During its 95th Annual Meeting in Boca Raton, Fla., last week, the Independent Petroleum Association of America (IPAA) announced its new chairman for a two-year term while also revealing its first Chief Roughneck Award winner in five years. The two-day event hosted independent producers from across the U.S.
A new chairman. During the meeting's first day, IPAA officials announced that board of directors member Michael Hillebrand will take over as chairman of the association on Jan. 1, 2025, when current Chairman Steven Pruett steps down. Hillebrand is President and CEO of Huntley & Huntley, LLC, based in Pennsylvania. Huntley & Huntley has been led by four generations of private families since its founding in 1912. Pruett is President and CEO of Elevation Resources LLC, an operator in the Permian basin of Texas. Midland-based Elevation Resources is focused on operations in Andrews County on the Central Basin Platform. It was formed in 2013 with financial backing from a group of investors.
The Chief Roughneck Award returns. In addition, in what is seen as an excellent move, IPAA has brought back the annual Chief Roughneck Award, which was interrupted by the Covid-19 pandemic and had not been given out since 2019. This year's recipient is David Kimbell, President and CEO of Burk Royalty Co. Ltd, based in Wichita Falls, Texas. David is part of a multi-generational family that has run and controlled Burk Royalty for many years and operated in a commendable fashion. He has been active in the local community and charities for a long time and has been a vital member of IPAA. The association could not have picked a better example of what independent producers are all about.
Some recognition for World Oil. In addition to the new chairman and Chief Roughneck Award winner, IPAA gave recognition to World Oil for special editorial content. IPAA President Jeff Eshelman recognized Editor-in-Chief Kurt Abraham in multiple sessions for his special, two-part article series on the history of IPAA. If you haven't seen these articles already, you may do so by using the following links:
These articles were put together with the assistance and support of the IPAA staff.
Interesting, urgent topics at IPAA's annual meeting. IPAA's 95th Annual Meeting was an effective, interesting forum, covering a number of important regulatory and operating topics important to independents. These included access to capital; where the wave of M&A activity is headed; what effect artificial intelligence will have on producers; the challenges posed by federal methane mandates; and what the results of the election will be and how they will affect the energy agenda on Capitol Hill.
The ongoing methane problem is particularly onerous. An 80-min. discussion of the situation with the EPA and all the methane reporting requirements that independent producers will have to meet was particularly enlightening. Part of the problem is that the EPA is putting new limits and thresholds for methane reporting into effect on Jan. 1, 2025, and it will cause some independents to have to scramble. Examples of topics that producers must address on methane are pneumatics, gas lift and compression, and gas flaring, in general. And then, there are things like the proposed "waste emission charge," which requires a special discussion all its own. Plus, there is a provision for "large release/super emitter" events. The list for independents goes on from there.
It's not hard to make the statement that the EPA has deliberately changed the thresholds to "ensnare" more companies into doing methane reporting. Independent producers believe that the current administration, via EPA, the Interior Department, and other parts of the Executive Branch, has the goal to make life difficult for the domestic oil and gas industry as much as possible. All of this is in pursuit of a misguided ideological agenda. We at World Oil hope to have more on the methane reporting situation in an upcoming issue.