The American Petroleum Institute, or API, is the largest trade association for the oil and natural gas industry in the United States. The association represents more than 600 companies operating across production, refining, distribution, and other sectors of the oil and gas industry. API defines its mission as promoting effective public policy in support of a strong, sustainable, and reliable oil and natural gas industry.
The main responsibilities of this association include industry representation, engagement with regulatory bodies, negotiation, government lobbying, legal and regulatory advocacy, economic research, environmental and toxicological studies, the development and issuance of industrial standards and certifications, and the advancement of specialized training programs.
The following text is a transcript and translation of an interview conducted by Paige Wilson, host of the “Oil and Gas Industry Leaders” podcast, with Mike Sommers. This translation is being published for the first time on the Artin Azma website.
Summary
“You have two ears and one mouth, so you should use them in that proportion.”
That is a great quote. I am a leader who truly believes in that idea: first, you need to listen, understand what the team wants to achieve, and then lead.
Here, you will hear the stories of the key players in this industry, directly from the leaders themselves. This is the “Oil and Gas Industry Leaders” podcast, where real-world experiences are passed from today’s leaders to tomorrow’s leaders. Your host is Paige Wilson.
Paige Wilson:
Welcome to another episode of the “Oil and Gas Industry Leaders” podcast. Today, I am joined by Mike Sommers, President and CEO of the American Petroleum Institute, API. Mike, how are you?
Mike Sommers:
Paige, I am very happy to be here.
Paige Wilson:
Thank you very much for joining the program. Let’s get started right away. Tell us how you entered this industry, or how your career path eventually led you here.
Mike Sommers:
I have had a very good career path. I actually started my career on Capitol Hill. I worked for about 20 years in the U.S. Congress, for a young congressman named John Boehner, who later became Speaker of the House of Representatives. I served as his Chief of Staff.
Paige Wilson:
That is great.
Mike Sommers:
In 2005, I was asked to join the White House during the Bush administration. I had a very good year at the White House. Then Boehner was elected House Majority Leader, and he asked me to return and become his policy director. So I became the policy director for the Majority Leader. After that, we spent four years in the minority. Then I became Chief of Staff to the Speaker of the House. That was certainly one of the greatest honors of my life.
Paige Wilson:
What made you enter the oil and gas industry? How exactly did you get here?
Mike Sommers:
When I left Congress, it was around the time Mr. Boehner stepped down in 2015. I was the last person to turn off the lights. I loved that job. As I said, serving the United States and Mr. Boehner in that role was one of the greatest honors of my life.
After that, I was recruited to lead another trade association in the financial services industry.
Paige Wilson:
Really? That is completely different.
Mike Sommers:
Yes. Then, in 2018, API contacted me and asked me to interview for this position. When they asked me to interview, I did not think I would actually get the job. But throughout the process, I made the argument that this industry is the most important and essential industry in the world. In addition, I said that the American Petroleum Institute, as the main trade association of this industry, is the most important trade association in Washington, D.C.
I wanted to make an impact on an industry that I truly care about. When they asked me to take on this responsibility, I knew they were looking for change within the organization. They wanted to change the way they thought about advocacy and defending the industry. When this opportunity was offered to me, I accepted it with enthusiasm.
Paige Wilson:
I think everyone has heard the name API, but do they really know what API is? They have heard the name, but what exactly is the American Petroleum Institute?
Mike Sommers:
Let me start by saying that we were founded in 1919. In fact, we originally began as a standards-setting organization. The story was that there were two pipelines in the state of California that were not compatible with each other. The industry came together and realized that it truly needed a standards body.
Then they also realized that they needed an advocacy organization, one that could defend their interests, especially in the area of tax policy. So in 1919, they came together and established this organization. Our roots are still there. We are still the global standards setter for the oil and gas industry, not only in the United States, but around the world.
Our headquarters is here in Washington, D.C., where I am based. But we also have an office in Houston, with about 15 people. We also have regional offices in eight different regions across the United States, where advocacy and policy work is carried out. In addition, we have three offices outside the United States that offer API standards and certifications in international markets. We are present in Dubai, Rio, and Beijing. This presence truly gives us a global footprint.
This is the core of what we do: developing standards for safety, environmental performance, and workforce protection in our industry.
Paige Wilson:
Yes, and that was something I learned very quickly after the Macondo incident: that you step in with your guidelines and recommended practices.
Mike Sommers:
That is exactly right. We still operate the Center for Offshore Safety from our Houston office. Its purpose is really to raise standards and ensure that safety and best practices are followed in offshore operations. We now apply this approach onshore as well. We also operate an onshore safety alliance to make sure that every part of the industry operates as safely as possible.
Paige Wilson:
I have a question. There is API in Washington, D.C., and then you also have chapters. What is the difference between the two?
Mike Sommers:
Those chapters actually operate completely independently. We work closely with them. For example, we have a large chapter in Houston, where I know Mark and you have spoken over time. It is a very strong chapter and an important part of the organization’s legacy. We are proud to work with them. They use our logo, and we support many of their events, but organizationally they are independent from us.
Paige Wilson:
Yes, I wanted to make that clear for everyone, because I did not know this for a long time myself. I really thought they were the same thing. Very good, excellent.
Leadership from Mike Sommers’ Perspective
Paige Wilson:
Now let’s move on to the topic of leadership. Mike, what does leadership mean to you? It is interesting because you have seen it in politics, in the financial industry, and now in oil and gas.
Mike Sommers:
I truly believe that politics is about bringing a group of people together to do things collectively; things that individuals cannot accomplish on their own. A leader does exactly the same thing: brings groups together and makes sure they can collectively move their goals forward.
In my view, this perspective applies very well to the oil and gas industry and to the American Petroleum Institute. It was also the main focus of my work in Congress: how to bring together, at that time, 218 House Republicans to vote the right way and move an agenda forward.
My former boss, Mr. Boehner, always used to say that this work is like trying to keep all the frogs inside a wheelbarrow.
For me, when I first came to API, one of the things we did was develop the API Principles. There are ten principles about how we work with our major members and how we treat one another within the organization.
Another important issue is how to create a sense of purpose in people’s work. For me, this is an industry that has done more for humanity than any other industry in history. That is our purpose. We are a purpose-driven organization, and we know that everything we do is aimed at strengthening the greatest industry in the world; the greatest industry the world has ever seen. And we do this on behalf of our members.
I often say, Paige, that if API did not exist, the industry would have had to create API. We are as much a part of this industry as someone working in the Permian Basin or someone working in Alaska. We are truly part of the industry we serve.
Paige Wilson:
Absolutely. Just imagine if everyone wanted to debate what API should really be!
Mike Sommers:
Exactly. If everything had been left to the major companies, we would probably only be starting today, while we actually began in 1919. Still, I feel that we are still behind when it comes to advocating for our own industry.
The reality is that we do a great deal of advocacy and policy work.
Paige Wilson:
Yes, I have seen that.
Mike Sommers:
One of the things we work very hard on is advancing the mission of the industry and, of course, defending the interests of the entire industry. We conduct a lot of polling. Your listeners may not know that this industry is currently a relatively popular industry.
We are more popular than the technology industry, more popular than the financial industry, and certainly more popular than the pharmaceutical industry. The American people have come to understand how important this industry is for consumers’ cost of living, as well as for America’s energy security and independence. It is a great opportunity to be able to represent such an industry in Washington and across the states.
The Most Difficult Leadership Experiences
Paige Wilson:
Absolutely. Now let’s go back to the topic of leadership. What is an example of a difficult experience you have had as a leader?
Mike Sommers:
I thought about this question. When you face difficult situations as a leader, it is truly a major challenge. One of the things I have learned is that when you are dealing with people, there is no interest quite like self-interest.
Paige Wilson:
Wow, that is so true.
Mike Sommers:
Especially when you work in a place like the U.S. House of Representatives, you see this reality very clearly. Over the years, there were major bills that had to be passed. Many representatives knew that what they were about to vote for was right and necessary for the country; but at the same time, they knew that explaining that decision to voters in their districts would not be easy.
For example, in 2008, during the development of the Troubled Asset Relief Program, or TARP, we all knew that the U.S. economy needed this action. When Ben Bernanke, then Chairman of the Federal Reserve, came into the meeting with concern, and even with a trembling voice, warning that the country’s financial system was on the verge of collapse, there was no longer any doubt that immediate action was necessary.
However, passing that legislation required several rounds of voting before enough votes were finally secured.
Another example was the “fiscal cliff” crisis in 2012, when the Bush-era tax cuts were about to expire. Interestingly, Congress did not act until those tax cuts had actually expired. In other words, people’s taxes first went up, and then Congress stepped in and passed a solution.
These experiences taught me that a leader must be able to show people that taking a certain action is ultimately in their own interest as well. Sometimes people need to move beyond their short-term interests and put the interests of the country first. But getting to that point is one of the most difficult parts of leadership.
Paige Wilson:
Given what is happening in the U.S. government these days, this is completely understandable. Maybe now is exactly the time for everyone to move beyond their differences.
Mike Sommers:
That is exactly right.
The Greatest Professional Satisfaction
Paige Wilson:
Among all your management experiences, what has brought you the greatest satisfaction?
Mike Sommers:
If I speak about my time at API, I would say that I have traveled to almost every major oil city in the United States.
When I entered this industry, I had no background in oil and gas. For that reason, they sent me to different oil and gas production regions for about six months so I could see the industry up close.
From Deadhorse in northern Alaska to Midland and Odessa in Texas, Houma in Louisiana, and of course, frequent trips to Houston.
Just last week, I also had the opportunity to visit Titusville, Pennsylvania, the place where the modern oil industry began in 1859 with the first commercial oil well.
Interestingly, in 1934, that site was at risk of being destroyed, and API stepped in. To protect it, API built a protective barrier along the river and established the industry’s first museum there.
This shows that API has stood alongside the oil industry from the very beginning of its history.
But if I had to say what the greatest reward of my work is, the answer is simple: meeting the men and women who keep this industry alive every day.
These people are truly patriotic. They love their country, and they believe that the oil industry has provided great service to America.
It is a great honor for me to meet these people every day; people whose efforts drive the greatest industry in the world.
Without the innovation and technology of this industry, the world today would be a completely different place.
Paige Wilson:
I completely agree. I am also the fourth generation of a family involved in the oil and gas industry, and I am truly proud of that.
Mike Sommers:
That is exactly the feeling I see every day in this industry.
Around 11 million people in the United States are directly or indirectly employed by the oil and gas industry, and almost all of them take pride in the work they do.
The Best Advice in Life
Paige Wilson:
If you had only one piece of advice for our listeners, what would it be? Our audience is very diverse; from people with no connection to oil and gas to company CEOs.
Mike Sommers:
The best advice I have ever received in life came from my father.
He is still alive and lives with my mother near Washington so they can be close to their grandchildren.
Since I was a teenager, every time I went out on Friday nights, he would say only one sentence to me:
“Remember who you are.”
That sentence has stayed with me throughout my entire life.
He did not simply mean that I should not forget my name; what he meant was:
Stay true to the values you were raised with.
Do not forget the people who raised you.
Do not forget your roots.
That advice still helps me every day at work.
But he also had another important piece of advice that he would sometimes repeat:
“You have two ears and one mouth, so you should use them in that proportion.”
I deeply believe in that.
First, you have to listen. You need to understand what the members of the team think, what they want to achieve, and then guide them.
Paige Wilson:
That is interesting. When I entered the industry, my father gave me only one piece of advice too. He said, “Talk less, keep your head down, and learn.” And now I have become a podcast host!
Mike Sommers:
I think you did exactly the opposite of your father’s advice!
A Book on Leadership
Paige Wilson:
Is there a book that has had a deep impact on your life or your leadership style?
Mike Sommers:
Yes. About thirty years ago, I read a book called The Killer Angels by Michael Shaara.
It is a historical novel about the Battle of Gettysburg, and it won the Pulitzer Prize about fifty years ago.
In fact, last week I took the entire API management team to Gettysburg. Before the trip, reading this book was mandatory for everyone.
Why?
Because the book is full of valuable lessons about leadership:
● The importance of decision-making in times of crisis
● The need for clarity in command
● The responsibility of a leader when making difficult decisions
That is why I recommend it to everyone.
Paige Wilson:
Now I need to convince Mark that we should also go on a training retreat to Gettysburg! I love history.
Mike Sommers:
Gettysburg is only about two hours from Washington, and it is truly an extraordinary place.
When you stand there, you feel the weight of history.
I actually consider the American Civil War to be the country’s second war of independence, because that war determined whether America would truly remain faithful to the ideals it had promised in the Declaration of Independence.
And the famous Gettysburg Address was where Abraham Lincoln found his historic voice.
Paige Wilson:
That is why studying history is important: so we do not repeat the mistakes of the past.
Mike Sommers:
Of course, the problem is that the only thing we learn from history is that usually no one learns from history!
The Most Important Leadership Tool
Paige Wilson:
What is the tool you use most in business?
Mike Sommers:
If I had to name only one tool, that tool would be “purpose.”
In my view, the most important responsibility of a leader is to remind employees every day why they are here and why they do the work they do.
Many people talk about “what to do” or “how to do it,” but the main question is always:
“Why?”
If people find the “why” behind their work, they become motivated to perform beyond expectations.
That is why, when we developed the “10 API Principles,” we wrote an introduction before all of them, beginning with this sentence:
“We are problem solvers; people who solve the world’s greatest energy challenges.”
That is exactly what we do every day at API, and the oil and gas industry carries the same mission.
This industry is full of people who love solving problems.
That is why I believe the most important responsibility of a leader is to give people a sense of meaning and purpose.
Respecting a Competitor
Paige Wilson:
The next question may be a little difficult. Which competitor do you respect the most?
Mike Sommers:
That is an interesting question.
We are one of the largest industry associations in the world, with a budget of around $275 million, much of which is spent on developing safety and environmental standards.
In reality, our main competitors are not other companies; they are those who oppose the American oil and gas industry.
However, if I had to name someone whom I respect greatly despite our differences, it would be Ro Khanna, a member of Congress from California. He represents the Silicon Valley area.
I have testified before him in congressional hearings many times and debated with him. We disagree on almost 99 percent of issues, but his important quality is that he is honest and authentic.
I think what the American people want today, more than anything else, is leaders who act with honesty and authenticity. We can disagree with one another without becoming enemies. That is why I have great respect for him.
Paige Wilson:
Personally, I love listening to Senator John Kennedy; I just enjoy hearing him speak!
Mike Sommers:
That is the unique style of people from Louisiana!
The Advantage of the Oil and Gas Industry
Paige Wilson:
What makes you better than your competitors?
Mike Sommers:
Our greatest advantage is the people of this industry themselves. The oil and gas industry rests on the shoulders of 11 million of the hardest-working and most patriotic people in America. These people work every day to provide the energy the country needs and to make everyday life possible.
For me, it is a great honor to represent such an industry. I always tell the employees of API:
If the oil and gas industry did not exist, no other industry could exist either.
We are the industry on which all other industries are built.
The Culture of the Oil and Gas Industry
Paige Wilson:
What is the most important lesson you have learned over these years?
Mike Sommers:
The most important thing I have learned is the culture of this industry.
Before coming to API, I worked in the financial services industry and traveled to New York regularly.
I always joke that in that industry, almost every day you had to deal with someone who was rude and self-centered!
But during my eight years at API, almost everyone I have met in the oil and gas industry has been honest, kind, and committed to doing the right thing for their country.
For me, the most valuable part of this work has been getting out of the closed environment of Washington and New York and meeting the real people of this industry.
I am traveling almost every week. Tomorrow I am going to Houston again, and next week I will be heading to Abu Dhabi to attend ADIPEC. This industry always promises less than it delivers, and delivers more than it promises.
Paige Wilson:
Many people do not understand this until they enter the industry.
For example, when you arrive in Midland in the intense heat of August, or go to Alaska in the cold of winter and see people working to build ice roads, you truly understand the enormous effort these people make.
Mike Sommers:
Exactly.
That is why I travel almost every week. And it is not just because of my job responsibilities. My father used to say something I will never forget:
“If you want to get ahead in life, you have to work half a day; it does not matter whether it is the first twelve hours or the second twelve hours!”
That means you have to be ready to work long hours with commitment. In my view, the oil industry has exactly that culture.
Paige Wilson:
We work these long hours so that all other industries can continue operating.
Mike Sommers:
Exactly.
Mike then shares a memory from his first appearance at API’s annual meeting:
“In 2018, it was the first time I was speaking at the API Annual Meeting as CEO. The Chairman of API at the time was Darren Woods, Chairman and CEO of ExxonMobil. After I finished my speech, I quickly came down from the stage to shake his hand. I thought he was going to say, ‘Mike, that was a great speech.’
But he pulled me close and said only one sentence: ‘Next time you come down the stairs, make sure you use the handrail.’”
That one sentence shows how deeply rooted the safety culture is in this industry; not only at ExxonMobil, but across all API member companies. For them, the most important responsibility is protecting the health and safety of employees.
Paige Wilson:
I have the same habit too, even when I am not at work.
Mike Sommers:
That is the culture this industry creates; safety becomes part of a person’s character.
API’s Role in the Future of the Industry
Paige Wilson:
Given the position you hold, what is your role in the future of the industry?
Mike Sommers:
API was founded in 1919, and I am the fifteenth CEO of this organization in more than a century of its existence. I do not see myself as the owner of this organization; I see myself only as its steward. My responsibility is to preserve this legacy during one of the most critical periods in the history of the industry.
My first responsibility is to preserve API standards; the more than 800 technical, safety, and operational standards that form the backbone of this industry. But our second responsibility is to defend the industry in the arena of public policy.
When they hired me, they knew I did not come from the oil industry. But they believed they could teach me oil and gas. What they could not teach an oil expert was how Washington works. They needed someone who understood the mechanisms of American politics and lawmaking very well.
That is why today, we work every day both to improve global safety in the industry and to advance policies that help the American oil and gas industry grow.
A major part of our work is developing expert comments on new regulations and defending the interests of the industry in the field of policymaking.
Last year, before the U.S. presidential election, API published a document titled “API’s Five-Point Policy Roadmap.” In that document, we stated that regardless of who became president, there were five actions necessary to strengthen America’s energy security and reduce inflation.
Looking at it today, we are pleased that the administration and Congress have so far achieved four of those five goals. But one very important issue still remains: reforming the permitting system.
If America wants to build major infrastructure again, develop pipelines, or expand energy projects, the permitting process must become simpler, faster, and more predictable.
Paige Wilson:
What exactly do you mean by permitting reform?
Mike Sommers:
We have launched a dedicated website for this issue and presented twelve specific recommendations. One of the most important is reforming NEPA, the National Environmental Policy Act. It also includes reforming parts of the Clean Water Act and, most importantly, reforming the judicial review process.
The main problem for API member companies is not that they cannot obtain permits. The problem is that after receiving permits, projects are stopped for years in courts and through various lawsuits. Different environmental groups file lawsuits again and again, and a project that has received all legal permits can be delayed for years. That is why judicial reform must also be part of permitting reform.
Telling the Oil Industry’s Story to the Public
Paige Wilson:
If you wanted to explain the oil and gas industry to someone who knows nothing about it, where would you begin?
Mike Sommers:
I would start with people, not statistics.
Opponents of the oil industry usually work through emotional narratives; they tell the stories of people who have been affected by an accident or a project. We also need to tell stories.
We have very strong statistics and data, and in almost every debate, we can defend our positions with numbers and evidence. But people are not persuaded by statistics alone; they connect with stories. That is why almost all of my speeches begin with a real story.
For example, I talk about a young woman who graduated from a community college in Pennsylvania in welding and now earns more than $100,000 a year in the oil and gas industry. That training program was supported by the oil industry, and it completely changed her life. There are examples like this all across America.
Or you only need to compare two neighboring regions:
In Pennsylvania, where shale resources have been developed, you see employment and economic prosperity. But just across the border, in New York, where the same geological formation exists but has not been developed, that prosperity is not present.
This industry truly changes people’s lives, and we need to tell these stories more often.
Paige Wilson:
Without the oil industry, even this conversation we are having today would not be possible.
Mike Sommers:
Exactly.
Podcasts and the Series Landman
Paige Wilson:
What is your favorite podcast?
Mike Sommers:
Well, first of all, your podcast!
But in addition to that, I regularly listen to Ruthless, which is about politics, and Breaking History, which focuses on historical topics.
The conversation then turns to the series Landman.
About a year and a half ago, we heard that this series was going to be made.
I like Taylor Sheridan’s work, but I was concerned about how the series would portray the oil industry. So I told API’s media team that we needed to be part of this project. Today, API is the largest advertiser for the first season of this series.
If you do not watch the ad-free version, you will see API advertisements between episodes of the series. All of these advertisements are about safety in the oil industry. In my view, the series presents a positive image of the industry, but there is some exaggeration and Hollywood drama when it comes to safety culture. That is why we are continuing our cooperation in the new season as well, so that people can see a more realistic image of the industry.
Paige Wilson:
Of course, to make the series interesting, a little exaggeration is necessary!
Mike Sommers:
That is true.
But the reality is that no industry invests in safety as much as oil and gas.
Anyone who wants to go onto an offshore platform has to go through very strict training.
Paige Wilson:
I would never be willing to go through that training where they flip you upside down in the water!
Mike Sommers:
That is completely understandable!
At the end, the host asks him how people can stay connected with API.
Mike Sommers:
The easiest way is to visit the API website.
We represent more than 600 member companies, and every day we work on two main missions:
First, improving safety in the oil and gas industry.
Second, advancing policies that help develop America’s energy industry.