WASHINGTON, November 9, 2012 – The SEC has denied API’s request to stay a rule to implement Section 1504 of Dodd-Frank , which is already imposing massive compliance costs and competitive harm on U.S. oil and gas companies:
“The oil and natural gas industry strongly supports payment transparency,” said API Director of Federal Relations Justin Spickard. “We’ve been working hard to increase transparency for a decade, but this rule could interfere with ongoing efforts by making U.S. firms less competitive against state owned firms in China and Russia that have no interest in transparency.”
Spickard said the industry is working with civil society groups and the Obama administration to implement the Extractive Industries Transparency Initiative (EITI), a program that would more effectively increase transparency without harming competitiveness. The initiative has already been established in 36 countries and continues to grow.
“The rule as written would impose enormous costs on U.S. firms and put them at a competitive disadvantage against government-owned oil giants not subject to the rule,” Spickard said. “These SEC can achieve its goal of transparency, but it chose a path that will do so in a way that compromises proprietary information of U.S. firms. Not only will the rule hurt the millions of Americans who own shares in oil and natural gas companies, it will also cost jobs and damage America’s energy security by making it more difficult for U.S. firms to gain access to resources abroad.”
API is a national trade association that represents all segments of America’s technology-driven oil and natural gas industry. Its more than 500 members – including large integrated companies, exploration and production, refining, marketing, pipeline, and marine businesses, and service and supply firms – provide most of the nation’s energy. The industry also supports 9.2 million U.S. jobs and 7.7 percent of the U.S. economy, delivers $86 million a day in revenue to our government, and, since 2000, has invested over $2 trillion in U.S. capital projects to advance all forms of energy, including alternatives.