Energy Industry Opposes Inflation Reduction Act | Rigzone

The American Petroleum Institute (API) has joined nearly 60 other trade groups representing the U.S. natural gas and oil industry in opposing the Inflation Reduction Act (IRA) as adopted by the Senate.

In a letter to House Speaker Nancy Pelosi and Minority Leader Kevin McCarthy, the organizations described problematic provisions, including punitive new taxes and red tape that undermine the industry’s ability to promote safety. American consumer energy. Read the full text of the letter below.

“The undersigned trade associations, representing thousands of businesses across the United States that collectively employ millions of Americans, write to express our opposition to the Inflation Reduction Act (IRA) as passed by the US Senate. Additionally, we are writing to urge you to reconsider the policies within the legislation before proceeding.

The United States experienced its second consecutive quarter of negative GDP growth, and American consumers are facing record inflation. We share the goal of fighting climate change, as evidenced by the policies we support and the actions we take every day.

However, the massive tax increases and new government spending in the IRA represent the wrong policies at the wrong time.

We also face the largest global energy crisis since the 1970s, and the energy security of the United States – and that of our strategic allies abroad – is being tested. In addition, energy costs in the United States have increased by 40% over the last twelve months, putting serious pressure on the incomes of American households.

With these current conditions as the backdrop to this legislation, several specific policies included in the IRA are particularly troubling and warrant reconsideration. We draw your attention to three of these provisions:

1. The IRA imposes a new minimum corporate tax, raising taxes on Americans by more than $300 billion over the next 10 years. As President Obama noted in 2009, “the last thing you want to do is raise taxes in the middle of a recession.”

2. The IRA imposes an $11.7 billion tax on crude oil and petroleum products. At a time when energy prices are at record highs, Congress should not add additional costs to US energy companies competing globally.

3. The IRA places additional constraints on the ability of businesses to develop and produce the energy Americans need to power our economy and enhance our energy security. This includes increased charges on domestic production and the establishment of a new $6.3 billion natural gas tax.

Finally, the IRA does not address permit reform, which is desperately needed and essential to effectively deliver affordable and reliable energy to consumers in a growing economy.

To date, neither the House nor the Senate has introduced comprehensive permission reform legislation. We urge Congress to quickly consider and pass licensing reform without delay.

For the above reasons, we express our opposition to the IRA and ask that you reconsider passing this legislation,” the letter reads.

Besides API, some of the signatories are American Exploration and Production Council, American Fuel & Petrochemical Manufacturers, Energy Workforce & Technology Council, Independent Petroleum Association of America, Permian Basin Petroleum Association, National Association of Plumbing-Heating-Cooling Contractors, and the James Madison Institute as well as industry associations in Arkansas, West Virginia, Florida, Missouri, California, Illinois, Colorado, Florida, Iowa, Georgia, Kansas, Louisiana, Alabama, Michigan, Minnesota, New Mexico, North Carolina and North Dakota, Ohio, Pennsylvania, Wyoming, South Dakota and Texas.

To contact the author, send an e-mail to [email protected]

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