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API on oil and gas industry taxes

On 7th November, API President and CEO Jack Gerard announced a new advertising campaign to encourage lawmakers on the Joint Select Committee on Deficit Reduction to continue to focus on job creation and revenues on the government through economic growth rather than punitive tax increases.

‘We want to take every opportunity to reinforce that the oil and natural gas industry represents a big part of the solution to the issues the Super Committee is addressing,’ said Gerard. ‘We’re one of the few industries that has created jobs throughout the recession, generates approximately US$ 86 million per day in federal revenue and could do much more of both with the right policies.’

In 2010, oil and natural gas companies directly contributed more than US$ 470 billion to the US economy in spending, wages and dividends, or more than half the size of the 2009 federal stimulus package. Gerard said that this industry provided stimulus ‘happens every year without an Act of Congress and at no cost to taxpayers. Again, the kinds of activity our government should be encouraging.’

‘Unfortunately, we continue to hear suggestions from some in Congress and elsewhere that our industry should be singled out for tax increases. This makes no sense.’

‘Raising taxes only on oil and natural gas companies is not a serious strategy to deal with deficits or a slow economy. In fact, over the longer term, higher taxes would actually mean less revenue to the government because development and production would be reduced, which would reduce taxable incomes and royalties while increasing our reliance on imported energy.’

‘We have been delivering these messages all year through a comprehensive advocacy and communications campaign. As a next step we’ll begin running a new ad campaign, starting tomorrow, that recognises some of the Super Committee members who have opposed efforts to raise energy taxes.’

The new advertisements will begin running on 8th November and are available here: http://www.youtube.com/user/energy

‘We’re ready to do our part,’ said Gerard. ‘When Congress is prepared to address comprehensive tax reform, our member companies are prepared to be constructive partners in finding solution that will treat all businesses fairly while providing opportunity to remain competitive.’

Published on 10/11/2011


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