API details impact of gas, oil tariff

American Petroleum Institute (API) officials maintain Section 301 natural gas and oil tariffs have had a counterproductive impact on those industries.

“The U.S. is leading the world in the production and refining of natural gas and oil which is boosting our economy, keeping energy affordable and benefitting American workers,” Stephen Comstock, API director for Tax Policy said during a hearing before the U.S. Trade Representative on Section 301. “Unfortunately, the current trade policies being pursued by this Administration run counter to enhancing our energy dominance throughout the world.”

Comstock said China is currently the third largest importer of American LNG, and the amounts have been increasing to match the country’s rising demand for natural gas.

He also noted the United States is one of the world’s main LNG suppliers, but other countries are capable of supplying China, such as Australia, Qatar, Malaysia, and Russia while suggesting additional tariffs by the Chinese on U.S. LNG will hurt America more than it hurts China and naturally incentivize other LNG suppliers to fill that market.

API is the only national trade association representing all facets of the oil and natural gas industry, which they said supports 10.3 million American jobs and nearly 8 percent of the nation’s economy.