Cathy Landry | 202-682-8122 | landryc@api.org
WASHINGTON, January 13, 2009 – American Petroleum Institute President and CEO Jack Gerard today issued the following statement in the wake of a federal appeals court’s decision finding for Anadarko Petroleum in a case regarding royalty collection:
“The Fifth Circuit panel has unanimously affirmed that Congress, when it passed the Deepwater Royalty Relief Act, provided royalty relief, based only on a volume limitation, not price. That Act was passed at a time of historically low crude oil prices as a means to increase production and sustain jobs in a struggling industry. It was enormously successful, helping to boost deepwater Gulf of Mexico production by 50 percent in less than a decade. This production, which Congress considered would likely remain in the ground for years without the royalty relief program, helps reduce our dependence on foreign oil and keep jobs at home.
The Deepwater Royalty Relief Act is an example of constructive policy that encouraged the development of our own domestic resources and achieved the desired results by creating jobs, generating government revenues and enhancing America’s energy security. Going forward, we trust Congress will continue to pursue constructive energy policies that benefit the American people, while resisting the urge to take steps that attempt to change the rules of the game midstream and that discourage investment. The oil and natural gas industry remains highly cyclical, as demonstrated by the huge swings in prices over the past 12-15 years. Congress and the administration need to take a comprehensive, long-term approach to meeting America’s critical need for reliable, domestic energy supplies.”