Te State o American Energy
Develop America’sEnergy Resources
Developing North America’s vast oil and natural gas resources, bothoshore and onshore, will helpmeet growing energy demand, createhundreds o thousands o new U.S. jobs, provide billions in criticalrevenue to ederal, state and localgovernments, and enhance ourenergy security. With this in mind,policymakers should:
Re-examine and reconsider limiting ofshore exploration and productionin the eastern Gul o Mexico and inthe Atlantic and Pacic.
Continue plans or on- and ofshore Alaska development, which willgenerate thousands o jobs through-out the country—rom pipelinemanuacturers in the Midwestand computer technicians on thecoast to labor union workers orconstruction and maintenance.
Expeditiously process and approvedrilling plans and permits orpending and uture lease areas.
Support the onshore developmento natural gas, including shale gas,and rerain rom imposing unnec-essary new regulations or taxes onnatural gas operations.
Promote policies and a regulatory environment that will support thegrowth and ree trade o Canadianoil sands, a reliable, sae and readily available energy source, including the approval o key pipeline projectsthat will help create jobs in both theUnited States and Canada.
Avoid PunitiveNew Energy Taxes
With policies that create and sustain a level playing eld orall energy options, the oil and natural gas industry will createnew jobs and help uel the nation’seconomy. Conversely, adding billions o dollars in new and punitive taxes on our industry will have a devastating impact on American jobs and economicgrowth. With this in mind,policymakers should:
Advance policies that encouragecompany investment—creating jobs and making U.S. companiesmore competitive.
Resist eforts to impose punitivenew taxes or costly and unnecessary regulations on American energy companies that would kill jobs,slow or reverse economic growthand harm American businesses andconsumers alike.
Enact Smart EnergyPolicy Based on SoundEconomic Principles
Burdensome and unnecessary EPA regulations could erode industry environmental and efciency gainsand have unintended consequencesor the U.S. economy. Our nationneeds policies that provide or energy exploration, energy production and environmental protection. With thisin mind, policymakers should:
Prevent the unintended consequenceso EPA proposals. EPA’s mission canand should be met through scienti-cally sound, cost-efective measuresthat allow or continued economicgrowth and job creation.
Allow Congress to commit to a thoughtul and balanced approachto climate change that involves allstakeholders, rather than continueEPA eforts to regulate GHGemissions under the Clean Air Act.
Tousands o U.S.
businesseslarge and small depend
on oil andnatural gas operations. Te industry supports businesses well outside theGul region—vendors that providevital support and services to Gul operations are located as ar away as Pennsylvania and Illinois.
Creating Good Jobs
Te oil and natural gas industry supports more than
U.S. jobs, including
direct jobs and
indirect jobs rom the purchase o goodsand services.
In 2008 and 2009, industry salariesin the exploration and productionsectors were
more than double
thenational average or all U.S. jobs.
Te number o direct oil andnatural gas industry employeesis larger than the populationso
Allowing oil and natural gascompanies to access domesticresources currently of-limitscould create
hundreds o thousands o new jobs
with the right publicpolicies and partnershipbetween industry andpolicymakers, we canenhance our economic,environmental andenergy security
API and its member companiesare committed to working withpolicymakers to pursue a thoughtul,commonsense energy agenda—one that promotes U.S. economicgrowth, job creation and sae, reliable,afordable energy or the uture.
What the Industry is Doing
In addition to the development andimprovement o saety standards andoperations, the oil and natural gasindustry is at the oreront o:
advanced energy technologies
, putting us on thecutting edge o exploring or, nding and producing energy resources;
Diversiying energy resources
drawing upon a ull range o energy sources, including alternatives and renewables.Industry investments in technologiessuch as cogeneration and carboncapture and storage (CCS), have reducedgreenhouse gas (GHG) emissions by more than
48 million metric tons
o carbon dioxide equivalent rom 2007to 2008, a reduction comparable totaking
9.7 million cars
of the roads.
Te industry is also researching,developing and marketing alternativeand renewable sources o energy,including solar, geothermal, biouels,uel cells, hydrogen power and wind energy.
Growing the Economyby Developing America’sEnergy Resources
Oil and natural gas companiespaid
in total incometaxes rom 1980 through 2008and more than
tothe government in rent, royalty and bonus payments rom 1982through 2009.
Te oil and natural gas industry provides the U.S. reasury,on average, with well over
Allowing companies to accessoil and natural gas resourcescurrently of-limits could generatean additional
in government revenue.
Industry taxes, royalties, rentalpayments and other developmentees
und community needs
,including roads, schools and parks.
Millions o Americans benet
rom the industry’s strong economicperormance as shareholders in thesecompanies through pension plans,mutual unds, IRAs and 401k plans.
Who Owns “Big Oil?”(Holdings of Oil Stocks, 2007)
What Policymakers Should Do
“TheDistribution ofOwnership ofU.S.Oil and Natural Gas Companies,”
IndustryEmploymentLabor Income( $ millions) Value Added( $ millions)
Direct Impact of the Oil and Natural Gas Industry2,123,291199,344456,971Indirect
and Induced Impacts on Other Industries7,114,090358,916580,089Services3,399,474149,462181,720Wholesale and Retail Trade1,174,76249,71180,915Finance, Insurance, Real Estate, Rental and Leasing828,90447,48773,322Manufacturing680,83449,93673,322Transportation and Warehousing276,49213,89218,746Construction220,92311,18513,722Information165,85915,20629,324 Agriculture122,5422,1935,197Utilities26,2724,30914,652Mining10,8981,0372,068Other207,13014,49916,122Total Impact9,237,381558,2601,037,060
As a % of U.S. Total5.2%6.3%7.5%
The Economic Impacts of the Oil and Natural GasIndustry on the U.S. Economy in 2007 by Industry
“TheEconomic Impacts oftheOil and Natural Gas Industryon theU.S.Economy,”