Midland Reporter-Telegram

by Mella McEwen

ODESSA — Power needed by the Permian Basin’s energy companies to produce energy remains a primary issue for the Permian Basin.

At its first-ever luncheon held at the Permian Basin International Oil Show, the Permian Basin Petroleum Association offered a panel discussion on how industry, regulatory and legislative cooperation is moving the industry toward solutions.

Railroad Commission Chairman Jim Wright was a special guest at the discussion, telling those in attendance he had enjoyed spending the last few days in the heart of the state’s energy industry.

Wright cited the state’s dominance in energy production and its strong economy.

“That leadership didn’t happen overnight,” he said, praising the industry’s entrepreneurial spirit.

He acknowledged that the industry is dealing with some growing pains — water management and power — but said growing pains are better than the alternative.

The agency looks to work with the industry to ensure it continues to generate energy and revenue.

“We want to work with you for the greater good,” he said.

He went further, adding that he wants to ensure everything the agency does protects everyone in the state and that he takes politics out of the equation.

Michael Lozano, the PBPA’s Texas Legislative Committee chair, and Mike Miller, the PBPA’s New Mexico Legislative Committee, detailed how the industry can work with regulators and legislators to prevent passage of bills harmful to the industry.

Miller said in some instances, he has brought in key players — regulators and legislators — to address pending legislation.

Lozano said he operates in a similar fashion, educating regulators and legislators on any unintended consequences from pending bills. Some of the proposed policies aren’t translating into reality, he said.

Ben Shepperd, PBPA president, noted that in the aftermath of Winter Storm Uri in February 2021, the upstream industry was blamed for not producing enough energy to generate electricity.

“We had to spend a lot of time explaining the process of moving natural gas from the Permian Basin to electric power generators,” he said.

Kristin Gragg, founder of G4 Regulatory Solutions and chair of the PBPA’s regulatory practices committee, said she serves as a liaison between energy companies and regulators.

Her job is to figure out how to marry industry best practices and regulatory goals.

“I try to help regulators understand (those practices) and ask how we can make the policies better,” she said.