WASHINGTON, November 17, 2011 – American Petroleum Institute Senior Tax Advisor Brian Johnson called on Congress and the Super Committee to not target the more than 9 million U.S. jobs supported by the oil and natural gas industry.
"We need to reinforce the idea that the oil and natural gas industry can be part of the solution to our national jobs crisis and deficit reduction, the exact issues Congress and the Super Committee are addressing. We're one of the few industries that have created jobs throughout the recession, and we generate about $86 million every day in federal revenue and could do much more of both with the right policies. In 2010 we directly contributed more than $470 billion to the U.S. economy in spending, wages and dividends. That's half the amount of the 2009 "stimulus" package.
"Taking aim at our cost recovery deduction, Section 199 that all U.S. manufacturers get – could decrease investment in new domestic oil and natural gas development and jeopardize 165,000 jobs by 2020 and more than 10 percent of U.S. oil and natural gas productive capacity by 2017.
"A political decision to favor one type of industry over another through our tax code, or to single out a single industry – or a handful of companies, as has been suggested for the five largest oil and natural gas producers – is not a serious tax strategy. We understand that the Super Committee is searching for ways to increase revenue, and we're open to discussing broad tax reform that preserves the cost recovery mechanisms that are part of the bedrock of a national income tax system – and critical to future investment in new production and new jobs."
API represents more than 480 oil and natural gas companies, leaders of a technology-driven industry that supplies most of America's energy, supports 9.2 million U.S. jobs and 7.7 percent of the U.S. economy, delivers more than $86 million a day in revenue to our government, and, since 2000, has invested more than $2 trillion in U.S. capital projects to advance all forms of energy, including alternatives.