23 March 2009 00:49 [Source: ICIS news]
SAN ANTONIO, Texas (ICIS news)--National Petrochemical and Refiners Association (NPRA) president Charles Drevna on Sunday slammed the Obama administration’s proposal to repeal manufacturing tax incentives for the US oil, refining and gas industry.
The Section 199 federal tax deduction promotes much-needed investment in domestic energy infrastructure and encourages refining capacity expansions and domestic oil and gas production, Drevna told reporters at the 107th annual NPRA meeting.
“The elimination of these measures would only undermine energy investment at a time when policymakers insist upon more,” Drevna said.
With demand for gasoline continuing to grow each year, US refining capacity is already significantly strained despite multi-billion dollar reinvestments by the industry to expand it, the NPRA said recently.
Regarding climate change initiatives such as a cap-and-trade scheme that may place a huge cost on refiners, Drevna said the oil industry should not be used as a “piggybank” for the US government.
“Given the complexity of the [climate change] issue and the current economic situation, maybe we should get our own house in order first,” Drevna said, calling for sound environmental, science and economic policy.
“We are part of the solution, not part of the problem,” Drevna said.
To discuss issues facing the chemical industry go to ICIS connect
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|