OREANDA-NEWS. In an era of $30/bl, the US oil industry continues to push Washington, DC, for the same things it did when prices were at $100/bl — greater access to federal lands and relief for current and future regulations it insists are too onerous.

The strategy from industry lobbyists reflects an expectation that the White House, which is prioritizing a transition away from fossil fuels, is unlikely to hear any pleas for help for the industry. The industry's congressional allies note the severe pain that the downturn in prices has caused for producers and state finances, but they too remain focused on creating more domestic energy exploration opportunities.

The Independent Petroleum Association of America, which this week is hosting senior oil company executives in Washington for meetings with the members of Congress, told Argus that regulation by federal agencies, tax provisions and endangered species listings remain main issues for its members.

The long list of regulations that group and other oil and natural gas industry associations are fighting include the US Bureau of Land Management's proposed hydraulic fracturing rule, methane emission regulations and royalty rate proposals.

Increasing access to America's energy resources, including in the offshore zone, federal lands and the Arctic, is a top priority, Senate Energy and Natural Resources Committee chairman Lisa Murkowski (R-Alaska) says.

Oil market weakness is felt primarily in the producing regions, but the White House says the US overall has benefited from low prices.

The boost in real income and consumption as a result of the decline in oil prices added 0.5 percentage points to real GDP growth last year, according to the White House Council of Economic Advisers. That contribution offset a 0.3 percentage point decline in real GDP growth last year as a result of cuts in oil drilling and exploration, for a net positive effect of 0.2 percentage points.

The positive income effect from lower oil prices is lower than in the previous periods of price declines because the US imports less oil and produces more domestically, the White House agency said.

The Federal Reserve's latest survey of business sentiment, released today, noted the pressure on finances from some producers as a result of the price slump noted the pressure on finances from some producers as a result of the price slump. The Beige Book said some oil industry respondents complained of reductions in financial borrowing bases, which could create liquidity issues later this year.

But the Fed said last month it was not worried about a potential contagion effect of the oil market on the US banking system, noting that the largest US banks have a limited exposure to oil and natural gas drilling.

Senior Fed officials in recent months have referenced the price of oil and its effect on inflation in highlighting the deslcision-making process on the US interest rates. The price of oil is "on the minds of almost everyone these days," US Federal Reserve vice-chairman Stanley Fischer said on 24 February, adding that the oil price recently became a "macroeconomic issue."

The Fed's Federal Open Market Committee next will weigh a decision on interest rates at its meeting on 15-16 March.