Proposed Tax Increases Unfair to Industry and May Hinder, Not Grow Production
For Immediate Release: Contact: Nicolette Nye
Thursday, March 1, 2012 (202) 347-6900
NOIA Statement on President Obama’s Energy Speech
Proposed Tax Increases Unfair to Industry and May Hinder, Not Grow Production
Washington, D.C. – NOIA President Randall Luthi today issued the following statement following President Obama’s Energy Speech in New Hampshire:
“While the President today said his Administration is focused on oil and gas production, he continues to propose tax increases that will certainly not incentivize the industry to continue to make the immense capital investments required to find and develop new sources of offshore oil and gas. He also continued to shamelessly claim credit for production increases realized during his term, but made possible by policies put in place long before he took office. While the facts are the facts, it is disingenuous of the President to claim credit for increased production, particularly when that increased production has occurred on private and state lands. The fact remains that his administration has done very little to encourage new future production on federal lands onshore or offshore, and has in fact done more to thwart it.
“As the President said, this is a global-market industry. The oil companies themselves have very little influence on the price of gasoline at the pump. Yet, once again, the President evoked the specter of “big oil” and record profits for oil and gas companies. It is a simple fact of business that when prices are higher, so are profits.
“We agree with the President’s focus on an “all of the above” energy policy for our nation, but a policy that would unfairly punish one industry by withholding the same tax treatment enjoyed by other sectors of the economy is simply not a recipe for adding new jobs, nor providing reliable and affordable energy to America.”
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NOIA is the only national trade association representing all segments of the offshore industry with an interest in the exploration and production of both traditional and renewable energy resources on the nation’s outer continental shelf. NOIA’s mission is to secure reliable access and a fair regulatory and economic environment for the companies that develop the nation’s valuable offshore energy resources in an environmentally responsible manner. The NOIA membership comprises more than 270 companies engaged in business activities ranging from producing to drilling, engineering to marine and air transport, offshore construction to equipment manufacture and supply, telecommunications to finance and insurance, and renewable energy.
