API: Inflation Reduction Act Falls Short of Addressing U.S. Long-Term Energy Needs
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WASHINGTON, August 16, 2022 — American Petroleum Institute (API) President and CEO Mike Sommers today issued the following statement after President Biden signed into law the Inflation Reduction Act (IRA):
“While the Inflation Reduction Act takes important steps toward new oil and gas leasing and investments in carbon capture and storage, it falls well short of addressing America’s long-term energy needs and further discourages needed investment in oil and gas. API shares the goal of addressing climate change, as evidenced in the policies we support and in the actions that our industry is taking every day. However, the considerable tax increases are simply the wrong policies at the wrong time. From a new corporate minimum tax to an $11.7 billion tax on crude oil and petroleum products to a new natural gas tax, this legislation imposes additional costs on American families and businesses at a time when policymakers should be looking for solutions to provide relief.
“The bill also fails to address permitting reform, which is essential to effectively delivering affordable, reliable energy to consumers in a growing economy.
“Without a comprehensive plan for critical investment in American oil and natural gas and associated infrastructure, which provide nearly 70% of our country’s energy needs, the American people will continue to bear the brunt of short-sighted policies in Washington.”
Last week, API joined with nearly 60 other trade groups representing America’s natural gas and oil industry in sending a letter to House Speaker Nancy Pelosi and Minority Leader Kevin McCarthy urging them to reconsider problematic policies within the legislation that undermine the industry’s ability to promote energy security for the American consumer.
API represents all segments of America’s natural gas and oil industry, which supports more than 11 million U.S. jobs and is backed by a growing grassroots movement of millions of Americans. Our approximately 600 members produce, process and distribute the majority of the nation’s energy, and participate in API Energy Excellence®, which is accelerating environmental and safety progress by fostering new technologies and transparent reporting. API was formed in 1919 as a standards-setting organization and has developed more than 800 standards to enhance operational and environmental safety, efficiency and sustainability.