The New York State Assembly passed a measure placing a six-month moratorium on hydraulic fracturing late yesterday. The state Senate passed the ban in August, and now the legislation will go to Gov. David Paterson for his signature.

API's Chief Economist John Felmy today urged the governor to veto the ban. "Blocking important natural gas development and the creation of new jobs and revenues is not sound energy or economic policy. New York continues to struggle with an economic crisis, and natural gas should be part of the solution to the state's economic problems," John said.

A recent study shows natural gas development in New York's Marcellus Shale region could generate more than $16 billion in economic output, nearly $4 billion in additional tax revenue, and more than 180,000 jobs in New... more »

American voters understand that higher taxes are the wrong prescription for domestic oil and natural gas development. In an election-night poll conducted by Harris Interactive and commissioned by API, 60 percent of voters opposed a tax increase on the oil and natural gas industry, and 54 percent said an increase could destroy jobs.

"Experience and instinct tell them tax hikes harm job creation, and the research agrees," said API's President and CEO Jack Gerard in a news release.

The administration and some members of Congress have proposed raising taxes by eliminating incentives passed by Congress to encourage U.S. oil and natural gas production. An API analysis of a Wood Mackenzie study shows eliminating only the domestic production activities and intangible drilling cost tax deductions c... more »

If you drove during the Thanksgiving Day holiday, you probably noticed that the price of gasoline has increased. Since September, gas prices have climbed several cents per gallon.

Why? API's Monthly Statistical Report for October shows that demand for oil products has climbed, signaling a modest improvement in the economy. As demand rises, it puts upward pressure on the cost of the raw material used to produce gasoline--crude oil.

In the first eight months of 2010, crude oil alone made up 67 percent of the price at the gasoline pump. Refining the crude oil into gasoline and retailing added another 18 percent to the retail price of gasoline. And taxes accounted for the remaining 15 percent.

Before anyone--including each U.S. lawmaker--engages in a meaningful discussion about energy policy, it's important to understand the facts. Although this might seem to be an obvious point, it's one that shouldn't be overlooked especially during this fall's lame duck congressional session.

Rayola used this above slide from the U.S. Energy Information Administration (EIA) showing the government's projection for world energy demand between 2008 and 2035. Note that energy demand is expected... more »

Here is a prime example of what can happen when Congress and the administration tamper with the free market system to impose their will on the American public. Simply put, their meddling can create major headaches for consumers.

At issue is the government's attempt to force-feed ethanol into the nation's gasoline pool. As reported by Reuters, "cellulosic production has not grown as rapidly as Congress had hoped." As a result, the Environmental Protection Agency (EPA) is proposing to lower the cellulosic mandate by 93 to 98 percent below the 250 million gallons set by Congress for 2011.

At the same time, however, the congressional mandate is forcing the need for higher amounts of ethanol in gasoline. To respond to the mandate, EPA is promoting a new fuel - gasoline blended with 15 percent e... more »