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For Immediate Release
July 2, 2010

Leaders in Washington Continue to Take Steps to Increase
America's Dependence on Foreign Energy

WASHINGTON - How hard is this Administration, and some in Congress, working to lock up more job-creating domestic oil and natural gas that fuels our economy, helps ensure that energy costs are stable for struggling American consumers and puts hundreds of thousands of Americans to work? "We are working very hard," says Interior Secretary Ken Salazar, referring to the Administration's efforts to retool its job-killing offshore energy exploration moratorium.

Despite the fact that a federal court ruling has overturned the White House's offshore ban - recognizing that the Administration relied on "incomprehensible" studies, and making "factually incorrect" arguments that abused "reason (and) common sense" - and despite the fact that 125,000 jobs were lost in June, the White House is doubling-down on its efforts to put more of America's independent oil and natural gas producers out of work as the Gulf's economy continues to struggle. After all, it's these producers who hold 90 percent of the nation's offshore leases.

Compounding the moratorium's economically devastating effects, Washington policymakers - with support from the White House - remain committed to blocking and impeding the responsible development of American oil and natural gas: higher taxes; burdensome, duplicative and unnecessary regulations that will not add any environmental benefits; misguided actions that punish America's independent producers and give a boost to foreign oil companies.

But at every step of the way, the Independent Petroleum Association of America (IPAA) continues to fight for more oil and natural gas jobs here at home, and for more stable supplies of secure and reliable homegrown energy.

Offshore Moratorium Continues to Shatter the Gulf's Struggling Economy, Killing Thousands of Jobs 

• An attack on our livelihood: "The court is persuaded that it is only a matter of time before more businesses and jobs and livelihoods will be lost," Feldman wrote. ... "This moratorium is an attack on our livelihood," said Tanguis, who says she's so worried about the future she can't sleep at night, anxious the next paycheck will be the last for her husband, Ken. "'People are talking about us only as 'economic impacts,'" Tanguis said. "I'm tired of being called an economic impact. We are families. We need the work." The oil industry employs 32,000 people in Louisiana's coastal parishes and pumps an estimated $3 billion into the state economy. In cities like Houma in Terrebonne Parish, more than 60 percent of the jobs are oil-related. (McClatchy, 6/27/10)
   
• "Bruce Vincent, chairman of the Independent Petroleum Association of America and president of Houston-based Swift Energy, said Feldman was right to block a 'misguided, hastily implemented moratorium" that "fundamentally failed to recognize how critical America's oil and natural gas industry is to the livelihoods of so many Gulf families.'" (Houston Chronicle, 6/23/10)
   
• A damaging moratorium: "I've already seen the devastating effects of rigs leaving the United States for operations in Africa and Brazil, for example, each taking up to 1,200 jobs with it. All told, as many as 46,200 people stand to lose their jobs if the moratorium lasts six months. ... But the economic impact goes beyond the Gulf; it will reach the whole country. ... The industry supports 9.2 million jobs nationwide - 267,000 jobs in our state, and these are not just any jobs. ... We must lift the ban on deepwater drilling, get our people back to work and our rigs up and running again so we can stimulate the economy and help secure our energy future. (Tampa Tribune Op-Ed, 7/1/10)
   
• Drilling Moratorium Costing Gulf Docks Business: "As the Obama administration's six month moratorium on deep sea drilling winds through the courts, tens of thousands of oil workers are in limbo. In Louisiana, oil is a $70 billion business. If the moratorium becomes permanent, it could cost the state more than the spill itself. ... All 33 deepwater rigs have shut down production because of too much uncertainty. A six-month federal moratorium was lifted, but another's on its way. ... Rebstock has started laying off employees. He guesses at this rate, his company will survive a month more, maybe two. (CBS News, 6/29/10)

Misguided Policies Will Push Independents out of the Gulf, Costing American Jobs, Expanding Foreign Energy Dependence 

• IPAA's Bruce Vincent on Shortsighted Senate Committee-Passed Liability Legislation: "Unreasonable"; "A devastating impact on job losses": "A group that represents smaller oil companies said the legislation approved Wednesday by the Senate Environment and Public Works Committee to lift the cap on liability for damages from oil spills would largely benefit foreign oil companies and the largest oil firms. ... "This is unreasonable from an economic and business standpoint and will have a devastating impact on job losses and possible increased reliance on foreign oil," Bruce Vincent, chairman of the Independent Petroleum Association of America and president of the Houston-based Swift Energy, said in a statement. (Wall Street Journal, 7/1/10)

Tens of Billions in Job-Killing Taxes on American Oil, Natural Gas Producers 

• IPAA's Bruce Vincent: The billons in new "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 oil, his proposal demonstrates the complete opposite," Vincent said. (Wichita Falls Times Record News, 4/22/10)
   
• "[President] Obama's budget proposal raises taxes by roughly $40 billion on oil and gas companies." (The Hill, 4/14/10) 

An Onslaught of Attacks on Job-Creating, Homegrown Energy Production Enabled by Hydraulic Fracturing 

• "Easily the most mischaracterized and misunderstood element of the debate over hydraulic fracturing, some in Congress seem to believe that the slight percentages of chemical additives found in the water- and sand-based fracturing solution are secret -- and further, that industry continues to resist the disclosure of these elements," Lee Fuller, executive director of Energy in Depth, wrote to lawmakers in March. "Neither assertion is true." ... Fuller, who is also vice president of government relations at the Independent Petroleum Association of America, continued, "The materials used in the fracturing process are widely disclosed. At every well site in America where chemicals are present, you'll find a detailed listing of those materials printed and maintained on Material Safety Data Sheets (MSDS), which are mandated by the federal government. MSDS are searchable online. Additionally, several states and industry organizations, such as Energy in Depth, have provided information on their websites describing the kinds of additives used in the fracturing process, as well as their purpose." (Greenwire, 6/21/10)

U.S. Taxpayers Bankroll Offshore Oil, Natural Gas Production Abroad as Washington Continues to Lock Up Our Resources 

• Why are we lending billions to a foreign oil company that made $15 billion last year? "Last August, the U.S. Export-Import Bank issued a "preliminary commitment" letter to Brazil's state-run Petrobras in the amount of $2 billion, with the promise of more to follow. Why are we lending billions to a foreign oil company that made $15 billion last year? These taxpayer dollars finance exploration of the huge offshore discovery in Brazil's Tupi oil field in the Santos Basin near Rio de Janeiro. ... Someday we may be importing that oil we're helping Brazil get at. Has that letter been rescinded as part of the moratorium? Why are Brazil's offshore fields safe but ours aren't? (Investor's Business Daily Editorial, 6/23/10)