API's Gerard sees oil, gas role in post-election fiscal debates

The US oil and gas industry potentially could make a significant positive contribution to federal fiscal negotiations if the administration of reelected President Barack Obama adopts sensible policies, according to American Petroleum Institute Pres. Jack N. Gerard.

The industry still strongly opposes punitive legislative proposals, but would eagerly join discussions where all special tax provisions are on the table to possibly reduce the corporate tax rate, Gerard told reporters during a Nov. 8 teleconference.

“Independent analysis shows this industry could generate billions of dollars of additional federal, state, and local government revenue,” Gerard said. “A recent IHS report suggests it could be trillions. Allowing us to do what we do best will not only lead to thousands or hundreds-of-thousands of new jobs, but also would generate billions or trillions of dollars in new revenue.”

His observation came one day after US House Speaker John A. Boehner (R-Ohio) said results of the Nov. 6 elections show voters want more cooperation than confrontation from federal lawmakers.

“There is an alternative to going over the fiscal cliff, in whole or in part,” Boehner said on Nov. 7. “It involves making real changes to the financial structure of entitlement programs, and reforming our tax code to curb special interest loopholes and deductions.

“By working together and creating a fairer, simpler, cleaner tax code, we can give our country a stronger, healthier economy,” he maintained.

Revenue generator

The federal government already receives $83 billion/day in revenue from oil and gas development and production on public acreage onshore and offshore, Gerard noted. “If policymakers want to look at a positive revenue source, they only have to look at oil and gas production on federal land,” he said. “That’s a contrast with proposals to increase taxes on our industry.”

Gerard said he does not expect a comprehensive federal tax reform conversation to occur before 2013, and that it possibly will extend into 2014. How Congress and the administration grapple with ways to avoid budget sequestration and its potential disruptions on Jan. 1 will be the primary focus in the next few weeks, Gerard said.

“We are willing to have a conversation with everyone around the table about how to bring the corporate tax rate down, and discuss the provisions we have,” he said. “We oppose proposals directed at our industry which would raise taxes and increase costs. The oil and gas industry should not be singled out for punitive treatment.”

The administration could take immediate steps in the meantime to illustrate that it truly supports more domestic oil and gas development as part of its overall energy strategy, Gerard continued.

He said these might include expedited approval of the Keystone XL crude oil pipeline project; taking a closer look at how states already regulate oil and gas activity before imposing duplicative, redundant rules; and reexamining 2007 Energy Independence and Security Act mandates, which clearly aren’t working.

“We are going to give the president the benefit of the doubt,” Gerard said. “He has evolved on the oil and gas issue and strongly supports more domestic production. He has said he believes it should be part of his overall energy strategy. We’ll take him at his word for now.”

Contact Nick Snow at nicks@pennwell.com.

Related Articles

House panel’s crude export ban hearing weighs urgency against caution

07/10/2015 A US House Energy and Commerce subcommittee hearing on legislation to repeal the ban on exporting US-produced crude oil quickly broke along party l...

Chevron Phillips Chemical makes executive appointments


Chevron Phillips Chemical Co. LLC has made several executive appointments, all effective Aug. 1.

Twelve workers killed in Nigeria pipeline explosion

07/10/2015 Eni SPA reported that an explosion occurred July 9 at the repair site for the Tebidaba-Clough Creek oil pipeline in Nigeria’s onshore Niger Delta.

Gov. Tomblin forms West Virginia oil, gas safety commission

07/10/2015 West Virginia Gov. Earl Ray Tomblin (D) established the oil and gas safety commission he announced in his 2015 State of the State address. The grou...

MARKET WATCH: NYMEX, Brent crude oil prices rebound more than $1/bbl

07/10/2015 Prices for US light, sweet crude oil and Brent crude each rebounded by more than $1/bbl on their respective markets July 9, and analysts attributed...

Transco seeks FERC approval for New York Bay Expansion project

07/09/2015 Transcontinental Gas Pipe Line Co. LLC (Transco), a wholly owned subsidiary of Williams Partners LP, has filed an application with the US Federal E...

House Oversight panel subpoenas Kerry for Keystone XL documents

07/09/2015 The US House Oversight and Government Reform Committee issued a subpoena to US Sec. of State John F. Kerry for reports, recommendations, letters, a...

MARKET WATCH: NYMEX crude oil prices drop for fifth consecutive trading session

07/09/2015 US light, sweet crude oil prices settled slightly lower on the New York market July 8 for the fifth consecutive trading session, and analysts attri...

Ending crude export ban would help rural US areas, House panel told

07/09/2015 Rural US communities generally have benefited from the nation’s crude oil production renaissance, and potentially could be helped more if restricti...
White Papers

UAS Integration for Infrastructure: More than Just Flying

Oil and gas companies recognize the benefits that the use of drones or unmanned aerial systems (UAS) c...

Solutions to Financial Distress Resulting from a Weak Oil and Gas Price Environment

The oil and gas industry is in the midst of a prolonged worldwide downturn in commodity prices. While ...
Sponsored by

2015 Global Engineering Information Management Solutions Competitive Strategy Innovation and Leadership Award

The Frost & Sullivan Best Practices Awards recognise companies in a variety of regional and global...
Sponsored by

Three Tips to Improve Safety in the Oil Field

Working oil fields will always be tough work with inherent risks. There’s no getting around that. Ther...
Sponsored by

Pipeline Integrity: Best Practices to Prevent, Detect, and Mitigate Commodity Releases

Commodity releases can have catastrophic consequences, so ensuring pipeline integrity is crucial for p...
Sponsored by

AVEVA’s Digital Asset Approach - Defining a new era of collaboration in capital projects and asset operations

There is constant, intensive change in the capital projects and asset life cycle management. New chall...
Sponsored by

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by

Asset Decommissioning in Oil & Gas: Transforming Business

Asset intensive organizations like Oil and Gas have their own industry specific challenges when it com...
Sponsored by
Available Webcasts

Operating a Sustainable Oil & Gas Supply Chain in North America

When Tue, Oct 20, 2015

Short lead times and unpredictable conditions in the Oil & Gas industry can create costly challenges in supply chains. By implementing a LEAN culture of continuous improvement you can eliminate waste, increase productivity and gain end-to-end visibility leading to a sustainable and well-oiled supply chain.

Please join us for this webcast sponsored by Ryder System, Inc.


On Demand

Leveraging technology to improve safety & reliability

Tue, Sep 22, 2015

Attend this informative webinar to learn more about how to leverage technology to meet the new OSHA standards and protect your employees from the hazards of arc flash explosions.


The Resilient Oilfield in the Internet of Things World

Tue, Sep 22, 2015

As we hear about the hype surrounding the Internet of Things, the oil and gas industry is questioning what is different than what is already being done. What is new?  Using sensors and connecting devices is nothing new to our mode of business and in many ways the industry exemplifies many principles of an industrial internet of things. How does the Internet of Things impact the oil and gas industry?

Prolific instrumentation and automation digitized the industry and has changed the approach to business models calling for a systems led approach.  Resilient Systems have the ability to adapt to changing circumstances while maintaining their central purpose.  A resilient system, such as Maximo, allows an asset intensive organization to leverage connected devices by merging real-time asset information with other critical asset information and using that information to create a more agile organization.  

Join this webcast, sponsored by IBM, to learn how about Internet of Things capabilities and resilient systems are impacting the landscape of the oil and gas industry.


Taking the Headache out of Fuel License and Exemption Certificates: How to Ensure Compliance

Tue, Aug 25, 2015

This webinar, brought to you by Avalara, will detail the challenges of tax document management, as well as recommend solutions for fuel suppliers. You will learn:

-    Why it’s critical to track business partner licenses and exemption documents
-    The four key business challenges of ensuring tax compliance through document management
-    Best practice business processes to minimize exposure to tax errors


Emerson Micro Motion Videos

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!


Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected