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API: Studies 'Show a Path to Job Growth and More Government Revenue'
Three statements from API President and CEO Jack Gerard in:
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(84 seconds total)
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Increased access to domestic oil and natural gas--rather than increased taxes on the U.S. oil and natural gas industry--is the best strategy for increasing government revenue, jobs, and energy production, a recent study by Wood Mackenzie concludes.
Increased access could (by 2025) create 530,000 jobs; deliver $150-billion more in tax, royalty, and other revenue to the government; and boost domestic production by four-million barrels of oil-equivalent a day--according to the API-sponsored study, "Energy Policy at a Crossroads: An Assessment of the Impacts of Increased Access versus Higher Taxes on U.S. Oil and Natural Gas Production, Government Revenue, and Employment". Raising taxes on the industry, with no increase in access, could reduce domestic production by 700,000 barrels of oil-equivalent a day (in 2020); sacrifice as many as 170,000 jobs (in 2014); and reduce revenue to the government by billions of dollars annually. An additional 1.7-million barrels of oil-equivalent a day in potential production that is currently of marginal economic feasibility would be at greater risk of not being developed, under the modeled tax increase.
On access, the study assumes that the Eastern Gulf of Mexico, portions of the Rocky Mountains, the Arctic National Wildlife Refuge, and the Atlantic and Pacific Outer Continental Shelf would be opened to development. On taxes, it assumes a $5-billion increase in annual taxes on the industry--which is less than the amount considered last year (2010) by the U.S. Congress and the Obama administration.
API has also issued a "State of American Energy" report--which analyzes the U.S. oil and natural gas industry's role in building a stronger economic and energy future for our nation, through safe and reliable production of domestic energy resources. It shows that the industry can do much more to help with economic recovery, job growth, and increased revenues to the government. The findings in the report complement the Wood Mackenzie study, and note the critical importance of sound energy policy to achieving the benefits of expanded energy development.
