WHAT IS American Petroleum Institute
The American Petroleum Institute (API) is a leading oil and gas industry trade association. It is engaged in public policy and industry lobbying efforts, environment, health and safety regulations, training and certification programs, and establishing industry standards.
BREAKING DOWN American Petroleum Institute
The America Petroleum Institute (API) represents the oil and natural gas industry to the public, Congress and the Executive Branch, state governments and the media. It negotiates with regulatory agencies, represents the industry in legal proceedings, participates in coalitions and works in partnership with other associations on public policy. API’s more than 625 members include large integrated companies as well as exploration and production, refining, marketing, pipeline, and marine businesses, and service and supply firms. API has a domestic focus but has a global dimension with a broad range of programs.
The American Petroleum Institute (API) activities
API conducts or sponsors research ranging from economic analysis to toxicological testing. It collects, maintains and publishes statistics and data on US industry operations, including supply and demand or various products, imports and exports, drilling activities and costs, and well completions. API’s Weekly Statistical Bulletin is its most notable publication. API has led the development of petroleum, natural gas and petrochemical equipment and operating standards. Many have been incorporated into state and federal regulations and are widely cited in international regulations. API also provides quality, environmental, and occupational health and safety management systems certification. API organizes seminars, workshops and conferences on public policy issues. Through API University, it provides training and materials to the oil and natural gas business on regulatory requirements and industry standards.
API’s origins date to World War I, when Congress and the domestic oil and natural gas industry worked together on the war effort. The industry then included the companies created in 1911 after the court-imposed dissolution of Standard Oil and the independents. API was established in 1919 in New York City and moved to Washington DC in 1969. API began to issue weekly statistics in 1920, first for crude oil production. The report, available to the government and the press, was later expanded to include crude oil and product stocks, refinery runs and other data. API’s second effort was to develop industry-wide standards, the first of which were published in 1924. API also worked with the US Treasury Department and congressional committees to develop an efficient and administered way to tax oil assets. In the 1930s, these efforts extended to working state governments. The federal and state governments tax highways and fuels to fund the building of roads, and the industry supported tougher laws against tax evasion.