BRUCE HINCHEY

Perspective

Oil and natural gas are in the news everyday, but rarely do the stories focus on the positive role they play in our broader society n improving our quality of life.

What often gets overlooked is the staggering amount of money individual states receive in royalties for the exploration they allow on their land. This year royalties climbed to a record $2.2 billion, with the lion's share going to the five Rocky Mountain states where the majority of onshore exploration takes place n Wyoming, New Mexico, Utah, Colorado, and Montana.

These billions go a long way to support state spending and social programs. For example, the average cost of immunizations to protect one child against the six major childhood diseases is about $15, and that includes vaccines, syringes, needles, equipment and delivery. At that rate, these royalties could pay for more than 133 million immunizations, covering every child and having significant amounts left over because the entire population of these five states n counting adults and children n is about 10.5 million.

The impact is clear and the benefits are obvious. America's strong and dynamic economy fills state and federal coffers with the money they need to do more for our fellow citizens.

Energy is the lifestyle of the U.S. economy. Oil and natural gas fuel most of transportation by car, bus, truck, boat, plane and train; generates much of the electricity that heats and cools workplaces, homes and cities; and provide petrochemicals for the fabrics that make clothing and footwear, and that are used for home building, medical devices, soft drink products and food packaging, and even our computers and microchips. In addition, the oil and natural gas industry employs 1.5 million people directly and indirectly provides jobs for 5.3 million people.

It's true that our industry has recently enjoyed high profits. Yet few people know that for the better part of a 10-year period, ending in 2003, our return on investment was less than half of that enjoyed by all the other industrial companies. During that time, we refocused our efforts on becoming a more efficient industry, investing in new people and new technology, and we're just now enjoying the benefits of those decisions. Still, we never rest. The oil and natural gas industry is set to invest up to $250 billion in new projects in the next three years.

Some say our society is too dependent on oil. Yet there is no other energy source that is as versatile, portable or efficient. This is the season of giving, and America's oil and natural gas industry takes great pride in knowing that we're doing our part. The men and women in our industry take pride in knowing that if we do our job well, if we succeed in delivering the energy that our neighbors need and want, we will be partners in bringing growth, opportunity, and a better quality of life to all Americans in every state.

Bruce Hinchey of Casper is president of the Petroleum Association of Wyoming.