IRA Contains Bad that Outweighs Good for U.S. Oil & Gas Producers; Now is the Time to Encourage America’s Leadership as the Global Energy Powerhouse

WASHINGTON – The Independent Petroleum Association of America (IPAA), which represents independent oil and natural gas producers and service companies across the United States, released the following statement in response to the passage of the budget reconciliation legislation, the “Inflation Reduction Act,” in the U.S. House of Representatives:

Barry Russell, IPAA President & CEO: “While there is some good in the reconciliation bill, including provisions that help offshore energy production and facilitate carbon capture development, the bill will harm the ability of America’s oil and natural gas producers to successfully operate to their potential. In addition to a methane tax that singles out the oil and natural gas industry, the legislation creates disincentives to oil and natural gas production on federal lands at a time when our country needs more energy, not less. The IRA adds costs and regulations to producers when the federal government should be taking actions to support increased American energy production. This bill will exacerbate supply concerns at a time of high crude and gasoline prices; it will not bring greater stability nor help Americans with inflation.”

IPAA partnered with industry groups in writing to members of Congress opposing the Inflation Reduction Act:

8/11/2022: Letter to House Speaker Pelosi and Minority Leader McCarthy from nearly 60 trade associations

8/9/2022: Letter to House Ways & Means Committee Chairman Neal and Ranking Member Brady from groups representing the small and mid-sized exploration and production industry

8/4/2022: Letter to all senators opposing the inclusion of a tax on the financial statement income of certain businesses (“book tax”) in the IRA from a broad coalition of more than 130 business trade groups

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