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  • Energy Tax Facts
  • 5 Oct 21

TribLive: Punitive natural gas tax risks U.S. energy leadership, economic recovery

By Stephanie Catarino Wissman, executive director of the American Petroleum Institute Pennsylvania

As Congress continues to craft a sweeping budget reconciliation bill, provisions within the package threaten to undermine American energy leadership and could potentially lead to higher costs. And few places will feel the pinch like Pennsylvania, the second-largest producer of natural gas in the country, with nearly 500,000 jobs supported by the natural gas and oil industry, and a top-10 energy consumer.

Included in the $3.5 trillion bill is a proposed methane fee that would impose a punitive tax on all aspects of the natural gas supply chain while exempting all other major sources of methane like agriculture and waste management operations. Targeting natural gas and oil, which account for nearly 70% of energy consumption, with higher taxes to pay for trillions in spending will slow new energy investment and production and drive up costs for consumers at a time when inflation is on the rise. The tax could have a $9.1 billion negative impact to the U.S. GDP and cost up to 90,000 jobs.