Energy To Keep America MovingÖ
At the center of America's oil and natural gas industry are the hundreds of thousands of hard-working men and women who work to safely refine, transport and market the petroleum products that keep America moving.Read More
About Those Tax Breaks for Big Oil ...
President Obama has been telling America for months that special tax breaks for the oil and gas industry must come to an end. The presidential demand always prompts puzzled gazes among tax and energy-industry experts, who ask: What special tax breaks?Read More
Gas Prices Up 9 Cents a Gallon
A new rule introduced by the U.S. Environmental Protection Agency could raise gas prices at the pump by anywhere from a penny to 9 cents a gallon while cutting back on automobile emissions.Read More
State Gasoline Tax Reports
Motor fuel tax information for all 50 states detailing changes and calculating a nationwide average. The nationwide average tax on gasoline is 48.8 cpg, down .5 cpg from the October 2012 study. The federal tax on gasoline is 18.4 cpg. The average state excise tax is 21.0.Read More
Why I Donít Ride a Unicorn to Work
It isnít because itís too far to work. Nor is it because of the rain & I might get wet. It isnít because the powerful automobile lobby has convinced me that driving a car to work is a better option for me. No, itís a bit more fundamental than that. I donít ride a unicorn to work because...Read More
A Strong Domestic Refining Industry
More than 50 companies own and operate 148 refineries in the U.S. but excessive U.S. regulation could threaten the ability of some refineries to continue operating domestically, and could result in substantial losses in employment and tax revenue.Read More
Oil & Gas Impact on US Economy
Total labor employment income was $580 billion in 2011, or 6.1 percent of total US labor income. Total value added generated by the industry was $1.1 trillion, or 7.3 percent of US gross domestic product.Read More
Key Terms and Definitions
CSS: Carbon Capture and Sequestration refers to the effort to capture large scale CO2 emissions at the point of origin, an example of which is the emissions produced at a coal-fired electrical plant. Once captured the CO2 would be permanently stored in subsurface saline aquifers, reservoirs or other sinks. The approach is to permanently reduce the overall amount of free CO2 in the atmosphere. There is an opportunity to apply this type of technology to the Canadian Oil Sands operation to lower the overall carbon footprint of Canadian Oil Sands.
Cap & Trade: Cap & Trade is an approach to limit the amount of industrial emissions, in the current environment the focus is on limiting CO2 emissions. The government would set a cap on the amount of CO2 that could be emitted, and may continuously lower the cap over multiple years. Companies are issued permits and need allowance credits for the amount of CO2 that they emit. The industries’ total emissions must fall at or below the cap. If a company is able to operate without the need for all of their allowances, they can sell their extra allowances to companies that are exceeding their allowance credits. The trade portion of the proposal sets up a market for the secondary trade of allowances. Those who are more efficient at reducing emissions are able to sell extra allowances to buyers who are not as efficient. There are two ways to distribute the initial allowances. In the European implementation, the allowances were distributed to carbon producers without a required fee. In contrast to that approach, the current proposed US method is to charge carbon producers a set fee for their initial allowances and to use the majority of those proceeds on other non-energy related programs.
In Marathon’s view, a cap-and-trade approach controls the quantity of emissions rather than price; it lacks
transparency and it is essentially a hidden tax on American consumers. In addition, this approach is highly
susceptible to market speculation which can cause extreme market price volatility to the detriment of all energy
producers and consumers.
Marathon’s perspective is that a carbon tax is more stable,
transparent and equitable across all producers and users of energy. In addition, it reduces the chance of
picking winners and losers and it could be adjustable over time with minimal volatility. Furthermore, Marathon
believes a substantial amount of the revenues generated through a carbon tax should be directed toward the development
and application of technologies that will minimize the impact of fossil fuel use on the environment, as well as
emerging alternative energy technologies.
Oil & Natural gas: Supporting the Economy While Paying Our FAIR SHARE
API, April 23, 2013
The oil and natural gas industry supports America like no other industry.Read More