Senate proposal comes at worst time for consumers - API

WASHINGTON, March 12, 2008. – API issued the following statement on Sen. Collins’ amendment to fund alternative energy with higher taxes on the U.S. oil and natural gas industry:

“With oil prices rising above $110 a barrel, Sen. Collins’ suggestion to pay for alternative fuel development by targeting the U.S. oil and natural gas industry could not come at a worse time for consumers. The bill would do nothing to alleviate the tight global crude oil supply-demand balance that contributes to high prices. Rather than encouraging new domestic oil and natural gas production, Sen. Collins’ proposal would further reduce our energy security by diverting money that could otherwise be used to make the substantial investments required to increase domestic oil and natural gas production. If adopted, the proposal would threaten U.S. jobs and penalize the millions of retirees and workers whose pension funds, IRAs and 401ks are invested in oil and natural gas company stock.

“Consumers would be adversely affected by tax policies that contribute to an already volatile  energy market in which oil prices have been driven higher by strong global demand, a weak U.S. dollar, tight spare production capacity, and rising geopolitical tensions.”