WASHINGTON, February 13, 2012 – In remarks to reporters this morning, Jack Gerard, President and CEO of the American Petroleum Institute, expressed disappointment with the proposed tax increases on the oil and natural gas industry in the administration’s 2013 budget plan, especially in light of the president’s seeming endorsement of more domestic oil and natural gas development in his state of the union address last month:
“The president’s 2013 budget plan returns to the well of bad ideas and backtracks on his state of the union commitment. Instead of advancing constructive pro-development policies, his budget plan calls for increased taxes on America’s oil and natural gas industry.
“Increasing our taxes would push oil and natural gas investment overseas and diminish job-creation and economic activity here at home. After a handful of years, we would see less domestic energy production – particularly of natural gas – more imports, fewer new jobs, and, eventually, depressed tax, royalty and other revenues.
“Frankly, the administration should be trying to replicate the success America’s oil and natural gas industry has had in creating jobs and growing the economy primarily through development on private and state lands. The evidence clearly shows that what we’re doing is working.
“If the industry’s job-creating investments are a stimulus for the nation, then what the administration is proposing is an anti-stimulus. To spur new jobs, the president advocates tax breaks for everyone but the oil and gas industry – the one sector with the proven ability to create jobs and already supporting 9.2 million of them.”
API represents more than 490 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.