Bill Bush | 202.682.8114 | bushw@api.org

WASHINGTON, May 13, 2011 – API’s Vice President of Regulatory and Economic Policy Kyle Isakower criticized a study issued by the U.S. Congress Joint Economic Committee that claims raising taxes on the U.S. oil and natural gas industry would decrease the deficit:

"This study was neither accurate nor insightful. Annually raising taxes on the industry by billions of dollars would reduce investment in American oil and natural gas development, cost thousands of U.S. jobs, and, over time, reduce both energy production and the taxes and royalties generated from it. It would also increase imports. We wouldn’t reduce the deficit, and necessary government investments could be adversely affected. Those advocating tax increases, therefore, would be cutting off their nose to spite their face.

"Those who want more revenue should work to increase access to available U.S. oil and natural gas reserves, which have a long-term government revenue potential approaching $2 trillion. That could reduce the deficit and help finance critical government programs without raising energy costs and reducing supplies."

API represents more than 470 oil and natural gas companies, leaders of a technology-driven industry that supplies most of America’s energy, supports 9.2 million U.S. jobs and 7.7 percent of the U.S. economy, delivers $86 million in revenue to our government every day, and, since 2000, has invested over $2 trillion in U.S. capital projects to advance all forms of energy, including alternatives.