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For Immediate Release
April 23, 2010

WASHINGTON - Small, independent oil and natural gas producers in America - who on average employ only 12 workers and are responsible for producing 9 out of 10 wells nationwide - may be forced to pay tens of billions more in new, punitive federal taxes. As reported by The Hill just days ago, "[President] Obama's budget proposal raises taxes by roughly $40 billion on oil and gas companies."

The Independent Petroleum Association of America's Chairman Bruce Vincent - president of the Houston-based Swift Energy Company - said this week that, if enacted, these job-killing tax hikes "would reduce [domestic] oil and gas production by 20 to 40 percent."

Following his recent appearance on CNBC's Mad Money, Vincent delivered remarks to the Texas Alliance of Energy Producers earlier this week, addressing a host of pressing federal legislative and regulatory issues.

The Wichita Falls Times Record News reports this about Vincent's remarks under the headline "Swift Energy president says taxes will hit hard":

• Vincent, who is also chairman of the Independent Petroleum Association of America, said energy taxes would have a devastating effect on American energy producers, listing intangible drilling costs, percentage depletion, marginal well tax credits, enhanced oil recovery credit, amortization costs, manufacturers tax deduction, passive loss exception and repeal of the deduction for tertiary injectants.
  
  
  "While the president continues to speak about ways to turn the economy around, address the global climate issue and promote a balanced energy policy to reduce the nation's reliance on foreign oils, his proposal demonstrates the complete opposite," Vincent said.

Vincent adds this: 

• "We all need to get involved," he said. "We need a policy that thrives and creates more jobs in our industry. We need policies that will spur growth."

Academics are weighing-in, too, on the damaging effects that these enormous tax hikes on American oil and gas producers will have on our economy and our nation's security. Mark Perry, a University of Michigan-Flint economics professor writes this in a Detroit News column this week entitled "Taxing oil will stall progress":

• The administration is seeking to raise $36.5 billion in new tax revenue between fiscal 2011 and 2020 by ending certain tax credits and deductions for domestic oil and gas production.
  
  
  But the Obama Administration's proposed increase in oil industry taxes and fees would divert funds away from energy investment.
  
  
  If Congress approves the tax increase, domestic oil and gas production will fall, with uncertain economic and environmental effects. There will be job losses, less revenue for governments at all levels, and problems for our country's energy security.
  
  
  Instead, we should be doing everything we reasonably can to stimulate the production and use of America's energy resources.

State government officials are also speaking out about these harmful tax increases. Maine state representative Mike Thibodeau - a top member of the Utilities and Energy Committee, who is also a small business owner - writes this in a Bangor Daily News column under the headline "Obama's tax on oil, gas will hurt the economy":

• President Obama's budget ... will specifically target our domestic energy companies for what amounts to a tax increase - even in the middle of a recession at a time when we are trying to decrease our reliance on foreign energy. As someone who works in an energy-intensive industry - indeed, at the crossroads between the energy and manufacturing sectors who will be hit by the tax increase - I can tell you it's a mistake.
  
  Raising taxes on energy companies, the vast majority of which are small businesses, will make it more expensive to produce everything in this country.
  
  
  This tax targets "domestic" energy producers and manufacturers, not foreign companies. ... U.S. energy companies will cut back - cut jobs, cut research budgets, cut production. Some smaller energy companies may not survive. Doing this when America's natural gas market is receiving new investment seems counterproductive.
  
  Just when we need to kick-start our economy into recovery, Washington wants to slap it with new taxes, higher energy costs, and unprecedented new layers of bureaucratic red tape.