API President and CEO Mike Sommers on Biden Remarks on Gas Prices: Americans looking to lawmakers for solutions, not campaign rhetoric

WASHINGTON, October 31, 2022 – The American Petroleum Institute (API) today released the following statement from President and CEO Mike Sommers in response to President Biden’s remarks on gas prices:

“Rather than taking credit for price declines and shifting blame for price increases, the Biden administration should get serious about addressing the supply and demand imbalance that has caused higher gas prices and created long-term energy challenges. Today, the President proposed to raise taxes on the U.S. natural gas and oil industry that is competing globally to produce the fuels Americans need every single day. Oil companies do not set prices—global commodities markets do. Increasing taxes on American energy discourages investment in new production, which is the exact opposite of what is needed. American families and businesses are looking to lawmakers for solutions, not campaign rhetoric.”

Analysis of a windfall profits tax established in 1980 have found that it decreased domestic energy production and increased reliance on imported oil. According to the Congressional Research Service, the tax reduced domestic production by as much as 8 percent from 1980 to 1988 when it was repealed in part because “it made the United States more dependent on foreign oil.” 

API represents all segments of America’s natural gas and oil industry, which supports more than 11 million U.S. jobs and is backed by a growing grassroots movement of millions of Americans. Our approximately 600 members produce, process and distribute the majority of the nation’s energy, and participate in API Energy Excellence®, which is accelerating environmental and safety progress by fostering new technologies and transparent reporting. API was formed in 1919 as a standards-setting organization and has developed more than 800 standards to enhance operational and environmental safety, efficiency and sustainability.

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