Oil producers and industry officials are keeping a close eye on the incoming Trump administration, particularly the next leader of the Environmental Protection Agency (EPA).
Mark Cline of Cline Oil and the Pennsylvania Independent Petroleum Producers (PIPP) said he believes the environment needs to be protected and there needs to be regulations –– but only to a certain extent.
And he, along with the Pennsylvania Independent Oil and Gas Association of Pennsylvania (PIOGA), is holding out hope for the newest EPA administrator. Earlier this month, Trump nominated Oklahoma Attorney General Scott Pruitt, who is considered anti-regulation. In fact, he has lodged lawsuits against the EPA.
“We have a hard time meeting the regulations,” Cline said. Under the Obama administration, Cline said he has seen added regulations, especially over the past four or five years, something that really hits small oil producers.
For instance, Cline said the EPA is now having producers check the amount of methane released from such areas as piping.
“It’s just ridiculous,” Cline said.
Cline said the small producers aren’t in the “same league” as unconventional oil producers.
For his part, Dan Weaver, president and executive director of PIOGA, called the regulations erroneous.
“It was being socialized and not environmentally based, if that makes sense,” he said.
Scientifically driven information is needed in crafting regulations, Weaver said.
Like Cline, Weaver said he doesn’t dispute the fact that rules and regulations are a need, saying that, “We understand you have to have rules.”
Already, Weaver said PIOGA is witnessing an uptick in the industry and thinks the Trump administration will be a good thing in 2017 –– and the next three years.
So does state Rep. Martin Causer, R-Turtlepoint.
“I am certainly optimistic about the impact of the Trump administration on our oil and gas industry and the country’s economy as a whole,” Causer said. “I believe President-elect Trump will be focused on ensuring our energy-related industries reach their full potential, bringing more jobs and opportunities to regions like ours.”
Pruitt isn’t the only nominee who has dealt with the oil industry. Another Trump nominee is Rex Tillerson, the chief executive of ExxonMobil, who is being tapped to be the next Secretary of State.
But the impact on the oil industry would essentially be minimal, Weaver said. The Secretary of State could tackle foreign relations relating to oil production, he said.
Sen. Bob Casey, D-Pa., also weighed in on Tillerson as the prospective Secretary of State.
“Mr. Tillerson, the chief executive of ExxonMobil, has been described as having ‘close ties’ to Russian President Vladimir Putin,” Casey said. “Mr. Tillerson signed an energy agreement worth $500 billion with Russia in 2011 and was awarded one of Russia’s highest honors in 2012, the Order of Friendship decoration. After Russia illegally invaded a sovereign country, Ukraine, in 2014 and annexed Crimea, Mr. Tillerson argued against the international sanctions that held Russia accountable. Additionally, according to reports, Mr. Tillerson has extensive investments throughout the world and will need to explain how, as Secretary of State, he would divest himself from these investments in order to remove conflicts of interest.”