Now that President Bush has signed the Energy Policy Act of 2005, the oil and gas industry has mixed reviews about its benefits for domestic E&P efforts.

Despite a price tag of $12.3 billion during 10 years, the bill's proponents say the legislation is a positive step for U.S. independents. Some analysts, however, say a closer look reveals a lack of relief for consumers from high commodity prices and provides no new access to restricted exploration areas offshore the east and west coasts of the U.S.

Still, the bill is landmark legislation, the most comprehensive energy policy act in decades, if ever.

"For more than a decade, domestic oil and gas producers have been advocating changes to national energy policy that would help maintain this country's oil and natural gas supplies," says IPAA president Barry Russell. "[This bill] is an encouraging sign that Congress is serious about this nation's energy problems."

He adds that producers have identified three policy solutions that could help domestic production: increased access to some non-park, non-wilderness federal lands; encouraging new capital to flow into the industry; and protecting the industry from unnecessary regulations. All of these are addressed, to a degree, by the new act.

Secretary of Energy Samuel W. Bodman says, "By encouraging greater efficiency, increased energy production in environmentally responsible ways and encouraging investment in our nation's outdated energy infrastructure, this bill takes a balanced approach and embodies the right priorities for the American people."

For more on this, see the September issue of Oil and Gas Investor. For a subscription, call 713-993-9325 Ext. 126.

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