Major and independent producers are on track to spend a record amount of money this year lobbying Congress in their quest to block unfavorable legislation and to open up more offshore and onshore lands to oil and natural gas exploration and production.

The Center for Responsible Politics (CPR) reports that the oil and gas industry has spent $55.3 million on lobbying efforts so far this year, and is poised to break its record of $83 million in 2007. Oil and gas was ranked fifth overall in terms of money spent on lobbying this year, coming behind pharmaceuticals/health products ($112.7 million), insurance ($76.5 million), electric utilities ($65 million) and computers/Internet ($59.7 million).

ExxonMobil was ranked ninth on a list of 20 in terms of money spent on lobbying ($8.13 million). Other big spenders were BP ($5.2 million), ConocoPhillips ($4.4 million), Marathon Oil ($3.55 million) and the American Petroleum Institute (API), which represents oil and gas producers ($2.29 million). Oil and gas has spent a huge chunk of change this year with little or no apparent results to show for it.

That’s not necessarily so, said one natural gas lobbyist. “Lobbying is a lot like football. You have offense and defense…I have a feeling that a lot of that [lobbying money] has been directed at defense” to prevent a Democratic-led Congress from passing a windfall profits tax on the oil and gas industry, and enacting the controversial “use-it-or-lose-it” bill that would have required producers to diligently pursue existing leases before being allowed to bid on new leases.

“Sometimes having nothing to show for it is a good thing,” he said. “You defend yourself first” as an industry, “then you look for opportunities,” such as expanded drilling in the federal Outer Continental Shelf (OCS).

Republicans, particularly those in the House, have pressed the Democratic leadership to schedule a vote on legislation that would open more of the OCS to drilling. House Speaker Nancy Pelosi (D-CA) resisted their efforts prior to leaving for the August recess, but she has since indicated she may allow a vote on limited offshore drilling as part of broader energy legislation when Congress returns in September. But Republicans remain wary.

The API has expressed its opposition to a bipartisan Senate proposal that would allow drilling in waters off four Atlantic Coast states and expanded activity in the eastern Gulf of Mexico (see Daily GPI, Aug. 20). “The proposal’s approach to access to federal oil and natural gas resources is far too limited in its scope. And it is unfortunately paired with the imposition of at least $30 billion in new taxes on the oil and natural gas industry that would have the effect of limiting needed oil and gas investment,” said API President Red Cavaney.

The proposal by five Senate Republicans and five Democrats — known as the “Gang of 10” — seeks to open additional Gulf of Mexico areas and allow the states of Virginia, North and South Carolina and Georgia to opt into leasing off their shores (see Daily GPI, Aug. 4). The measure would not open coastal areas off states such as New Jersey and California, which have bitterly opposed offshore drilling.

The Democratic leadership in both the House and Senate are said to be considering legislation that would reflect the limited offshore drilling principles outlined in the Gang of 10’s proposal (see Daily GPI, Aug. 19).

In terms of campaign funds, the oil and gas industry has contributed $19.78 million during this election year, and could very well exceed the $20.2 million level set in 2006 and the $25.9 million in collections during the last presidential election in 2004. Most of the oil and gas contributions (75-80%) in 2002 and 2004 went to Republican candidates.

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