Tax Policy

The U.S. oil and natural gas industry is a cornerstone of the American economy—supporting nearly 11 million jobs, contributing almost $2.1 trillion annually to GDP, and generating billions in tax revenues at the federal, state, and local levels. These revenues fund essential public services, from schools and roads to conservation programs that protect our natural resources. Importantly, the industry does not receive preferential or favorable treatment under the tax code; it operates under similar rules that apply broadly to U.S. businesses, while shouldering some of the largest absolute tax contributions of any sector.

A stable and competitive tax framework is vital to sustaining this economic engine. Tax policies that foster investment and innovation enable U.S. companies to develop resources responsibly, expand domestic production, and strengthen America’s position as a global energy leader. Conversely, punitive or unpredictable tax measures risk undermining investment, slowing job growth, and jeopardizing long-term energy security.

API advocates for sound tax policy that enhances the global competitiveness of the U.S. oil and natural gas industry. By maintaining a fair, predictable system, the U.S. can unlock the full economic and energy potential of its abundant resources—delivering benefits for workers, consumers, and communities nationwide.