News Media Contact:
Nicole Daigle / Jeff Eshelman
202.857.4722 / 800.433.2851

For Immediate Release
January 28, 2010

WASHINGTON - During his first State of the Union address before a joint session of Congress last night, President Obama highlighted the need for Washington to make "tough decisions about opening new offshore areas for oil and gas development" and the need for "more production."

Barry Russell, president and CEO of the Independent Petroleum Association of America (IPAA), issued the following statement today in response to the President's remarks and in anticipation of his forthcoming budget:

"As the President referenced last night, his Administration will soon present its 2011 budget to the Congress. Last year, the President's budget called for more than $36 billion in new taxes on American oil and gas production. These punitive taxes would reduce investment in new US production by 20 to 40 percent. And, it could drive down US oil production by 20 percent and natural gas production by 12 percent; potentially killing thousands of jobs. If the President is sincere in his efforts to encourage responsible American energy production and ensuring that job creation is the number-one priority, these damaging tax hikes must be taken off the table.

"With one in 10 Americans still out of work, President Obama was right to say last night that 'Jobs must be our number-one focus in 2010.' We couldn't agree more and are eager to work with his Administration and leaders in Congress to craft commonsense policies that will create good-paying oil and natural gas-related jobs through increasing access to more American energy and ensuring that higher taxes do not discourage US energy production.

"A clear majority of Americans support increasing access to more homegrown energy reserves, especially offshore. And it was heartening to hear the President convey his support of such sound initiatives that will help create tens of thousands of good jobs, drive down foreign imports and stabilize energy prices for struggling families and seniors.

"The US oil and gas industry is responsible for nearly 9 million jobs nationwide. Independent producers - who on average employ only 12 workers - will continue to play a key role in driving economic growth to ensure that America recovers from this generational economic downturn."

READ MORE    

• President Obama: "But to create more of these clean energy jobs, we need more production, more efficiency, more incentives. And that means building a new generation of safe, clean nuclear power plants in this country. It means making tough decisions about opening new offshore areas for oil and gas development." (1/27/10)
  
• Release: Webb, Warner Call on Interior Dept to Expedite Steps for Exploration and Development of Offshore Oil & Gas Resources
  
• Fact Sheet: New Natural Gas and Oil Taxes Would Crush America's Clean Energy and Energy Security
  
• Rasmussen Reports (12/16/09): "A new Rasmussen Reports national telephone survey finds that 68% of U.S. voters believe offshore oil drilling should be allowed.
  
• Release: President's Call for Massive Tax Hikes on American Energy Producers Will Cut American Production, Increase Foreign Dependence