Have you been noticing a wave of televised corporate promotions from the oil and natural gas industry? These warm fuzzys come from the likes of the American Petroleum Institute (API), the America’s Natural Gas Alliance (ANGA) and Exxon/Mobil, pointing viewers to Webs ites such as energytomorrow.com.  The main message is that we should be applauding development of domestic oil and gas. Of course with me they are preaching to the converted when it comes to natural gas.

The question remains, though, why are these ads coming out now? I believe there are two main reasons. First, the industry has poised itself to ride a wave of goodwill after Obama’s announcement about increasing offshore drilling in the continental U.S. and Alaska. This could help in garnering local and national support in siting and permitting new drilling facilities, not a small consideration in an increasingly challenging regulatory environment.

Second, and more importantly, political support is needed for bill such as S.1408, known as the Nat Gas Act. The bill has 141 cosponsors in the House and 7 cosponsors in the Senate, including Orrin Hatch [R-UT] and Harry Reid [D-NV], powerhouses from both sides of the isle. The bill allows for tax incentives, such as lowering excise taxes on natural gas products to make them more attractive in the marketplace, and allowing tax credits for the purchase of natural gas vehicles. It also requires federal agencies to purchase “alternative fuel” vehicles for fleets. The greater the buzz that can be created around the development of domestic natural gas sources, the greater chance a bill like this will be passed

I will be following these developments with great interest.

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