Pennsylvania Independent Oil and Gas Association (PIOGA) president Lou D'Amico released a video on Tuesday discussing his belief that a severence tax would be detrimental to the oil and gas industry, as well as the commonwealth.
"The impact of this tax will be felt throughout our industry," D'Amico said. "We can not afford with low prices and the tense regulatory issues that we face, to face an additional 5 percent on top of all of that."
During his campaign, Gov.-elect Tom Wolf called for a 5 percent severance tax on the oil and gas industry to make up for $1 billion that incumbent Gov. Tom Corbett cut from education funds. Wolf defeated Corbett in Tuesday's election.
D'Amico said the PIOGA has been fighting against a tax increase for three sessions now and expect to deal with the same questions in a fourth.
"The reality is this industry is struggling, whether we talk about our conventional producers who have come to a virtual standstill or if we talk about our shell players who are barely making any profit whatsoever," he said. "We have to look at how this is going to affect the commonwealth of Pennsylvania, as well as our industry."