OK, so the administration is targeting tax code provisions that historically have encouraged domestic oil and natural gas exploration and development. The idea is to eliminate certain deductions currently allowed to energy companies and other industries - although the administration's only talking about ending them for oil and natural gas - and direct $4 billion to other purposes.

While the administration argues more taxes are needed because of higher gasoline prices, there's simply no economic connection between the two. "Raising taxes on oil and natural gas companies - or even a handful of the biggest U.S. energy companies - won't reduce gasoline prices," API President and CEO Jack Gerard told reporters recently. So why do it? Politico Pro's Morning Energy explains (subscription): "Democ... more »

With the price of crude oil driving the cost of gasoline up, Americans may think little can be done about prices at the pump. Not so. A renewed focus on tapping American sources of oil would send an important message to the global market and, long-term, will help with demand pressures forcing crude prices higher.

That's a key takeaway from API President and CEO Jack Gerard's "Newsmakers" conversation with reporters on C-SPAN. "The message the Congress needs to send the marketplace right now is that help is on the way," Gerard said of new pro-exploration legislation now under consideration. The interview with reporters Dina Cappiello of the Associated Press and Jim Snyder of Bloomberg News aired Sunday. Take a look:

Highlights:

• Gasoline prices are tied to the price of crude oil, whi... more »

Editor's Note: API President and CEO Jack Gerard applauded members of Congress who today voted to preserve American jobs by blocking EPA from regulating greenhouse gases. Gerard noted that while no single amendment won enough votes to pass in the Senate, "more than 60 Senators - an overwhelming majority - voted in one way or another to keep the EPA from moving forward." Gerard also called on President Obama to work with this bipartisan group to come to an agreement:

"Today is another step toward victory for American consumers who can't afford EPA's unnecessary regulations that could raise the cost of the energy and destroy jobs. Today's votes show that a growing bipartisan coalition recognizes that Congress, not unelected agency officials, should be setting the energy and economic poli... more »

Editors Note: Earlier today, American Petroleum Institute President and CEO Jack Gerard responded to President Obama's press conference on the administration's energy policy options which failed to address the most important energy challenges facing our nation:

"Long-term problems call for short-term leadership. Suggesting that we rely on other nations to solve our energy challenges is irresponsible and will not increase our energy security. The Obama administration continues to delay or defer action on developing our domestic resources of oil and natural gas at every turn.

"The trend is alarming. The administration has postponed lease sales in offshore areas. It has cancelled lease sales in onshore federal lands. It has extended permitting timelines for current leases and added unneces... more »

On January 4th at the State of American Energy event, API president Jack Gerard released a study by Wood Mackenzie that compared the impact of two scenarios: raising government revenues from fees and payments associated with increased access to areas that are currently off-limits to oil and natural gas development; and raising government revenues from an additional $5 billion per year in taxes on the industry. The results revealed that not all revenue is created equal.

Comparing the total government revenue impact from the two scenarios (access versus taxes, for the period between 2011 to 2025) shows increased access generates an estimated $150 billion in additional government revenue. Under the higher taxation scenario, net revenues are estimated to decrease by $128 billion. In short, the... more »