Strong oil industry earnings help workers, retirees and government

Source:API

Strong industry earnings benefit the economy and are no justification for tax increases on U.S. oil and natural gas companies, API Chief Economist John Felmy told reporters this afternoon:

“U.S. oil and natural gas company earnings tell the story of an industry that is investing in America’s future. The industry’s investments – which totaled more than half a trillion dollars in 2011, according to a PriceWaterhouseCoopers’ report – are providing jobs, strengthening pensions and retirement savings, and generating massive tax payments for the government.

“By reducing investment in new oil and natural gas projects, more taxes could undercut growth in new jobs. And, by raising costs for oil and natural gas companies, more taxes could weaken the industry’s contribution to a more secure retirement for millions of Americans. Ownership of America’s oil and natural gas companies is widely dispersed. Public employee pension funds, institutions such as colleges and universities, people with IRAs and 401(k)s, and many other investors hold almost $1.4 trillion in company stock, which represents almost 9 percent of total U.S. market capitalization for all industries.

“Our bottom line is simple. Strong earnings are a good thing. Successful oil and natural gas companies benefit their owners – millions of Americans – and also create jobs and strengthen the economy. Increasing taxes on the industry threatens this and is not justified. The industry is already paying its fair share.”

API Chief Economist John Felmy comments on the impact of tax increases on industry earnings.

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