The American Petroleum Institute (API) has launched a series of adverts to be run on broadcast and cable channels. The campaign features the unscripted words of everyday Americans who believe that raising taxes for energy companies may translate into higher energy costs for consumers. The institute decided to run the campaign in order to remind Congress that at a time when many families have had to work hard to balance their budgets, asking them to pay more for the energy they need is bad policy.
According to a study by Wood Mackenzie, a US$ 5 billion/y tax increase would result in a decrease of US$ 233 billion in revenue to federal, state and local governments by 2030. Furthermore, this study estimates that increased investments, as a result of pro growth and energy development policies, could generate an additional US$ 800 billion in revenue by 2030. That’s a US$ 1 trillion difference to government’s bottom line.
API proposes that if increased revenue is truly the objective of those seeking to increase taxes on the industry, then the US oil and natural gas industry should be allowed to continue to do what it has always done, invest in the US economy by providing well paid jobs both domestically and internationally that develop the energy America needs.
As it seems from the new API advertising campaign, that’s what the American people support, and in the long term, the result would be far better for the American economy, for consumers, for the country’s energy security, and for its long term economic growth.
Adapted from press release by Jack Davidson.
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