American Petroleum Institute (API)
The American Petroleum Institute (API) is a prominent organization in the United States that has been shaping the oil industry since its establishment in 1919. Created in response to the cooperative success seen during World War I, the API aims to unify a historically individualistic sector to minimize government regulation. It plays a critical role in standardizing oil-field drilling and production equipment, and it functions as a key source of industry statistics and information. The API is responsible for establishing various industry standards, including the well-known API gravity unit for measuring petroleum density and the assignment of unique API well numbers for tracking oil wells across the nation.
As the principal lobbying entity for the oil industry, the API conducts analytical studies and addresses pressing issues such as production techniques and the nation’s reliance on foreign oil. Additionally, it has been influential in achieving favorable tax policies and navigating challenges like public skepticism and market fluctuations. The organization also has dedicated departments focused on transportation, refining, and marketing, ensuring comprehensive support for the industry within the political landscape. Overall, the API serves as a critical intermediary between the oil industry and both the public and governmental entities.
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American Petroleum Institute (API)
DATE: Established 1919
The American Petroleum Institute is the leading organization in the United States for establishing standards on oil-field drilling and oil-producing equipment. It is a clearinghouse of oil industry opinion.
Background
Impressed by the success of intra-industry cooperation during World War I, oil industry leaders created the American Petroleum Institute (API) in 1919. The API seeks to coordinate an industry noted for its individualism and thus to avert government regulation as much as possible. The API gathers and periodically publishes statistics on the industry’s operations, promotes the standardization of oil industry equipment, and represents the industry before the public and the government. It establishes standard units of measurement—such as the API gravity unit, used to measure the of petroleum—and it assigns a unique number to each oil well drilled in the United States, known as the API well number.
Impact on Resource Use
The API is the principal lobbying group of the oil industry as a whole and is its center of analytical studies. It establishes committees to investigate and publish information about such problems as hydrocarbon mechanics, petroleum production methods, American dependence on foreign oil, and practices. The API has been successful in most of its endeavors, including securing favorable tax treatment for the oil industry and helping the oil industry through many difficult situations involving public skepticism, oil-company scandals, and oil-price fluctuations. The API maintains departments of transportation, refining, and marketing in Washington, DC.
Bibliography
"API Releases New Policy Roadmap for Incoming Administration and Next Congress to Secure American Energy Leadership and Help Reduce Inflation." American Petroleum Institute, 12 Nov. 2024, www.api.org/news-policy-and-issues/news/2024/11/12/api-releases-new-policy-roadmap-for-incoming-administration. Accessed 26 Dec. 2024.
Gardiner, Beth. "How an Early Oil Industry Study Became Key in Climate Lawsuits." Yale Environment 360, 30 Nov. 2022, e360.yale.edu/features/climate-lawsuits-oil-industry-research. Accessed 26 Dec. 2024.
McGreal, Chris. "How a Powerful US Lobby Group Helps Big Oil to Block Climate Action." The Guardian, 19 July 2021, www.theguardian.com/environment/2021/jul/19/big-oil-climate-crisis-lobby-group-api. Accessed 26 Dec. 2024.