Energy Tomorrow Blog
Posted October 27, 2020
Three points about Vice President Joe Biden’s pledge, if elected, to deny the natural gas and oil industry the use of growth and investment provisions in the tax code that are available to virtually the entire U.S. manufacturing sector – basically, singling out our industry for higher taxes.
1. Our industry is strongly invested in the U.S. economy, its infrastructure and workforce through spending today and in the future.
2. The ability through tax deductions to recover costs associated with job creation and other operational investments is critically important to seed energy development in the future, to create new jobs and help drive economic growth.
3. The U.S. natural gas and oil industry pays its fair share in taxes – and then some – while delivering safe, affordable and reliable energy that Americans count on every day.
Posted May 21, 2019
Having already shelled out $2.2 billion for the federal tax credit for purchases of electric vehicles (EV) between 2011 and 2017, U.S. taxpayers could see that cost increase seven-fold over the next decade – while yielding negligible results, according to a new study.
Coupled with the fact that upper-income households have bought most of the EVs sold in the U.S. (and benefited from these tax subsidies), the report continues to raise questions about the EV subsidy and legislation that would expand it.
Posted November 30, 2018
With the Edison Electric Institute celebrating 1 million electric vehicles on U.S. roads with a forum event in Washington, D.C., let’s talk, again, about some EV realities – which is important as the buzz around EVs grows. Let’s discuss subsidies, real consumer costs, emissions and batteries.
Posted September 26, 2017
We support all-of-the-above energy – the concept that America is strongest and its citizens are best served when all of our country’s energy sources play their part. We’re also for the important role markets play in determining energy sources, because markets reward innovation, spur efficiency, lower prices and work to benefit consumers. That said, a new study that basically argues market-distorting subsidies enjoyed by some energies should be followed by market-distorting subsidies for others makes little sense.
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 January 30, 2012
In the video below API tax policy advisor Brian Johnson explains why rhetoric about oil and natural gas companies benefiting from taxpayer subsidies is just that, rhetoric.
Creating much of the confusion is the way terms like “subsidies” and “deductions” get used interchangeably. Does the oil and natural gas industry benefit from taxpayer subsidies? “Nothing could be further from the truth,” Johnson says. Take a look:
Posted January 27, 2012
One of the most important things to know about producing oil on federal lands is that it takes time. Lots of it. As this chart developed by API illustrates, it’s up to a decade from the time a lease is won at auction to the first actual production of oil. If you include pre-lease sale studies and evaluation, which have to be done before companies bid on federal leases, that’s a couple more years.
Posted May 17, 2011