Letter: Sector the solution, not the problem

President Barack Obama and his allies have long since declared open season on the oil and gas industry. They charge that these companies rake in huge profits but don’t pay their fair share to promote economic growth. That’s simply false. As a resident of Louisiana and daughter of a petroleum engineer, I’m well aware of the tax and regulation increases bestowed on the oil-and-gas industry year after year.

The charge that oil-and-gas companies don’t contribute to our economy is groundless. These businesses support millions of jobs — many right here in Louisiana — and when other industries went to the federal government for bailouts a few years back, so-called “Big Oil” was still putting tax revenue into the U.S. Treasury.

Today, oil-and-gas companies pay tax rates higher than nearly every other sector — an effective rate of more than 41 percent, compared to an average of 26.5 percent throughout the S&P industrial index, according to the Wall Street Journal. Critics also omit that oil-and-gas companies put a good part of their profits to work in our economy. A report by the Progressive Policy Institute positions energy businesses at the top of its list of “investment heroes” with more than $36 billion invested throughout our country in 2011.

Those who blame oil-and-gas businesses for not doing more to spur the economy should look instead at this administration’s failed energy policies. They put our country’s energy security and economic stability at risk every day.

Emily Davenport

public relations consultant
Baton Rouge

Comments

1) Comment by beabea - 10/08/2012

The Progressive Policy Institute report cited by Ms. Davenport puts Exxon Mobil at #3 on its list of "Investment Heroes" with Occidental Petroleum at #6, ConocoPhillips #7 and Chevron at #9 based on the companies' financial reporting from fiscal year 2011--which would be during the third year of an administration Ms. Davenport claims has "long since declared open season" on them. Also, while charging critics with omitting things, she herself conveniently omits any mention of the massive taxpayer-funded subsidies paid out to oil and gas each year. So whatever oil and gas pays in taxes, you can subtract what they get back from the government, i.e. from us, the taxpayer. In fairness to Ms. Davenport, it is her job as a PR consultant to spin things in a way that's most favorable to her client, or in this case, her family. But this letter is another reminder that PR needs to be taken with a big grain of salt. Or perhaps a big leaking salt dome's worth of salt.

2) Comment by shad-o - 10/08/2012

I shed not one tear for the petroleum industry. as they are doing just fine.

3) Comment by DMJ - 10/08/2012

Question: if petroleum is so good for our state...if it pays so much tax revenue and creates so many jobs....why is Louisiana still so dirt poor? Where does the money go. Oh, right...to you and your dad. I'm sure it'll start trickling down any day now.... And notice how this letter says absolutely nothing about the oil industry's efforts to hamstring the EPA, to reduce environmental regulations and continue to deny man-made global warming. And how is the Obama administration guilty of "failed energy policies" when domestic production is at a higher point than at any time during W's 8-year presidency? Hmm.....Try again, Emily.