Dear Friend,

In his State of the Union address this week, President Obama expressed support for more domestic energy development. Citing new government projections that the United States will increase domestic production of oil and natural gas by 2035, he also took credit for increased domestic production in recent years. But oil and natural gas production requires years of planning and investment and today’s production is a result of policy and company investment decisions made years ago.

We welcome the president’s focus on domestic energy development, but his current policies suggest we should wait for his actions to match his words. A few examples:

• While the president praises shale natural gas development, more than half a dozen federal agencies are considering new regulation of hydraulic fracturing, the technology necessary to develop 70 percent of our future natural gas production.
  
  
• While promoting domestic oil and natural gas production in his speech, the president again proposes new punitive taxes on the very companies that make that production possible – and that already contribute some $86 million every day to the federal treasury in taxes, royalties, rental payments and other fees.
  
  
• While acknowledging that federal lands should be available for development, his administration is slowing down the processes that make that development possible.
  
  
• And while he calls for increased trade with reliable partners, he shuts down a critical, job-creating project that would have strengthened our energy partnership with Canada, already our largest and most reliable trading partner.

We look to leaders to make the right decisions so that we can continue to make this country more energy secure. We hope the president will take this opportunity to make the necessary course correction in energy policy so we can produce even more, here at home, of the oil and natural gas we will need. Our industry is ready to join him to make it happen.

Sincerely,

Jack N. Gerard
President & CEO
API