A note from President & CEO, Doug Peters:The Abilene Chamber enjoys its partnership with the Texas Alliance of Energy Producers and, because of the influence that energy has on Abilene and the West Texas economy it is our pleasure to introduce you to Jason Modglin, the organization’s new President of the Texas Alliance of Energy Producers. Please join us as we welcome Jason into his role and as we enhance our working relationship with this important partner organization. ---
The Texas Alliance of Energy Producers is a proud member of the Abilene Chamber of Commerce. We were created in 2000 but have roots stretching back 90 years from the leadership and service of the North Texas Oil & Gas Association based in Wichita Falls and the West Central Texas Oil & Gas Association based in Abilene. When they merged in 2000, the Alliance continued both associations’ missions to deliver representation for independent oil and gas operators and affiliated service companies in Austin, Washington D.C. and in leveraging the size of our diverse membership to find affordable, high quality insurance and employment services that members can utilize to stay in business.
While we wait for the Presidential election to finalize, we are preparing for the Texas legislative session starting in January. Interacting directly with lawmakers has become increasingly challenging due to social distancing limitations. The Texas Capitol Building has been closed to the public since mid-March, as have the Austin offices for the Railroad Commission of Texas and the Texas Commission on Environmental Quality (TCEQ). The Alliance has embraced webinars and the use of digital platforms to bring our members into the conversations with lawmakers and regulators like recent guest Congressman Dan Crenshaw.
The upcoming Texas legislative session will be challenging. The focus will be on budgetary limitations and the decennial redistricting process. A top priority for the industry will be working to make sure the Railroad Commission and the Texas Commission on Environmental Quality have the resources they need. We are extremely grateful for the excellent representation from Abilene-areas legislators Stan Lambert, Dawn Buckingham, Charles Perry and Jodey Arrington.
One tremendous Alliance resource is industry leading economic analysis to help small, independent operators make business decisions in the face of uncertainty. To do that, the Alliance draws on the experience and expertise of its Executive Vice President and Petroleum Economist Karr Ingham. Since March, Ingham has been an indispensable resource for operators and the media in understanding global actions and the local impacts on the oil and gas industry.
The data from his monthly Texas Petro Index (TPI) shows a downward trend starting in February 2019 due to global oversupply. The TPI is down 27.5% compared to the September 2019, precipitated by the coronavirus suppressing demand and an ill-founded attempt by Russia and Saudi Arabia to flood the market with cheap crude in a fight for market share. There is room for optimism, however, as prices have recovered since the TPI endured its largest ever monthly drop in April 2020 and he have seen a small number of jobs added back to the oilfield.
This year, the Alliance is celebrating our 90th Anniversary. In that time, we have had the honor to serve thousands of families and companies between Abilene and Wichita Falls that have thrived through a changing Texas oil and gas industry. Many continue to produce to this day and our mission has grown to serve members across the state. We continue to break new ground. This past April, Cye Wagner of Fort Worth-based Cooper Oil & Gas Inc. became Chair of the Texas Alliance of Energy Producers' Board of Directors. With her election, Wagner becomes the first woman to serve as board chair in the Alliance's 90-year history and for any major Texas oil and gas association. She brings an important perspective and deep expertise to the Alliance as a second-generation operator and steward of the 40-year-old family business. As Board Chair, she will support the Alliance's mission to effectively represent the Texas oil and gas industry and the interests of smaller independent oil and gas companies.
Despite the economic headwinds, we see tremendous opportunity during these challenging times to further grow our membership. As companies cut budgets, the Alliance’s cost saving programs to lower insurance costs or reduce payroll costs become strong selling points for membership. And we continue to innovate with our insurance partners to bring additional offerings to further help our member companies reduce their costs.
The Alliance pursues these opportunities for the express purpose of promoting small, independent operators because of their extraordinary value to Texas and ability to drive innovation in upstream activities. Independent producers are the backbone of the Texas oil and gas industry and the Alliance will be there to tell their great story for the next 90 years.
Jason Modglin serves as the President of the Texas Alliance of Energy Producers. https://texasalliance.org/