Apr 11, 2013 U.S. Oil, Gas Producers Take on Tax Attacks
‘Energy Tax Facts’ Campaign Launches As Obama Calls for Tax Increases on Industry
WASHINGTON, DC – The Independent Petroleum Association of America (IPAA) announced today a new educational campaign, Energy Tax Facts, that will explain the often complicated tax provisions and policies that apply to American independent oil and natural gas producers – companies that drill 95 percent of the nation’s wells.
Yesterday, President Obama released his budget proposal that includes dramatic new obstacles for the American oil and natural gas industry. IPAA’s campaign and website, EnergyTaxFacts.com, will focus on the vital tax provisions that currently underpin American energy production.
IPAA represents more than 7,000 independent oil and natural gas producers – companies with an average of just 12 employees – that rely on long standing provisions to continue producing safe, reliable, American energy and U.S. jobs – one of the few bright spots in today’s economy.
IPAA President and CEO Barry Russell made the following announcement regarding the campaign’s launch:
“America’s independent oil and natural gas producers play an indispensable role in advancing national security and supporting the economy. But despite common rhetoric, these companies do not receive a single dollar in government subsidies.
“The deductions provided to these producers are functionally no different than those provided to technology companies for research and development, or farms for fertilizer and animal feed. That is why IPAA is pleased to announce its new Energy Tax Facts campaign and website, a program to speak plainly and set the record straight on American energy and the critical tax structure behind it.
“As oil and natural gas production continues to increase across the nation, the United States finally has a chance to eliminate dependency on unstable regions of the world for essential energy supply. If Congress and the administration choose to target critical energy tax provisions, which stimulate investment in safe American energy production, they could wipe out 25 percent of future investment, and thus reduce America’s ability to produce more energy here at home.
“To be clear, the tax structure that governs independent oil and natural gas producers is not a subsidy or a handout. These provisions and deductions – available to nearly every American industry – are what enable continued investment into U.S. production and exploration. Yet as the administration attempts to take credit for the historic energy output these companies are providing, it simultaneously targets the men and women at the heart of U.S. production – American independent producers that drill 95 percent of the nation’s oil and natural gas wells.
“Exploration and production of American energy is a capital intensive process and drilling a well does not guarantee resource production or return on investment. Historical provisions, such as intangible drilling costs and percentage depletion, are keys to allowing independent producers to continue investment and exploration here in the United States. The activities of these companies directly and indirectly support more than 4 million jobs in the lower 48 states and create billions in state and federal revenue and taxes.”
Visit the Energy Tax Facts website HERE to learn more about the campaign. On the site, you will find a short video on the real facts behind American energy, fact sheets, resource material, video testimonials, and more. Come back often as the site will be frequently updated with new features and information to educate policymakers and the public on the facts about American energy production and the U.S. tax code.