For immediate release
IOGCC Chairman Gov. John Hoeven is calling upon the states – as stewards of the domestic petroleum resource – to help lead the effort in addressing regional price anomalies in the Rocky Mountain region that threaten to curtail domestic production and have caused significant state revenue losses.
The North Dakota governor cited improving communications, planning and policy making as key components of a comprehensive solution in a recently released IOGCC report “Rocky Mountain Region Crude Oil Market Dynamics.”
The report was the final product of a task force formed by former IOGCC Chairman Gov. Dave Freudenthal of Wyoming in May 2006 to investigate why oil prices per barrel were being sold at a lower rate than the same oil being produced in different parts of America.
Gov. Freudenthal charged the task force with uncovering why the oil was being sold at a cheaper price, what made it cheaper and what actions could be taken to improve the situation.
Task force members identified several issues that could have led to the price differential. For example, new crude oil resources in the United States were not promoted as aggressively as the anticipated increased production promoted by Alberta, Canada. Pipelines and refineries were not anticipating the impressive boost of oil being produced from the Rocky Mountain states. Failure to communicate and plan caused the state economies to suffer significantly.
During the past few months, the task force investigated the crude oil market dynamics and made both near and long-term recommendations that should be taken to correct the situation.
The task force included representatives from Colorado, Montana, North Dakota, South Dakota, Utah, Wyoming, the Province of Alberta, the U.S. Department of Energy and the Federal Energy Regulatory Commission.
Additional copies of this report may be obtained by contacting the IOGCC at (405)525-3556. An electronic version is available at the IOGCC’s Web site, www.iogcc.state.ok.us.