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  • Energy Tax Facts
  • 9 Feb 16

U.S. Oil, Gas Producers React to Obama Budget, Tax Hikes

Statement from Barry Russell, president and CEO, Independent Petroleum Association of America (IPAA): “In the last five years, the success of America’s oil and natural gas industry has taken our nation from energy dependence and scarcity to security and abundance.  We have achieved status as a global energy leader.  Today, the United States’ energy resources are the envy of nations.

“President Obama’s budget proposal places our nation, once again, at a clear disadvantage against global oil cartels and unfriendly nations.   His proposal places a dangerous bet on unproven energy and gives the upper-hand to nations that compete against us.  And, it increases taxes not only on the industry, but also  on virtually every American.

“Instead, America’s policies should promote our abundant energy riches.  Strengthening, not degrading, American oil and natural gas production is a much better option for our country.  This budget fails to strengthen America’s global energy leadership and instead creates new, unnecessary taxes for industry and energy consumers alike.

“Unlike other energy producing countries, the U.S. oil and natural gas industry is made up of thousands of individual companies that compete here against each other but, now, are in a life and death fight against other countries, like Iran, Russia and Saudi Arabia that have government owned energy companies. Many of these countries publicly brag about trying to drive out American producers from the marketplace, drive them out of business.

“Any other country with such rich energy resources would ensure the health of this strategic asset base.   But, in this country, the President’s budget attacks the U.S. oil and natural gas industry and every American energy consumer.  And, it threatens the nation’s rank as one of the world’s energy leaders.

“A strong American oil and natural gas industry secures our place as a world leader in energy production.  It provides jobs and lower transportation costs.  Royalties and revenues from American oil and natural gas provide much-needed revenue to local, state and federal treasuries.   The use of American natural gas for electric generation has resulted in cleaner air — and, in fact, has supplied the reductions in America’s greenhouse gas emissions that are so important to President Obama’s climate agenda.

“Why would the President turn his back on these successes?  Why would he bet against the proven benefits of American-made oil and natural gas?  The new American experience of energy abundance is good for the nation.  We should utilize America’s oil and natural gas and encourage its growth.  A weak American oil and natural gas industry is a losing proposition here at home and on the global stage.”