API argues against SEC’s anti competitiveness regulations

The American Petroleum Institute (API) and a coalition of concerned business groups have presented arguments to the US District Court for the District of Columbia on the API’s new lawsuit challenging the US Securities and Exchange Commission’s (SEC) implementation of Section 1504 of the Dodd Frank Act.

According to Jack Gerard, API President and CEO, US companies are already leading the way to increased transparency in their operations. Section 1504 could damage the competitiveness of American companies by requiring businesses to report proprietary information that can be obtained by global competitors, including state owned companies in China and Russia.

The SEC rule requires publicly traded energy companies to release commercially sensitive, detailed payment information about foreign and US projects. Firms would have to reveal extensive data about how much they pay in licenses, taxes, royalties and other fees, giving their competitors the upper hand when bidding foe energy contracts. By undermining America’s competitive edge, Section 1504 could cost jobs, damage the economy and make it more difficult for US companies to gain access to resources abroad.

Gerard has additionally highlighted that the industry is working with civil society groups and the Obama administration to implement the Extractive Industries Transparency Initiative (EITI), a program that will effectively promote transparency without harming American companies and investors.

Adapted from press release by Emma McAleavey.

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