 The Montana Petroleum Report provides information of interest to Montanans. We encourage you to forward this e-letter to your friends.
— Dave Galt, Executive Director www.montanapetroleum.org
Energy Pricing is Temporary;
Bad Policy can be Forever
 When prices drop and drilling for oil and natural gas slows down, you know it's only temporary.
When government policies hamper drilling, you know it's like a diamond-forever.
A report released this week by The Wilderness Society blames the recession-driven drop in demand and commodity prices as the main reason oil and natural gas development in the Rockies has been sluggish of late. Well yes, that is one of the reasons our industry has seen less activity than we would like. But prices are subject to change. They go up, they go down, then rise again. Right now we are seeing an uptick.
When government changes the rules to restrict the industry's ability to find and produce energy here in the U.S., the impact is permanent and stagnating.
It's true that weak prices have dampened oil and gas industry development for the past year. It's also true that there could not be a worse time to hobble our industry with more delays, restrictions and higher costs. As companies look at their portfolios of prospective developments, it's certain their investment capital will flow to regions and to countries where risks and delays are lower. Right now, those risks and delays do not favor development in the Rockies.
America's energy needs will grow as the economy recovers and our oil and natural gas industry must have a fair set of rules to make the right investment decisions. A steady pace of development in domestic energy keeps workers employed and strengthens our domestic energy security.
The Montana Petroleum Association, Inc. is a voluntary, non-profit trade association, serving a membership of oil and natural gas producers, gathering and pipeline companies, petroleum refiners, service providers and consultants.
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