The two largest groups representing the oil and gas industry are pooling their resources to create one of the largest oil and gas trade groups in Washington, amid mounting pressure from new regulations and low oil prices.
The American Petroleum Institute, which represents major multinational oil companies such as ExxonMobil and Chevron, and America’s Natural Gas Alliance, representing large independent producers fueling the shale revolution, will become one fossil-fuel lobbying powerhouse early next year, the groups announced Wednesday.
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“As a single organization, the combined skills and capabilities bring an enhanced advocacy strength to natural gas market development — ANGA’s primary mission — and the combined association’s expanded membership will provide additional lift to API’s ongoing efforts on important public policy issues,” said Jack Gerard, the American Petroleum Institute’s CEO.
The decision to merge the two groups was approved Wednesday by the boards of the associations. The new group will comprise the largest of the independent oil and gas companies and most of the major multinational businesses from the United States. The group will form in January.
Under the arrangement, America’s Natural Gas Alliance’s focus on promoting natural gas “as a clean, affordable solution” to meet the nation’s energy and environmental needs will be folded into a new “Market Development Group” within the American Petroleum Institute that will be headed by the current head of the gas group, Marty Durbin. The merged association will keep the American Petroleum Institute name.
The creation of the group to promote the environmental benefits of gas comes in the wake of a number of Environmental Protection Agency rules to limit greenhouse gas emissions. Many states are looking to gas to shore up their energy supplies while lowering emissions. Gerard also recently announced he will be attending the United Nations climate change talks in Paris, Nov. 30-Dec. 11, to promote the use of natural gas as a clean fossil fuel.
The petroleum group would not say what the strategic aspects of the merger are, or if the low cost of oil was a deciding factor in pooling the resources of the two trade associations. The low cost of crude oil has prompted many shale operations to reduce rig counts, lay off employees and lower production in response to a global oil glut.
Natural gas is currently priced at historic lows due to the high volumes produced from shale rock formations deep underground, forcing much of the nation’s electricity suppliers to switch from coal- to gas-fired power plants.
America’s Natural Gas Alliance was founded in 2009, at the beginning of what has been called the “shale gas revolution.” Durbin said its members “were visionary regarding the benefits natural gas would bring to our energy supply and our economy.”
Durbin says combining the two trade groups continues the original “vision” of the shale producers “by recognizing how best to organize for maximum effect.”
Durbin will hold the title of executive director of market development under the combined association. “I look forward to combining forces to drive even greater utilization of abundant, clean burning and affordable natural gas.”
