The U.S. Senate has approved a bill including $500 million inloan guarantees for independent oil and gas producers and thepetroleum service industry. The loan guarantee program is part ofH.R. 1664, which is now on its way to a House/Senate conferencecommittee. The product of that committee will then be sent back toboth houses for ratification. The bill drew praise from theIndependent Petroleum Assoc. which called it a “tool that America’soil and gas producers will be able to use to help them recover fromthe recent devastating period of low oil prices.” The groupcredited Sen. Pete Dominici, R-NM for leading the initiative. Underthe program 85% of the loans of up to $10 million will be coveredby a government-backed repayment guarantee. The bill alsoestablishes a $1 billion loan program for the steel industry.

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