Cross-Posted from DeSmogBlogOutgoing Interstate Oil and Gas Compact Commission (IOGCC) chairman Phil Bryant — Mississippi’s Republican Governor — started his farewell address with a college football joke at IOGCC’s recent annual conference in Columbus, Ohio.
“As you know, I love SEC football. Number one in the nation Mississippi State, number three in the nation Ole Miss, got a lot of energy behind those two teams,” Bryant said in opening his October 21 speech. “I try to go to a lot of ball games. It’s a tough job, but somebody’s gotta do it and somebody’s gotta be there.”
Seconds later, things got more serious, as Bryant spoke to an audience of oil and gas industry executives and lobbyists, as well as state-level regulators.
At the industry-sponsored convening, which I attended on behalf of DeSmogBlog, it was hard to tell the difference between industry lobbyists and regulators. The more money pledged by corporations, the more lobbyists invited into IOGCC’s meeting.
Perhaps this is why Bryant framed his presentation around “where we are headed as an industry,” even though officially a statesman and not an industrialist, before turning to his more stern remarks.
“I know it’s a mixed blessing, but if you look at some of the pumps in Mississippi, gasoline is about $2.68 and people are amazed that it’s below $3 per gallon,” he said.
“And it’s a good thing for industry, it’s a good thing for truckers, it’s a good thing for those who move goods and services and products across the waters and across the lands and we’re excited about where that’s headed.”
Bryant then discussed the flip side of the “mixed blessing” coin.
“Of course the Tuscaloosa Marine Shale has a little problem with that, so as with most things in life, it’s a give and take,” Bryant stated. “It’s very good at one point and it’s helping a lot of people, but on the other side there’s a part of me that goes, ‘Darn! I hate that oil’s dropping, I hate that it’s going down.’ I don’t say that out-loud, but just to those in this room.”
Tuscaloosa Marine Shale’s “little problem” reflects a big problem the oil and gas industry faces — particularly smaller operators involved with hydraulic fracturing (“fracking”) — going forward.
That is, fracking is expensive and relies on a high global price of oil. A plummeting price of oil could portend the plummeting of many smaller oil and gas companies, particularly those of the sort operating in the Tuscaloosa Marine.
Tuscaloosa and Oil Price
Governor Bryant’s fears about the price of oil are far from unfounded, serving as a rare moment of frank honesty from Mississippi’s chief statesman.
As discussed in Post Carbon Institute‘s recent report, “Drilling Deeper: A Reality Check on U.S. Government Forecasts for a Lasting Tight Oil & Shale Gas Boom,” the fracking industry relies on high oil prices to stay on the drilling treadmill and keep shale fields from going into terminal decline. Further, future projections of shale gas and oil fields are wildly over-inflated, argues the Post Carbon report.