The U.S. oil and natural gas industry is vital to our nation's energy security and economic growth. So are its earnings. As companies announce quarterly earnings, let's clear up common misconceptions about this issue.

MYTH: Oil and natural gas industry earnings are excessive.

FACT: Average industry earnings are in line with other manufacturing industries--about 7 cents per dollar of sales in the last five years. Earnings reflect the size of these companies and the extent of their operations. They are very large entities, which enables them to invest in new projects, compete globally and provide energy for America.

MYTH: Oil company earnings go to oil company executives.

FACT: Earnings reports are good news for the 9.2 million U.S. workers supported by the industry and for the millions of A... more »

Last Friday, API submitted comments on the SEC's proposed rule regarding Disclosure of Payments by Resource Extraction Issuers. The unilateral approach to revenue disclosure proposed by the SEC would give foreign oil and natural gas companies access to confidential, proprietary information that they could use against U.S.-listed companies when competing for crucial energy resources around the globe. Instead, API supports the World Bank-backed Extractive Industries Transparency Initiative approach, which encourages disclosure by all oil and natural gas companies of payments made to foreign governments. To illustrate the potential for competitive harm our letter accompanying the comments included these examples:

Example 1: Country A invites investors to develop its natural resources. Offici... more »

Politico: Energy industry braces for cuts: Hoping their industries will be spared, energy lobbyists are pushing back with warnings that too much tinkering with the status quo will force them to lay off workers and halt projects that are helping get the economy back on its feet. Jack Gerard, president of the American Petroleum Institute, said he was upset with how Obama brought up the oil and gas industry's tax breaks in the State of the Union, especially considering how the idea twice went nowhere in a Democratic-controlled Congress. "The comment, the smirk -- all unnecessary," Gerard said in an interview. "We'll just assume somebody in the speechwriter's department wasn't keyed in to energy and economic reality, and we'll move on from here." While they do record large profits, Gerard coun... more »