources, began studying this issue under the leadership of 2006 IOGCC Chairman Gov. Dave Freudenthal of Wyoming. A task force composed of representatives from Rocky Mountain states, Canada and federal agencies explored the crude oil market dynamics in the region that were resulting in lower prices and developed its recommendations earlier this year.

“It is the intent of the IOGCC to further the work of the task force to develop the valuable resources in this region,” said Hoeven. “This summit will bring together a cross-section of the region’s stakeholders involved in all aspects of the crude oil market from extraction to final destination for the purposes of education, dialogue and planning for the future.”

Regional governors attending the summit will participate in a forum to promote an open discussion on how to resolve and prevent future problems from occurring not only in the Rocky Mountain region, but across the United States.

Brian Jeffries, executive director of Wyoming Pipeline Authority, another state affected by the issue, stressed the importance of participation by all key stakeholders in the Rocky Mountain region crude oil industry.

"The continuing collective efforts of the state governments, local producers and the Interstate Oil and Gas Compact Commission are essential to the development of adequate infrastructure to bring our resource base to market,” said Jeffries.

Those interested in attending the summit may register at http://www.iogcc.state.ok.us/events.html or contact Amy Wright at (405) 525-3556, ext. 117.

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The IOGCC is a multi-state government agency that promotes the conservation and efficient recovery of domestic oil and natural gas resources while protecting health, safety, and the environment. Established by the charter member states’ governors in 1935, it is the oldest, largest and most effective interstate compact in the nation.