API looks to work with regulator as it implements financial reform

WASHINGTON, July 15, 2010 — The financial reform bill, passed today in the Senate, while an improvement over earlier versions, still remains problematic, according to a statement by Misty McGowan, a director in the American Petroleum Institute’s federal relations department.

“API will look to work with the Security and Exchange Commission as it promulgates regulations to implement the financial reform bill, which passed the Senate today.

“The final bill, while significantly improved from earlier versions, still contains several provisions that could harm American oil and natural gas companies and create additional unemployment.

“In particular, API is concerned by a provision that requires all SEC-listed companies to report detailed information about the payments they make to foreign governments regarding the development of oil, natural gas and minerals.

“While API supports efforts to improve transparency in revenue payments, including the World Bank-backed Extractive Industries Transparency Initiative, this legislation’s unilateral approach would give foreign oil and natural gas companies access to confidential, proprietary information that they could use against U.S. firms when competing for contracts for crucial energy resources around the globe.

“API also hopes the SEC works to maintain the integrity of energy markets as it implements the bill as it pertains to derivatives.”

Updated: July 29, 2010