API Stresses New Taxes on Oil and Gas Industry Could Imperil Economic Recovery; Runs Ads in West Virginia and Nine Other States

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Jul 06, 2010, 12:48 ET

WASHINGTON, July 6 /PRNewswire-USNewswire/ -- With Congress expected to consider energy legislation this summer, some are suggesting that any new programs be paid for with new taxes on the oil and natural gas industry. As the nation struggles to recover from recession, further taxes on an industry that supports 9.2 million jobs and 7.5 percent of our GDP could have a devastating effect on our jobs, economic recovery and our energy security, according to the leading oil and natural gas trade association.

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"While the focus of our industry is on helping BP stop the spill and clean up the oil, we cannot ignore the fact that imposing significant new taxes on the oil and natural gas industry will have severe economic consequences and job impacts," said Jack Gerard, president and CEO of the American Petroleum Institute.

API will run a series of 15 and 30 second television ads in West Virginia and nine other target states during July. The ads feature working Americans' responses to the potential for new taxes on the oil and natural gas industry.

"The oil and natural gas industry supports more than 60,000 jobs in West Virginia and supports more than 9 percent of the state's economy. Oil and natural gas deployment is critical to West Virginia's economic future, as well as a big part of the solution to America's energy needs and economic recovery," said Gerard.

Opposition to higher taxes remains strong among the public and has been cited as a factor in several primary elections and in recent opinion polling.

"Americans have historically been suspicious of taxes on the industry that produces most of the energy they consume. They deserve to be informed about new proposals that would increase those taxes by many billions of dollars a year. The ads are part of the national debate on energy and tax policy. We hope they will help ensure decisions affecting our economic and energy security are not made in a vacuum or based on incomplete information," said Gerard.

The ads will run in Colorado, Michigan, North Carolina, North Dakota, Pennsylvania, Virginia, Maine, Missouri, Ohio and West Virginia starting on July 6.

The American Petroleum Institute (API) is the only national trade association that represents all aspects of America's oil and natural gas industry. Our nearly 400 corporate members, from the largest major oil company to the smallest of independents, come from all segments of the industry. They are producers, refiners, suppliers, pipeline operators and marine transporters, as well as service and supply companies that support all segments of the industry.

SOURCE American Petroleum Institute