As API's Jack Gerard pointed out in a Roll Call op-ed yesterday, several special interest groups are engaged in a campaign against the oil and natural gas industry.

It appears these groups are hoping to use the Gulf oil spill to inflict as much damage as possible on the industry through the imposition of higher taxes. To advance their cause, some groups often claim that the industry is highly subsidized and doesn't deserve tax breaks or deductions.

A frequent target in this campaign is Section 199 of the Tax Code, which encourages job retention and growth in the United States. Congress enacted this provision in 2004 to provide a deduction to taxpayers engaged in manufacturing, production, growing or extraction activities. The deduction is available to ALL U.S. manufacturers, including oil... more »

Editor's note: In a Roll Call op-ed that ran today, API President and CEO Jack Gerard urges Congress not to make hasty, legislative and regulatory decisions following the Deepwater Horizon incident that could unfairly penalize oil and natural gas companies. Jack's comments are below:

The oil spill in the Gulf of Mexico has created understandable new concerns over offshore oil and natural gas operations, and Americans are right to demand assurances that offshore operations are safe and not detrimental to our environment.

The oil and natural gas industry understands that, and our pledge from the very beginning has been to work day and night to help BP stop the leak, clean up the spill and find out what happened so we can put in place lasting solutions. Only then can Americans once again have... more »

As we've mentioned on this blog many times, energy development is a primary driver of job creation. Developing the nation's abundant oil and natural gas resources could create tens of thousands of additional jobs.

A new Gallup poll proves this point and demonstrates that energy-producing states are among the best in job creation.

North Dakota has been breaking oil production records and sits atop Gallup's Job Creation Index. The Index also shows that the "energy-producing states of Louisiana, Oklahoma, and Texas are in the top 10 state job markets for the first half of 2010, as they were in 2008 and 2009."

Alaska, another state where energy development is crucial, made the list in addition to Pennsylvania and West Virginia--two states that saw 57,000 new jobs last year from Marcellus Shal... more »

In the wake of the Gulf oil spill, some in Washington have called for billions in new taxes on America's oil and natural gas companies. These calls may increase as companies begin announcing second-quarter earnings next week.

Earnings reports will likely focus on only half the story--profits earned. But what do the numbers really mean?

There's no doubt that strong earnings are good news--it means higher economic growth, because our industry contributes $1 trillion to the U.S. economy.

And when oil and natural gas earnings are up, who benefits?

• Millions of American workers. The industry supports more than 9 million jobs. That's a lot of jobs, especially given the current high unemployment rate.

• Millions of people who own stock in our companies. These include people with IRAs and 401k pla... more »

Natural gas production in the Marcellus Shale could generate nearly $6 billion in government revenue, 280,000 new jobs and more than 18 billion cubic feet of clean-burning natural gas per day, according to a new study.

The study--"The Economic Impacts of the Marcellus Shale: Implications for New York, Pennsylvania, and West Virginia"--is authored by Timothy J. Considine, Ph.D. of Natural Resource Economics, Inc., and expands on a recent Penn State analysis, which found similar economic benefits from developing the shale play.

Also among Considine's findings:

• Marcellus shale production grew considerably in 2009, adding 57,000 new jobs mostly in Pennsylvania and West Virginia.

• Development of the Marcellus formation could mean $24 billion in total economic value to the region, which would... more »