It
is a pleasure to serve as president of the DPA for the coming year.
I want to thank the DPA Executive Board members for their hard work
over the last year, and many thanks go to Bob Shoup, who did a great
job as the division's president. My hope, and my charge, is that
I will build on what he has done and continue to make the DPA stronger.
The DPA
has been blessed with dedicated leadership over the past several
years, as well as an excellent core of councilors. Our Executive
Board for the coming year plans to continue in this tradition.
One person
I would like to recognize at this time is Norma Newby, manager of
the office of divisions at AAPG headquarters in Tulsa. She is extremely
dedicated and works hard at her job, which keeps the DPA on course,
giving continuity from one board to the next.
We are
hearing a great deal of discussion about ethics in business — especially
the oil business. With issues such as Enron's accounting problems
and Shell having to lower its reserve estimates, lawmakers are clamoring
for answers.
(We have
seen passage of the Sarbanes-Oxley Act of 2002, which makes the
upper management accountable as well as the lower echelon employees.
A violation of this act could result in large fines plus jail time.)
When discussing
corporate ethics, one must keep in mind that ethics, and the way
companies approach ethics, start at the highest level in a corporation.
If a company
is run by people who shade the line between ethical and unethical
behavior, or who ignore the line altogether, this attitude will
be passed down the command structure and will become part of the
company's culture.
I have
had the pleasure of working 23 years for a company that regards
ethics as its utmost priority, and it starts at the very top. Therefore,
I say to all officers and managers within a company, if you cultivate
the impression that the line on ethics can be blurred, it may come
back to haunt you.
Remember,
a large part of corporate ethics is learned by example. If your
employees do not have a good rudder on ethics, you may be the one
they end up taking advantage of. We have all heard of instances
in which companies have received inferior products or services,
only to learn later that some favors have been traded. This could,
and most likely will, have an effect on your company's bottom line.
As an employee,
no matter our position within the company, we have a responsibility
to conduct our business in an ethical manner. Everyone needs to
pay heed to the examples that they set and cultivate.
The DPA
has speakers giving talks at several events regarding ethics and
is in the process of setting up schools to educate members of the
AAPG about ethics and how it can affect you and your company.
As we move
closer to the national elections, I would venture to say that we
can expect to see congressional hearings dealing with higher gasoline
prices and the problems with reserve estimates.
This is
where the DPA is striving to be a leader in protecting your interest.
One function
of the DPA is to write position papers on issues that affect the
oil industry and our ability to pursue our careers and support our
families. If you log on to dpa.aapg.org and go to the Governmental
Affairs Committee, you will be able to read 15 position papers that
already have been written and distributed.
The DPA
is not supporting one candidate over another — our goal is to get
facts in front of lawmakers so they can make informed decisions.
Our representatives
and senators need input from our industry to help shape laws —
or, in some cases, encourage them not to pursue some avenues of
governmental intervention. They will receive information from groups
that are opposed to the oil and gas industry, and in some instances
this information is severely outdated or misrepresented.
Unlike
many groups that oppose our industry, the DPA will present facts
based on the best science and the best data currently available
in our position papers.
Some past
laws, such as the Windfall Profits Tax, have taken money out of
your pockets; when the oil bust of the mid-1980s hit, however, did
you hear of many lawmakers wanting to help this industry by giving
us some of that money back?
Consider
this: Milk is higher per gallon than gasoline, and dairy farmers
are subsidized by your tax dollars so we can have an uninterrupted
flow of milk to the stores.
We must
speak up regarding issues that directly affect us, or we will wake
up one day to find that we have been burdened with some onerous
legislation that will severely impede our ability to work in this
industry and support our families.
With mumblings
from the SEC and Capitol Hill relating to the problem of Reserve
Estimations, the DPA is in the exploratory stages of determining
if we should progress toward a certification class called "Certified
Reserve Evaluator." We are in discussions with the Society of Petroleum
Evaluation Engineers (SPEE) to ascertain if this is something the
two organizations should be taking a lead, in order to head off
mandates imposed by the SEC or new laws that will most certainly
come forward.
We have
set up an ad hoc committee to explore this issue, with the DPA working
closely with the SPEE and Ronald Harrell of Ryder Scott Co. Harrell
published an article in the March 15, 2004, Oil & Gas Journal
titled "The Time Has Come to Certify Reserves Evaluators" (page
24). If you have not read this article, I recommend that you get
a copy.
Over the
last several years, the DPA executive boards have been in the process
of elevating the status of the DPA to a worldwide certification
body.
Did you
know that we have reciprocity with the Geological Society of London?
The DPA
is also working diligently to be observant of issues that impact
domestic exploration. A recently proposed Licensing of Geologist
bill in the state of New York, if passed, would allow persons (i.e.
surveyors and engineers) with no geological education to practice
geology.
The DPA
has written a letter to the appropriate officials concerning this
matter. The DPA's concern is that if these people are permitted
to practice geology without formal training, they will take jobs
from skilled geologists.
As you
can see, the DPA is working hard on issues that can affect you.
If you are not a DPA member, go to dpa.aapg.org,
pull up an application and join. If you are a member, encourage
a friend to join. The dues are less than the cost of one coke or
a glass of tea per week. The DPA needs you; the more members we
have, the more people in positions of power will take notice.