Reid Porter | 202.682.8114 | porterr@api.org

WASHINGTON, November 30, 2010 — John Felmy, chief economist of the American Petroleum Institute (API), questioned the New York State legislature’s approval of a bill to put a moratorium on natural gas drilling in the state:

“We urge Governor David Paterson to veto this moratorium. Blocking important natural gas development and the creation of new jobs and revenues is not sound energy or economic policy. New York continues to struggle with an economic crisis, and natural gas should be part of the solution to the state’s economic problems.

“The Marcellus gas industry in New York could be generating more than $16 billion in economic output, almost $4 billion in additional tax revenue, and more than 180,000 jobs by 2020, according to recent studies.

“A comprehensive set of existing industry best practices and state regulations have proven effective in the safe use of the hydraulic fracturing process for more than 60 years and in over a million wells. Every aspect of exploration and production is guided by a straightforward written framework for sound operations. This guidance includes well design, water use and management, and surface environmental considerations.

 “We need to allow the oil and natural gas industry to get to work at what they do best: powering the economy by safely and reliably developing the Marcellus Shale, and creating thousands of new jobs in the state.”

API represents more than 400 oil and natural gas companies, leaders of a technology-driven industry that supplies most of America's energy, supports more than 9.2 million U.S. jobs, accounts for 7.5 percent of the U.S. economy, and, since 2000, has invested nearly $2 trillion in U.S. capital projects to advance all forms of energy, including alternatives, while reducing the industry's environmental footprint.