Mr. Erik Milito - The House Committee on Natural Resources ...

approach, we continue to see proposals to increase taxes on the industry,
decisions that reduce opportunities for leasing and resource development,
processes that string out permitting, and continued regulatory uncertainty. We
have provided a three-page summary for the subcommittee’s consideration that
outlines more than 20 key decisions that propose new taxes or otherwise
prevent, delay or obstruct oil and natural gas development.
This makes no sense. <strong>The</strong> United States has some of the largest reserves of
oil and natural gas on the planet and we need a comprehensive energy policy that
supports increased development – something most of the public supports. <strong>The</strong>
industry has the capital, technology, and commitment to safe and responsible
development to make it happen the right way.
<strong>The</strong> Administration continues to propose tax increases to the industry,
which is completely contrary to its recent statements that suggest it supports U.S.
oil and natural gas development. And we must be clear, these proposals would
raise taxes on production by eliminating tax deductions – not subsidies – that are
similar to or the same as those that many taxpayers – including companies like
Apple Computer, the New York Times, and General Electric - avail themselves.
We do not suggest increasing taxes on any particular company or sector; we
simply believe these proposals amount to discriminatory tax policies against the
oil and gas industry and would significantly hurt rather than help the U.S.
economy. In fact, two recent studies by Wood Mackenzie conclude that it is
through increased access to domestic oil and natural gas—rather than increased
taxes on the U.S. oil and natural gas industry—that provides the best strategy for
increasing government revenue, jobs and energy production.
U.S. oil and natural gas companies are a major force in our economy and,
with the right policies in place, could drive even greater economic benefits. <strong>The</strong>se
companies produce most of the nation’s energy, put millions of people to work
and deliver billions in taxes and royalties to our state and federal governments.
<strong>The</strong> studies show increased access to areas currently off-limits would create jobs,
grow the economy and dramatically increase revenues to the Treasury, at a time
when the U.S. deficit is of national concern, while increased taxes would take us
backwards.
Increased access to American and Canadian supplies could (by 2020) create
1,100,000 jobs, deliver $127 billion more in revenue to the government, and
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