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Page added on January 9, 2013
Hands Off, Oil Industry Warns Government
Jack Gerard, the often-combative chief executive of the American Petroleum Institute, said Tuesday that the United States was “at the crossroads of a great turning point” in the nation’s energy history.
United States Energy Association Jack Gerard, chief executive of the American Petroleum Institute.As long as Congress and the Obama administration don’t mess it up, he warned.
In a broad-gauge speech in Washington on the state of the American oil and gas industry, Mr. Gerard said that because of new petroleum finds and new drilling techniques – chiefly directional drilling and hydraulic fracturing in shale formations – the United States could become the world’s leading energy producer.
“North America could become self-sufficient in liquid fuels in roughly 12 years,” Mr. Gerard said, citing figures from the International Energy Agency. “And as a potential energy exporter, we can help bring greater stability to the geopolitics of energy, to say nothing of the positive impacts increased U.S. supply would have for U.S. businesses, workers and consumers.”
But he cautioned that this rosy future was dependent on the federal government’s not interfering with his industry, by, say, raising taxes on oil companies, or imposing new environmental regulations on fracking operations, or limiting greenhouse gas emissions from refineries.
“The most important thing is to do no harm,” Mr. Gerard said in a question-and-answer period after his speech. “Don’t overreact and do anything that would impede or discourage what we see going forward state by state today.”
He said that North Dakota, Texas and Pennsylvania had seen a huge boom in job creation and economic activity tied to drilling operations on private lands in recent years, while exploration on federal lands and waters has been stagnant or falling. He attributed the discrepancy to more business-friendly regulatory and tax policies at the state level, and he encouraged Congress and federal regulators to follow the lead of officials in state capitals.
He urged the Obama administration to open more federal land and water to drilling, but said that this did not have to include national parks and environmentally sensitive areas.
Mr. Gerard bristled at a suggestion that major oil companies benefit from billions of dollars in tax subsidies, saying that the Obama administration’s assertion that the industry enjoys $4 billion in unnecessary tax breaks is a “myth.”
“The oil and gas industry gets no subsidies, zero, nothing,” he said. “We get cost-recovery benefits, much like other industries. You can go down the road of allowing economic activity, generating hundreds of billions to the government, or you can take the alternative route by trying to extract new revenue from industry by increasing their cost to do business.”
He added, “We not only pay our fair share, we pay more than our fair share.”
10 Comments on "Hands Off, Oil Industry Warns Government"
adamc18 on Wed, 9th Jan 2013 1:25 pm
Exactly how do rational people go about ignoring the fact that individuals like this are quite prepared to take the 90% risk that their actions will push global temperatures up by 4 degrees or more and very possibly cause the extinction of our species.
Arthur on Wed, 9th Jan 2013 2:27 pm
“But he cautioned that this rosy future was dependent on the federal government’s not interfering with his industry, by, say, … imposing new environmental regulations on fracking operations”
Not a word about the grave consequences of fracking on the environment. Or rather he implicitly recognizes the weak point of his operation and cautions: “do not go there, nothing to see, walk on”
http://www.youtube.com/watch?v=dZe1AeH0Qz8
If you let this guy have his way the US will end up with a contaminated continent for the benefit of prolonging the carbon age with a few decades at most.
DC on Wed, 9th Jan 2013 3:23 pm
Q/“The oil and gas industry gets no subsidies, zero, nothing,
ROFL!
The real ‘myth’ is that 4 billion a year figure. The industry chose that figure because it represents what the industry was willing to ‘lose’ if the pols gained a spine and actually eliminated some give-a-ways to the O+G cartel. In reality, its at least 10x that amount in the US alone. 40-60b a year is more accurate. And that’s just direct subsidies.That doesn’t even touch bailouts and support of the ARSE complex. (Auto-Retail-Suburban Expansion) complex. The industry really doesnt want anyone to know the true extent of how much they get every single year.
I don’t know why this guy is so worried about it. The auto-oil cartel IS the gov’t of the United Snakes. The puppet presidents ‘cabinet’ is stuffed to rafters with Auto and Oil executives, whose real purpose is to of course, advance there own interests, but mainly to insure ‘elected’ officials dont do anything remotely like promote the public interest. IE limit sprawl, promote rail over cars etc…
econ101 on Wed, 9th Jan 2013 4:50 pm
Al Gore, with the recent sale of his tv network to huge Arab oil interests now has a net worth larger than Mit Romney and his despised wealth! That’s a lot of global warming huckstering if you ask me!
could someone please list or name the subsidies and give aways being showered on big oil? Im not aware of any.
Kenz300 on Wed, 9th Jan 2013 4:55 pm
The oil industry gave us the BP disaster in the Gulf of Mexico and Climate Change………
It is time to transition to safe, clean alternative energy sources.
Second generation biofuels can now be made from trash or waste. We can convert landfills to make biofuels, energy and recycled materials for new products. This is more sustainable than burying the waste.
keith on Wed, 9th Jan 2013 7:28 pm
When we discuss climate change we should argue from the point of view that either we humans do something real to prevent it or Mother nature will do something for us. I believe more people then not agree with me, but the powers that be control the crank right now. How do remove their hand from this crank? They and their families will be the last to feel the effects of whats coming. We can’t assume that they will be the first to do any REAL things to prevent climate change.
Steve Challis on Wed, 9th Jan 2013 8:43 pm
So Mr. Gerard is happy for the oil industry to get no subsidies.
Perhaps the US government should take him up on that and remove all direct and indirect subsidies on Petroleum products.
Arthur on Wed, 9th Jan 2013 8:49 pm
The wheather forecasters in Australia are adapting the legend of their temperature maps with colors representing 52 and 54 degrees Celcius. Just saying.
BillT on Thu, 10th Jan 2013 1:58 am
Arthur, your note is the most important one here. I noticed that article yesterday also. I wonder how the Us or Europe will handle 129 degree F. when it happens? Especially when it is too expensive to use A/C everywhere.
Lets pull our troops and other military support out of oil companies and see how long the petroleum industry survives. That’s one very expensive subsidy. Then there are all the laws that favor big petro, the tax deductions, etc. Oh yes, the oil industry is subsidized into the hundreds of billions every year.
BillT on Thu, 10th Jan 2013 1:59 am
Oops.. “…pull our troops out of oil COUNTRIES…” But then, maybe I was correct the first time…lol.