The American Petroleum Institute report America’s Energy, America’s Choice has looked at the country’s energy potential, future security and economic prosperity. It concludes with a look at policies which will enhance oil and natural gas.
Choosing policies that promote oil and natural gas
‘Our nation is in a position to chart a course that could enable these economic and energy security gains to become a new norm for America,’ reads the report. However, to achieve this, the US must ensure that the government make the correct decisions and takes action to encourage development of the national oil and natural gas resources.
The API is worried about the imposition of higher taxes, which will inevitably prevent the development of energy resources. ‘The industry already pays an effective tax rate that is higher than any other US industry (44.6% from 2007 – 2012).’ The report also, in the realms of tax, suggests that capital cost recovery should be preserved and be a clear priority.
The Renewable Fuel Standard (FRS) is one policy that is impacting refiners. ‘The blendwall forces refiners and importers of gasoline and diesel fuel to remain in compliance by limiting the volume of transportation fuels that can be supplied to the domestic market.’ This could result in supply shortages and cost impacts within the industry, which could in fact have negative implications upon the entire US economy. The API as well as other bodies such as the American Fuel and Petrochemical Manufacturers strongly believes that this should be repealed.
The report also states that ‘policies should support oil and natural gas industry facilities and infrastructure necessary to bring energy and petroleum based products to consumers and businesses.’ This of course brings us back to the debates around the construction of the Keystone XL pipeline and LNG export facilities across the country.
Conclusion to America’s Energy, America’s Choice
Undoubtedly, the oil and natural gas industry plays a key role within the US economy providing jobs, growth and security of energy supply. Breakthroughs in technology is now enabling the country to use its resources as efficiently as possible and as long as legislation is considerate, the situation can only improve.
The report concludes by saying, ‘to fully realise the opportunities of this new energy future, we must make the deliberate choice to take greater advantage of our oil and natural gas resources and ensure our ability to refine these resources. We must build the facilities and infrastructure needed to bring fuels, natural gas, and other petroleum products to market. North America’s energy resources are bountiful. The benefits of unlocking them flow throughout all sectors of our economy and to families in every state. Our industry remains committed to working closely with elected leaders at the local, state, and federal levels. Therefore, we can choose energy for a thriving America.’
Written by Claira Lloyd.
Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/16012014/oil_gas_policies_usa_61/