Overview
The Nation’s capital has been as frenetic as ever as we move through Spring, with Congress rushing to finish legislative work ahead of midterm elections in November. Only about 10 full weeks of in-session days remain for the House of Representatives before August recent, at which point Members will return to their districts to campaign ahead of November 8th. With both chambers still needing to complete the Appropriations process, NDAA, and a bevy of other important items, there will be little margin for error for House and Senate leadership heading into election season. Still on the table are major Democratic legislative priorities, many of which were reintroduced to the conversation in the President’s FY 2023 budget proposal, released in early March. These include tax changes related to NOL, IDCs, percentage depletion, and more. On the drilling front, the industry continues to fight a messaging war with the Administration on profits, production, and prices, as well as against the seemingly ever-lasting ban on federal leasing and permitting. On the offshore front, operators and contractors are currently putting up opposition to quixotic changes in crewing and manning regulations found in the latest Coast Guard Reauthorization. IADC is currently reaching out to Senate Commerce committee members in an effort to flag potential unintended consequences to offshore rig crews that could come to fruition should the provisions be included in the final bill sent to the Senate floor.
IADC’s advocacy operations have been busy as ever. On the funding and budget front, IADC is pleased to share that for the first time in many years, we will be submitting appropriations requests to allied offices on Capitol Hill, in an effort to garner support for federally funded programs help drilling contractors in areas like workforce recruitment and critical minerals development. IADC continues to chime-in in support of good-sense legislation aimed at helping the industry and U.S. drilling market. This includes recent support of a tranche of bills introduced by members of the House Natural Resources Committee.
IADC President Jason McFarland issued the following statement detailing IADC’s support of the bills:
“At a time in which the United States and nations around the world are facing rampantly growing energy scarcity and fuel prices, these bills are text-book examples of the type of legislation needed to support rig owners and ramp-up drilling. On behalf of IADC’s member companies and the hundreds of thousands of workers they employ, I’d like to thank Representatives Graves, Carl, Moore, Van Duyne, Herrell and Rosendale for their continued support of good-sense energy policy, and for recognizing the urgent need to boost exploration, drilling and production in the North American market.”
IADC has also been actively engaged with industry partners and the Federal agencies in relation to monitoring the tragic situation unfolding in Ukraine. Following Ukrainian President Volodymyr Zelenskyy’s March address to Congress, IADC released the following statement in support of Ukraine:
“IADC applauds President Zelenskyy‘s courage and condemns the Russian Federation’s invasion of Ukraine. We support the many recent efforts by U.S. and European Union officials to support the Ukrainian people, as well as hold the Putin Regime accountable for this violent and illegal act of war.
We urge our global energy partners operating in and around the region to exercise increased awareness, particularly those engaging in drilling activities in the Black Sea. As seen in the past, the prospect of a well-control emergency is significantly increased in the presence of armed conflict, and such incidents can have devastating impacts on human safety and the environment.
The invasion and subsequent effects we are now seeing on global energy markets, geopolitics, and the lives of innocent Ukrainians, underscore a message which IADC has long espoused; that the sustained development of oil and gas is critical to every nation’s security. IADC member companies are present in over 70 countries across 5 continents, and stand ready to work with regulators, policymakers, and industry partners to safely and responsibly access the world’s energy resources.”
Want to Get Involved?
On the horizon is a DRILLERSPAC fundraising blitz, June DC Fly-in, Pennsylvania rig visit, energy policy roundtable, and potential introduction of legislative items helpful to drilling contractors that IADC has been working with House and Senate members on. If you would like to get involved with any of the above, please reach out to Matt Giacona, IADC Director of Government & Industry Affairs – 313 580-6268, Matt.Giacona@iadc.org
