Dear Chairman Wyden and Ranking Member Crapo, The undersigned trade associations represent all segments of the oil and natural gas sector ranging from family-owned businesses to the largest multi-national enterprises operating around the world. We write to voice our uniform opposition to proposed changes to the Internal Revenue Code (“the Code”) in the Clean Energy for America Act, which are aimed at the oil and natural gas sector. Rather than “leveling the playing field,” these proposed changes would necessarily result in fewer jobs, higher energy costs for American families, and the loss of market share to foreign competitors, like the state-owned enterprises from China and Russia.
American families and businesses are still recovering from the tremendous economic pain inflicted by the COVID-19 pandemic, and the oil and natural gas industry is a major contributor of job creation and investment in communities across the country. More than ten million jobs in the U.S. are associated with the sector, with direct industry jobs paying nearly double the national private sector average. Furthermore, for every oil and natural gas industry job, an additional 2.7 jobs are also supported. These jobs are found in the restaurant, hotels and hospitality, and transportation sectors. All of these economic sectors have been severely impacted by the ongoing COVID-19 pandemic. Legislation intended to punish the oil and natural gas sector would inevitably punish these workers too.