WASHINGTON, December 16, 2010 – The U.S. Securities and Exchange Commission (SEC) proposed rules late yesterday on Section 1504 of the Dodd-Frank Wall Street Reform and Consumer Protection Act that could put the proprietary information of U.S.-listed companies at risk to many foreign and state-owned companies.
The statute requires U.S.-listed companies to report detailed, project-level information about payments made to foreign governments. It does not impose the same requirement on all foreign oil companies, like China National Petroleum Company and Gazprom.
“This unilateral approach to revenue disclosure would give foreign oil and natural gas companies access to confidential, proprietary information that they could use against U.S.-listed companies when competing for crucial energy resources around the globe,” said Misty McGowen, a director in API’s office of federal relations.
“API supports the World Bank-backed Extractive Industries Transparency Initiative approach, which encourages disclosure by all oil and natural gas companies of payments made to foreign governments,” McGowen said.
“API will continue to work with the SEC on the anti-competitive aspects of this statute as it finalizes the rule and will submit comments,” McGowen said.
API represents more than 450 oil and natural gas companies, leaders of a technology-driven industry that supplies most of America’s energy, supports more than 9.2 million U.S. jobs and 7.5 percent of the U.S. economy, and, since 2000, has invested nearly $2 trillion in U.S. capital projects to advance all forms of energy, including alternatives.
Updated: December 16, 2010