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| Boone Pickens Homepage Electronic Publishing Center |
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REMARKS TO
MESA EMPLOYEES
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Thank you, Paul.
It’s good to see all of you.
I’ll be talking to you about the importance of Mesa’s Political Action Committee, but first I’d like to outline Mesa’s future.
[Handwritten addition: You do what you can do.]
As I’m sure you’re all aware, the oil and gas industry is still in a slump.
We don’t expect the domestic oil situation to get better any time soon, but we’re preparing for an upturn in the natural gas market.
The natural gas oversupply problem has kept prices depressed for about eight years now.
We’ve been predicting for quite some time that the gas overhang will begin tapering off in 1989.
All indications are that our predictions are on target. This is, of course, very important because almost 80% of our reserves are natural gas.
Our focus is to increase our gas reserves. . .You may have heard about our efforts to purchase a large block of Tenneco’s assets; that’s in the works and we hope to be able to elaborate soon.
But there’s a new development that will impact the future of natural gas: Gas has begun to receive a lot of attention as a partial answer to America’s environmental and energy problems. Environmentalists are pushing for increased natural gas usage over oil, coal and other fuels because gas is the cleanest fuel.
And natural gas is still relatively plentiful and inexpensive in the United States. . .so people are beginning to realize that natural gas can help replace imported oil.
Less imported oil means reductions in our dependence on foreign energy and in our trade deficit.
At the same time, it will create a lot of jobs here at home. . .One study indicates a 1 TCF increase in domestic natural gas production would result in the creation of 64,000 new jobs.
With the increasing public and political support, we have the opportunity to greatly expand our natural gas markets. . .meaning increased jobs, salaries, shareholder profits and general prosperity.
But the natural gas industry is still highly regulated and misunderstood. . .that’s where you and Mesa PAC come in.
To make sure our interests are served, we have to be politically active. . .too much is at stake for us not to get involved.
Mesa PAC is non-partisan. . .it looks at candidates’ stands on political issues, not their party affiliations.
Primarily, to get Mesa PAC’s backing, candidates must support the Free Enterprise system.
In looking to increase the natural gas market, we’re asking only for our elected officials to let the free market work.
Gas is an economically and environmentally viable fuel. . .it doesn’t require government subsidies, just a free market.
In contrast, dirtier and less economical fuels such as coal and shale oil have received government protection.
So a return to free market principles will help us immensely.
Mesa PAC funds go to local, state and national candidates. Mesa obviously has a stake in local politics, but state and national
issues have proven critical to our success:
—Kansas, infill drilling, for instance. . .Mesa PAC was a big factor
1988 is a very important year for national politics because it’s a presidential election year.
And again, you can bet the 101st Congress will deal with natural gas deregulation, so we’ve got to make our voices heard.
Mesa PAC has a proven record of protecting our interests. It was instrumental in educating and supporting officeholders who in 1987 helped Mesa maintain its unique partnership structure.
Mesa PAC has also been involved in the promotion of Corporate America’s competitiveness and shareholder democracy. . .It supports candidates who have fought for shareholder rights.
What it all comes down to is that political involvement is absolutely necessary. . .We must look after our interests, because politics affect the company, which impacts employees and shareholders.
Since most of you are shareholders as well as employees, your future prosperity greatly depends on Mesa’s ability to influence the political process.
That is why we’re asking you to contribute to Mesa PAC.
Donations are relatively painless. . .you can have a small amount withheld from each paycheck.
I give the maximum allowable. . .our officers as a group give more than 2% of their income.
The limit any one person can give is $5,000. . .this causes a problem.
There’s a $25,000 maximum for federal races. . .I do this.
You should all have received Mesa PAC brochures and forms. . .we have more here if you need one.
For those of you who are already donating to Mesa PAC, I’d like to point out that filling out a new form supercedes your current withholdings. . .money won’t be taken out twice if, for instance, you had four months left on your last pledge.
[Handwritten addition: Fill out a new form & acctg will be sure you aren’t being charged twice-This is an important point.]
Another important point is that you do have a say in how the donations are distributed. . .Mesa has a standing committee that
chooses recipients, and it considers all suggestions:
—A list of recipients is available for anyone who is interested.
Last year, 263 employees and 414 outside people donated to Mesa PAC, which distributed $87,000. . .a nice improvement over 1986’s $80,000.
We were pleased to have 43% of our employees contributing last year. . .But with the importance of this year’s presidential elections and consideration of industry deregulation, there’s room for more employee participation.
As an investment in Mesa’s and your future, I ask that you consider giving whatever support you can to Mesa PAC.
As a team, we can have a significant impact on our future success.
That’s what makes America great. . .The PEOPLE decide how the country is governed.
You read about the uprisings all over the world. . .what they’re all about is people trying to get what we’ve had for over two centuries; democracy.
No matter what your political beliefs, you must exercise your rights as free citizens. . .vote, and keep track of your representatives.
You can bet Bea and I will be heard between now and November. . .With your contributions, Mesa PAC can do a lot of talking for you.
Thank you. I’ve got a few (5) minutes to answer questions.
Now Dr. Jared Hazleton, our Vice President of Economics, will give you a run-down on this year’s United Way drive.