Strong oil industry earnings help workers, retirees and government


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.

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now


Logistics Risk Management in the Transformer Industry

Transformers often are shipped thousands of miles, involving multiple handoffs,and more than a do...

Secrets of Barco UniSee Mount Revealed

Last year Barco introduced UniSee, a revolutionary large-scale visualization platform designed to...

The Time is Right for Optimum Reliability: Capital-Intensive Industries and Asset Performance Management

Imagine a plant that is no longer at risk of a random shutdown. Imagine not worrying about losing...

Going Digital: The New Normal in Oil & Gas

In this whitepaper you will learn how Keystone Engineering, ONGC, and Saipem are using software t...

Latest PennEnergy Jobs

PennEnergy Oil & Gas Jobs