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

US House panel grills PHMSA’s interim chief over pipeline safety delays

07/14/2015 Members of a US House Energy and Commerce subcommittee asked US Pipeline and Hazardous Materials Safety Administration Interim Executive Director S...

Market seen balancing with OPEC at target

07/14/2015 Target-level production of crude oil by members of the Organization of Petroleum Exporting Countries would balance the oil market in 2016, accordin...

MARKET WATCH: Crude oil futures prices settle lower on Iran uncertainty

07/14/2015 Crude oil futures prices alternated between gains and losses in July 13 trading before settling lower on both the New York and London markets on un...

PHMSA issues state pipeline excavation damage prevention programs rule

07/14/2015 The US Pipeline and Hazardous Materials Safety Administration issued a final rule to establish the process for evaluating state excavation damage p...

Halliburton, Baker Hughes agree to extend DOJ review of planned merger

07/13/2015 Halliburton Co. and Baker Hughes Inc. reached a timing agreement with the US Department of Justice’s Antitrust Division to extend DOJ’s review of H...

EIA’s estimates for state crude oil production to be helped by direct survey

07/13/2015 Understanding how crude oil production in US key states has been affected by recent changes in crude oil prices and drilling activity is of great i...

Russia’s Rosneft inks deal for stake in Indian refinery

07/13/2015 OAO Rosneft has entered a preliminary agreement to purchase as much as 49% interest in Essar Energy PLC subsidiary Essar Oil Ltd., including its 20...

MPLX, MarkWest to merge in $15.8 billion deal

07/13/2015 MPLX LP, a Findlay, Ohio-based master limited partnership (MLP) formed by Marathon Petroleum Corp. in 2012, and Denver-based MarkWest Energy Partne...

EPP completes acquisition of EFS Midstream

07/13/2015 Enterprise Products Partners LP (EPP) said it has completed the purchase of EFS Midstream LLC from Pioneer Natural Resources Co. and Reliance Holdi...
White Papers

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

Squeezing the Green: How to Cut Petroleum Downstream Costs and Optimize Processing Efficiencies with Enterprise Project Portfolio Management Solutions

As the downstream petroleum industry grapples with change in every sector and at every level, includin...
Sponsored by

7 Steps to Improve Oil & Gas Asset Decommissioning

Global competition and volatile markets are creating a challenging business climate for project based ...
Sponsored by
Available Webcasts

On Demand

OGJ's Midyear Forecast 2015

Fri, Jul 10, 2015

This webcast is to be presented by OGJ Editor Bob Tippee and Senior Economic Editor Conglin Xu.  They will summarize the Midyear Forecast projections in key categories, note important changes from January’s forecasts, and examine reasons for the adjustments.

register:WEBCAST


Predictive Analytics in your digital oilfield - Optimize Production Yield and Reduce Operational Costs

Tue, Jul 7, 2015

Putting predictive analytics to work in your oilfield can help you anticipate failures, plan and schedule work in advance, eliminate emergency work and catastrophic failures, and at the same time you can optimize working capital and improve resource utilization.  When you apply analytic capabilities to critical production assets it is possible to reduce non-productive time and increase your yield.

Learn how IBM's analytics capabilities can be applied to critical production assets with the goal of reducing non-productive time, increasing yield and reducing operations costs.

register:WEBCAST


Cognitive Solutions for Upstream Oil and Gas

Fri, Jun 12, 2015

The oil & gas sector is under pressure on all sides. Reserves are limited and it’s becoming increasingly expensive to find and extract new resources. Margins are already being squeezed in an industry where one wrong decision can cost millions. Analyzing data used in energy exploration can save millions of dollars as we develop ways to predict where and how to extract the world’s massive energy reserves.

This session with IBM Subject Matter Experts will discuss how IBM Cognitive Solutions contribute to the oil and gas industry using predictive analytics and cognitive computing, as well as real time streaming for exploration and drilling.

register:WEBCAST


The Alternative Fuel Movement: Four Need-to-Know Excise Tax Complexities

Thu, Jun 4, 2015

Discussion on how to approach, and ultimately embrace, the alternative fuel market by pulling back the veil on excise tax complexities. Taxes may be an aggravating part of daily operations, but their accuracy is crucial in your path towards business success.

register:WEBCAST


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