American Petroleum Institute Hosts Rallies to Oppose New Legislation
A series of rallies have been scheduled for September to help strengthen the public image of the oil and gas industries in the U.S. The American Petroleum Institute (API) hopes to link the energy markets to the overall health of the national economy, while speaking out against a few key pieces of opposing legislation currently in Congress.
Representatives at API are coordinating three events with oil companies in Texas to oppose the repeal of tax breaks and the shift toward increasing energy company liability for oil spills. Advocates for the legislation feel that it will make drillers more cautious, and prevent the chance of any repeats of the BP rig explosion.
The rallies will be held at large outdoor venues to make a statement to Congress. In a conference call earlier this week, API President Jack Gerard said the rallies will be “a big-way call on Congress to focus on one thing on everybody’s mind – putting unemployed Americans back to work.” The API is targeting a bill that stalled out in the Senate, but will be revisited during the next Congressional session. The legislation would raise tax rates for energy companies, hurting the security of U.S. energy by making domestic production less attractive. Currently oil and gas companies generate over 9 million jobs in this country, comprising roughly 7.5% of the U.S. economy.
The first three rallies will kick off on September 1st in Houston, Beaumont, and Corpus Christi. Additional events will follow in Canton, Ohio; Grand Junction, Colorado; and Farmington, New Mexico shortly thereafter. The API hopes that the diverse communities in these cities will help showcase the impact that the energy companies have on the economy.
Lobbying for any cause can be expensive. Federal records show that the API has already spent $3.6 million this year. Gerard opted not to disclose how much additional funding has gone into advertising across the country. The group feels strongly that the tax break that promotes production and manufacturing developments in the energy industry needs to stay in place. A recent report estimates that domestic oil and natural gas production could take a 10% hit between now and 2017 if the proposal goes through.
The BP oil spill was the subject of more than 60 Congressional hearings, and is a large part of the motivation behind the new legislation. Company liability for spills and inspection fees will increase dramatically if the bill passes. Research director at Greenpeace, Kert Davies, is pessimistic about the new laws passing through the Senate to reach the President. The API rallies will only create additional hurdles.