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Whereas global oil production exceeds demand by more than 
one million barrels a day, and Iran has promised to pro-
vide an additional 500,000 barrels a day to the world 
market, now that several sanctions have been lifted after 
the recent implementation of the Joint Comprehensive 
Plan of Action; 
Whereas the price of a barrel of oil is currently around $30, 
less than a third of the $90-plus it was selling for 18 
months ago; which would mean the President’s proposal 
would be equivalent to a 33.3 percent tax, making the 
United States Federal excise tax on oil the highest of any 
domestic product; 
Whereas this tax could translate into as much as an addi-
tional 25 cents on a gallon of gas, when the Federal tax 
on gasoline is currently 18.40 cents per gallon; 
Whereas the oil and gas industry accounts for significant em-
ployment and is an even more significant driver of invest-
ment spending and growth along the supply chain, rang-
ing from aggregates to steelmaking and specialist equip-
ment; 
Whereas more than 258,000 people employed in oil and gas 
extraction and support activities globally, including more 
than 100,000 across the United States, have lost their 
jobs since October 2014; 
Whereas every lost oil and gas job leads to an additional 3.43 
jobs cut in other sectors; 
Whereas that means the 114,000 job losses in the oil and gas 
sector wiped out an additional 391,000 jobs in other sec-
tors last year and sliced economic growth to about 2.1 
percent from 2.6 percent; 
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Whereas more layoffs are virtually certain in the months 
ahead in oil and gas production, as well as along the sup-
ply chain and in petroleum-dependent economies, as the 
continued price slump filters through to even less drilling 
activity; 
Whereas the number of rigs drilling for oil and gas has fallen 
from over 1,900 in October 2014, to 744 at the end of 
November 2015, and just 619 at the end of January 
2016, according to oilfield services firm Baker Hughes; 
Whereas manufacturers, for example, announced 37,221 lay-
offs in the past 12 months; 
Whereas shipments of steel in the United States—used to 
make oil and gas pipelines—were down 11.4 percent 
through the first 11 months of 2015 and the industry an-
nounced more than 12,000 layoffs during the past year, 
according to the American Steel and Iron Institute; 
Whereas believing that oil companies will pay the fee with no 
effect on consumer prices requires also believing that the 
producers won’t pass their increased cost on to refiners, 
who won’t in turn pass their costs on to the public; in 
other words, requires suspending belief in basic econom-
ics; 
Whereas this tax could also put American oil companies, at 
a competitive disadvantage with foreign oil companies, as 
imported oil may not face the same treatment; 
Whereas the domestic midstream and downstream stages of 
oil and gas production will be at a competitive disadvan-
tage to their global competitors due to a $10 higher cost 
for every barrel of oil; 
Whereas in combination with a stronger dollar, slowing 
growth in international markets, and an overaccumula-
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HCON 112 RFS 
tion of inventories through much of the economy, the oil 
slump is creating headwinds for manufacturers, freight 
firms, and the wider economy; and 
Whereas the oil and natural gas industry anchors our econ-
omy in terms of jobs, economic activity, and even State 
and local tax revenue in a challenging price environment: 
Now, therefore, be it 
Resolved by the House of Representatives (the Senate 
concurring), That Congress finds that— 
(1) any new tax placed on the struggling oil 
and gas industry will further prevent growth and de-
velopment throughout the sector and encourage ad-
ditional layoffs; and 
(2) the effect of a $10 tax on each barrel of oil 
sold in the United States— 
(A) would raise the price of oil, and by ex-
tension gasoline; and 
(B) would result in a decrease in the con-
sumption of oil. 
SEC. 2. SENSE OF CONGRESS. 
It is the sense of Congress that— 
(1) a new tax should not be placed on oil, and 
(2) in considering future policy, Congress 
should carefully review the detrimental impacts of 
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placing any new taxes on any industry that has seen 
a slash in jobs, revenue, and production. 
Passed the House of Representatives June 10, 2016. 
Attest: 
KAREN L. HAAS, 
Clerk. 
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