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House Votes for Oil Imports Over American Energy

WASHINGTON (January 18, 2007) -- The House of Representatives today passed energy legislation (HR 6) that discourages investment in new, American oil and natural gas supplies and does nothing to decrease the nation's dependence on foreign oil, according to the Independent Petroleum Association of America (IPAA).

"This is purely a political bill playing on the campaign rhetoric of the 2006 election," said Barry Russell, president of the Independent Petroleum Association of America. "At a time when we need more American energy, it simply doesn't make sense to harm those companies that can provide it. Unfortunately, this bill is a loss for American consumers and a win for foreign oil suppliers."

IPAA represents more than 5,000 American oil and natural gas companies, most of them small, independent businesses, who drill 90 percent of the oil and natural gas wells in the United States.

The legislation would single-out the American oil and natural gas industry for an increased tax rate; require some Gulf of Mexico operators to renegotiate valid contracts that the government mistakenly drafted; and redirect revenue from the industry to alternative energy projects. These provisions take capital away from U.S. oil and natural gas producers that otherwise would have been used by companies to invest in new, domestic supplies.

The bill will now be considered by the U.S. Senate.

Russell said: "The formulation of America's energy policy deserves more than three hours of debate, as the House has done today. We hope and believe the Senate will give these important issues more thorough and thoughtful consideration."

For more information on the bill's provisions and IPAA's position, please see the following press release: http://www.ipaa.org/news/press_releases/pr2007/2007-01-12.php.

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IPAA is the national trade association representing oil and natural gas producers that drill 90 percent of the nation's oil and natural gas wells. These companies account for 68 percent of America's oil production and 82 percent of its natural gas production.