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  • Energy Tax Facts
  • 23 Sep 21

The Center Square: Texas upstream oil and gas sector adds jobs, threatened by proposed natural gas tax association argues

“Oil and natural gas demand is poised to surge over the next 6-12 months,” Ed Longanecker, president of TIPRO, said in a statement. “Bullish fundamentals set up oil prices and the industry for strong returns over the next few years, which will have a positive impact on industry employment and economic growth for our state and country.”

Despite TIPRO’s positive outlook, these gains might be lost if a federal national energy tax in the $3.5 trillion reconciliation package before Congress were to be passed. “It could cripple small Texas oil and gas operators and severely burden American taxpayers,” TIPRO says. The proposed policy is unbalanced, TIPRO argues, because it proposes to tax primarily methane from oil and natural gas production, but doesn’t tax three of the top four methane-producing industries in the U.S.: agriculture, waste management, and coal sectors.