API, NOIA React to House Reconciliation Bill Passage

API, NOIA React to House Reconciliation Bill Passage
The American Petroleum Institute and the National Ocean Industries Association comment on the U.S. House of Representatives passing the reconciliation bill.

At a time when energy prices have risen alongside broader economy-wide inflation, the House reconciliation bill would only exacerbate the challenges facing Americans.

That’s according to Mike Sommers, the president and chief executive officer of the American Petroleum Institute (API), who made the statement after the U.S. House of Representatives passed the reconciliation bill on Friday.

“This bill taxes American energy, restricts access to our own resources and advances the same type of ‘import-more-oil’ strategy that this administration has been promoting as a solution,” Sommers said in an API statement.

“We urge the Senate to reject these misguided policies and focus on climate solutions that both reduce emissions and ensure Americans have access to the affordable and reliable energy this sector delivers every day,” he added in the statement.

Commenting on the development, National Ocean Industries Association (NOIA) President Erik Milito said, “the House budget reconciliation bill does advance smart offshore wind and carbon capture and storage (CCS) policies”.

“These provisions can help the U.S. maximize the economic and environmental benefits of the offshore. Offshore wind provides a generational energy and economic opportunity. The widespread deployment of CCS will be critical for achieving the climate change ambitions and goals that have been established by diverse stakeholders around the world,” he added.

“However, the House language also provides for oil and gas provisions that are nothing more than punitive measures. These include arbitrary new fees that would add millions of dollars in annual operating costs, pricing out U.S. production,” Milito went on to say.

The NOIA president noted that these provisions are a “gift” to higher emitting producers like Russia and China that “wield their energy resources as a geopolitical tool” and added that they would “fundamentally weaken one of America’s most important economic, energy, emissions and national security assets”.

“When the Senate takes up its version of budget reconciliation, it must ensure that the energy provisions are aligned in a way that actually enhances all forms of American energy - including offshore oil and gas - and the multitude of benefits it provides,” Milito stated.

U.S. Secretary of Energy Jennifer M. Granholm said the House passage of the “Build Back Better Act” is the latest step in President Biden’s plan to transform the economy and deliver a sustainable, clean energy future for all Americans.

“From the biggest expansion of affordable health care coverage in a decade to free universal pre-K and the largest investments ever to combat the climate crisis, these sweeping changes and bold investments will uplift the workers, families and communities who have demanded bold, systemic policy change from their government that prioritizes their needs,” Granholm said.

“Congratulations to House leadership and President Biden for this major achievement. Together, with the newly enacted Bipartisan Infrastructure Law, Americans in all pockets of this country will begin to see historic, measurable change that will build our country back better than before as we achieve our climate goals, grow our economy, and create millions of good-paying jobs. We now look to the U.S. Senate to seal the deal on this once-in-a-generation moment for all Americans,” Granholm continued.

To contact the author, email andreas.exarheas@rigzone.com

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