By Tom Kleckner and Rich Heidorn Jr.
WASHINGTON — With low oil and gas prices crimping the petroleum industry’s budgets, two major energy lobbying groups are combining forces. The American Petroleum Institute and America’s Natural Gas Alliance will begin 2016 as a single organization under the API banner.
The move appears to be driven by a desire by members of ANGA — a smaller, newer organization — to trim costs. Seven of the 17 members listed on ANGA’s website are also API members.
API, founded about 85 years ago, has more than 625 members, including refiners, suppliers and pipeline operators. In 2013, according to its IRS filings, it had a staff of about 300 and a $49 million payroll, one-fifth of its $238 million budget.
ANGA, founded in 2009, has a staff of about 22 representing 17 dozen independent natural gas exploration and production companies. It reported $7.2 million in payroll in its $67 million budget for 2013.
Ominously, ANGA’s biggest source of income, program service revenue — dues — dropped by more than a quarter in 2013, from $76.7 million in 2012 to $56.5 million in 2013. API’s program service revenue dropped from $225 million to $210 million over the same period.
ANGA ran an operating deficit of more than $10 million in 2013, following a shortfall of $7 million in 2012 — this after running a surplus of $53 million as recently as 2010.
Data for 2014 is not yet available.
“As a single organization, the combined skills and capabilities bring an enhanced advocacy strength to natural gas market development,” API CEO Jack Gerard, who will remain in his position, said in a statement. “The combined association’s expanded membership will provide additional lift to API’s ongoing efforts on important public policy issues.”
ANGA president Marty Durbin will lead a new group at API that will handle the gas lobby’s interests. ANGA members not already affiliated with API will become full members.
The organizations did not return requests for comment on whether the merger would result in layoffs. In an email to “colleagues” Tuesday, Durbin named four ANGA staffers he said would be joining him in the transition, promising they would provide “a continued high level of engagement and expertise.”
Gerard earned $14.1 million in 2013. Durbin earned $767,000 after becoming CEO in May of that year.
According to The Hill, API spent $9 million lobbying Congress last year — more than any other energy trade group — while ANGA spent $1.4 million.
Congress’ approval last week of a repeal of the decades-long ban on crude oil exports gave API a rare chance to celebrate lately. It said the legislation “will help bring U.S. energy policy into the 21st century.”
