The American Petroleum Institute and other business groups have filed a lawsuit against the US Securities and Exchange Commission its implementation of Section 1504 of the Dodd-Frank Act. SEC’s new rule would require publicly traded US oil and gas companies to release sensitive, detailed payment information about projects that potentially could benefit their overseas national oil companies, API said.
I would venture to say the oil and natural gas industry strongly supports payment transparency. The industry has been working hard to increase transparency for a decade, but this rule could interfere with ongoing efforts by making US firms less competitive against state owned firms in China and Russia that have no interest in transparency.
“This rule is harmful to our energy security and to American consumers, and should not stand.
The SEC’s ‘extraction rule’ will require firms to turn over their playbooks for how they bid and compete.