The Oklahoma Independent Petroleum Association makes it clear it does not like the President’s $10 a barrel tax on oil proposal and suggests such a tax would make the U.S. more dependent than ever on foreign produced oil.
“President Obama has not hidden the fact that he would like to eliminate the use of fossil fuels and a $10-a-barrel fee is just another attempt to tax an already suffering industry into submission,” said James Roller, Vice President of Legislative Affairs at the OIPA. “This is a short-sighted and uneducated understanding of the energy industry and the role of oil and natural gas in the U.S. Economy.”
Roller pointed out that the President has called for the repeal of longstanding tax provisions for oil and natural gas producers every year he has held office.
“When that effort failed due to a lack of support in Congress, efforts to slow oil and natural gas production were shifted to the nation’s regulatory agencies. The EPA has targeted hydraulic fracturing. New emissions standards have been set for oil and natural gas production facilities,” continued the OIPA official.
He said the $10 tax on American oil and gas production in addition to taxes already paid by the industry would make the majority of the U.S. oil and gas production uneconomical in today’s low price environment.
“That means American oil and natural gas production will rapidly decline, making U.S. consumeers increasingly dependent on energy sources from foreign,and oftentimes, hostile countries,” said Roller.
