Statement of
Carl Michael Smith
Nominee for Assistant Secretary for Fossil Energy
U.S. Department of Energy
to the
Committee on Energy and Natural Resources
U.S. Senate
on
October 25, 2001

Mr. Chairman, I am honored to appear before you today as President Bush's nominee for the position of Assistant Secretary for Fossil Energy, Department of Energy.

If confirmed, I very much look forward to joining the fine team already in place at DOE under Secretary Abraham's capable leadership. I also look forward to working closely with you and your colleagues to shape and administer our developing national energy policy as it relates to the exploration, production, transportation and use of America's oil, natural gas and coal resources.

On June 25 of this year, I had the honor and privilege of welcoming Secretary Abraham to my hometown, Oklahoma City, to witness first-hand an operation that is very common throughout America's energy-producing states. An Oklahoma City-based independent oil and gas exploration company was in the process of drilling a gas well next to the parking lot of its office building. The location already contained two producing oil wells and, thanks to modern technology, was being drilled to a vertical depth of several thousand feet, then making a hard angle turn toward a target zone three-quarters of a mile east under a very popular fish restaurant. This is the norm in my hometown.

Technology, much of which has been developed by the Office of Fossil Energy at DOE, has advanced the safety record of hydrocarbon production to a state unthinkable even a few years ago. Indeed, the Oklahoma City Field, which has produced almost one billion barrels of oil since the 1920s, has producing oil and gas wells in shopping center parking lots, residential backyards, between the runways at the airport, right outside the window of the Governor's office at our State Capitol, and at countless other locations throughout the city.

I was born and raised in the middle of the Oklahoma City Field and attended the only high school in the nation with a producing oil well in the middle of the front sidewalk.

As a young lawyer, I started my professional life representing roughnecks, roustabouts, oilfield service companies and drilling contractors. I represented small- to medium-sized independent oil and gas exploration firms, and, later, larger operators. I was co-owner of a small, independent company (less than 10 employees) drilling and operating oil and gas wells in Central and Western Oklahoma.

In the late 1970s, I joined our state trade association, the Oklahoma Independent Petroleum Association, and was elected to its Board of Directors. I served as Secretary, Treasurer and Vice President of the organization, and was elected its President in 1994. I served on the Oklahoma Energy Resources Board, a state agency, providing environmental cleanup and public education voluntarily funded by our state's producers and royalty owners.

In January 1995, Oklahoma Governor Frank Keating honored me by appointing me to serve as Secretary of Energy in his Cabinet. As Oklahoma Secretary of Energy, I have had the privilege to serve my state as its official representative to the Interstate Oil and Gas Compact Commission, the Interstate Mining Compact Commission, the Southern States Energy Board and the Governors' Ethanol Coalition. I was further honored to serve IOGCC as its Second Vice Chairman in 1998, and its Vice Chairman in 1999.

Oklahoma's coal industry predates the discovery of oil and natural gas in our state. I have had the opportunity to work with an agency in my Cabinet area, the Oklahoma Department of Mines, on state/federal issues involving the Office of Surface Mining; the expanded use of coal resources within Oklahoma; various environmental and coal committees of the Interstate Mining Compact Commission; and have most recently served as Chairman of the Coal and Advanced Power Systems Committee of the Southern States Energy Board.

Both my private and public sector experience have permitted me the pleasure throughout the years of working with various officials within the Office of Fossil Energy at DOE. I have found them to be very helpful and professional to the states and the energy industry as they sought to accomplish their mission to enhance America's economic and energy security by managing and performing energy-related research; partnering with industry to advance clean and efficient fossil energy technology; transferring such technology to the industry; and, developing information and policy options to ensure adequate supplies of affordable and clean energy.

The September 11 attack on America underscores the need to develop a sound national energy policy that will ensure both our economic and military security. The Office of Fossil Energy, working in partnership with our nation's energy producers, must and will play a key role in ensuring our energy freedom.

I am very grateful to President Bush and Secretary Abraham for expressing confidence in me to serve as Assistant Secretary for Fossil Energy. If confirmed, I pledge my full dedication to serve our nation.

Mr. Chairman, thank you and the Committee for your consideration.