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Poll: Ohioans believe severance tax could harm economy and increase costs

COLUMBUS, OHIO, April 3, 2013 – Seventy-six percent of Ohio voters believe increasing state severance taxes on the oil and natural gas industry could harm the state’s economy and drive away energy development, according to a new poll of registered Ohio voters released today. Seventy-seven percent believe increasing severance taxes could hurt consumers of gasoline and home heating fuels.

“Ohio voters understand that increased taxes on energy development could have a direct negative impact them,” said Ohio Petroleum Council Executive Director Chris Zeigler. “This survey tells us Ohioans are leery of anything that hinders the promise of high paying jobs and a better quality of life associated with shale energy development. Ohioans worry that any tax increase could lead to higher costs.”

The proposed state budget currently being considered in the Ohio House calls for increasing severance taxes on oil and natural gas produced in Ohio.

The telephone poll of 605 registered Ohio voters found that a 69 percent majority agree that increasing the severance tax could eliminate jobs in the oil and gas industry and other economic sectors. Sixty-eight percent of registered voters surveyed also believe an increased severance tax could slow oil and natural gas development.

“The governor and legislature have done an excellent job in providing the industry with a strong regulatory framework that encourages environmentally responsible development and bolsters citizens’ confidence,” said Zeigler. “We urge them to combine these smart regulatory advances with sound fiscal policies.”

OPC is a division of API, which represents all segments of America's technology-driven oil and natural gas industry. Its 500-plus members provide most of the nation's energy. The industry also supports 9.2 million U.S. jobs and 7.7 percent of the U.S. economy, delivers $85 million a day in revenue to our government, and since 2000, has invested over $2 trillion in U.S. capital projects to advance all forms of energy, including alternatives.

Methodology

The telephone study was conducted on March 25-31, 2013 by Harris Interactive on behalf of the American Petroleum Institute (API) among 605 registered voters in Ohio, with a sampling error of +/- 4.0%. A full methodology is available upon request. Harris Interactive is one of the world’s leading custom market research firms, known widely for the Harris Poll. For more information, visit www.harrisinteractive.com.

"What America is Thinking on Energy Issues" is a public opinion series provided by API, offering data to inform policy discussions and ensure policymakers and others know Americans' perspectives on key energy issues.