March 1, 2018
News release courtesy of TIPRO:
Austin, Texas – The Texas Independent Producers & Royalty Owners Association (TIPRO), a leading oil and natural gas trade association based in Texas, expressed opposition to President Trump’s announcement concerning a 25 percent tariff on steel imports and 10 percent tariff on imported aluminum. The tariffs are expected to apply to all countries and could be solidified next week.
TIPRO’s President Ed Longanecker provided the following statement after the president revealed on Thursday his intent to impose tariffs against imported steel and aluminum:
“The proposed tariffs would significantly increase costs for domestic oil and natural gas producers that rely heavily on steel and aluminum products in their operations, including drilling equipment and pipelines. As the nation’s leading producer of oil and natural gas, and most prominent benefactor of President Trump’s Energy Dominance Agenda, the state of Texas would bear an inordinate burden if this measure were adopted, further hindering our recovery and the positive economic contributions of our industry.
In 2017, TIPRO joined numerous industry organizations publically opposing the proposed tariffs, emphasizing the unintended consequences for domestic energy producers. Specifically, TIPRO expressed concern with potential efforts to force producers to consume only domestic tubular products that would slow the industry’s momentum at a critical time when U.S. producers are competing for—and winning—global market share. Slowing the industry’s growth trajectory exacerbates concerns about U.S. job growth and affordable energy for consumers.
TIPRO also reiterates that U.S. oil and gas industry collectively supports 10 million direct and indirect jobs, with 40 percent of direct industry employment concentrated in Texas. Between 2008 – 2017, approximately $118 billion in state taxes and state royalty payments were paid by the Texas oil and gas industry. These funds have continued to support all aspects of the state economy, including infrastructure investment, water conservation programs, schools and education, and first responders, to name a few.
The Golden Era of American Energy Dominance espoused by President Trump will only be achieved through a consistent and unwavering commitment to domestic energy production. TIPRO remains focused on promoting the unprecedented economic impact of the Texas E&P sector and advancing policies that support the responsible development of oil and natural gas and our ability to fully capitalize on these extraordinary resources.
Our association calls on President Trump to reconsider such plans to impose tariffs on imported steel and aluminum products.”
The Texas Independent Producers & Royalty Owners Association (TIPRO) is a trade association representing the interests of over 3,000 independent oil and natural gas producers and royalty owners throughout Texas. As one of the nation’s largest statewide associations representing both independent producers and royalty owners, members include small businesses, the largest, publicly-traded independent producers, and mineral owners, estates, and trusts. TIPRO membership provides networking and educational forums, marketing opportunities, industry intelligence, and extensive legislative and regulatory resources.