Energy Producers Seek Research Funds
By Jack Money, The Oklahoman
Jan. 15–Oil and gas industry representatives are seeking money from the Oklahoma Legislature this session to start a research and development program similar to the one started a year ago for alternative fuels.
Senate Bill 1475, proposed by state Sen. Brian Bingman, R-Sapulpa, is comparable with one that made it through the 2007 Legislature asking for research dollars for bioenergy fuels.
Like its predecessor, Bingman’s measure proposes research into the industry by experts and by researchers at Oklahoma’s colleges and universities.
It also proposes using the state’s vocational-technical schools to disperse information to independent oil and gas operators who own oil and gas wells within Oklahoma.
Bingman and executives with the Oklahoma Independent Petroleum Association said Monday they are unsure what type of success they will have with the effort.
But they assert it deserves thoughtful consideration, given that oil and gas well owners are contributing a significant portion of Oklahoma’s budget during the coming fiscal year through the gross production tax.
The tax is expected to generate more than $1 billion dollars for the coming fiscal year, they said Monday.
Bruce Stallsworth, the association’s senior vice president of governmental affairs, said that tax amount primarily depends on the prices oil and gas are getting as they are produced from Oklahoma wells.
Because well owners can’t guarantee prices will stay high, the state needs to concentrate on technological advances that will keep the oil and gas industry busy in the Sooner State for decades to come.
Stallsworth noted, for example, that some state officials believe more than 85 percent of available oil remains in Oklahoma’s old oil fields.
“So why not create an oil and gas technology fund in the state of Oklahoma to be sure the industry stays on the path it currently is on?” he asked Monday.
“Oil and gas made Oklahoma,” Bingman added. “And it is going to sustain Oklahoma.”
Mike Terry, president of the association, said there used to be research and development money provided by the federal government, but said that mostly is gone now.
While bigger companies are doing research, not as much money is going into it. And the research often is proprietary, keeping it from smaller, competing companies.
Bingman said Monday he would work to keep his measure alive until the end of the session, and was hopeful it ultimately would be funded.
“There’s a lot of oil and gas left in the ground, and we need to find a way to get it out,” Bingman said.
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