Energy Tomorrow Blog
Posted March 3, 2015
Posted January 13, 2015
Posted April 16, 2013
LA Times – EPA: U.S. Greenhouse Gases Drop
The newspaper highlights the latest good news from the EPA: Increased use of natural gas, much of it developed with hydraulic fracturing, has helped the United States lower its greenhouse gas emissions 1.6 percent from 2010 to 2011 and nearly 7 percent since 2005.
Alberta Premier Alison Redford’s op-ed argues that Canada is “the safest, most secure and responsible energy supplier to the United States and a reliable trading partner.” This comes after her recent visit to the U.S. advocating approval of the Keystone XL pipeline project. Approving the pipeline “is the choice of reason,” she writes.
Posted April 11, 2013
Let’s dig into the details of the more than $90 billion (over 10 years) in new and targeted tax increases on America’s oil and natural gas companies that President Obama included in his FY2014 budget. Note: The tax provisions below are in no way “taxpayer subsidies” and are not unique to our industry. They constitute standard business deductions (some available to all other industries) and mechanisms of cost recovery – a fundamental and necessary component to a national income tax system. Here we go:
Posted March 20, 2013
Associate editor at The Atlantic Jordan Weissmann had a provocatively titled piece yesterday on taxes and the oil natural gas industry which may have generated some traffic, but it certainly did nothing to contribute to an honest debate. His premise was to identify tax increases on the oil and natural gas industry as a: “safe ground to set up camp for the budget negotiations.”
The US imposes tax on net income, not gross income, which means that all businesses, whether they are farmers, manufacturers or oil companies, are allowed to deduct their normal business expenses from income in calculating their tax due. Accordingly, the oil and gas industry is eligible for business deductions that are the same as or similar to those available to other taxpayers. Contrary to what others may say, the industry does not receive credits, does not benefit of mandates and is not directly subsidized by the federal government. Weissmann’s one-sided opinion piece attempts to state otherwise by identifying specific items – so let’s look at them:
Expensing Intangible Drilling Costs ($13.9 billion): Since 1913, this tax break has let oil companies write off some costs of exploring for oil and creating new wells.
Posted March 13, 2013
A pair of new Energy Tomorrow television commercials feature real people talking about the real effects of raising taxes on America’s oil and natural gas companies – as is being pushed by some in Washington. Two main points:
- Because our economy runs on oil and natural gas, higher taxes on oil and natural gas companies will slow it down.
- Because energy is central to the way Americans live, making energy more expensive by raising taxes on it amounts to a tax on all Americans.
As API executive vice president Marty Durbin noted in a call with reporters today:
Posted October 5, 2012
Posted April 2, 2012
Update: The author has changed the article, without noting so. Original article here. The new article suffers from many the same problems in that it fails to note that the majority of the money involved is through government efforts to lower prices in developing countries. As the IEA notes ending this support will shift "the burden of high prices from government budgets to individual consumers…" and that “…low-income households are likely to be disproportionately affected by the removal…”
We see a lot of false arguments about “subsidies” for the oil and natural gas industry, but this tweet caught us by surprise...
Posted March 26, 2012