Energy Tomorrow Blog
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 28, 2013
Posted March 21, 2013
New from the U.S. Energy Information Administration:
Monthly crude oil production in the United States is expected to exceed the amount of U.S. crude oil imports later this year for the first time since February 1995. The gap between monthly U.S. crude oil production and imports is projected to be almost 2 million barrels per day (bbl/d) by the end of next year—according to EIA's March 2013 Short-Term Energy Outlook.
Posted March 21, 2013
A new Harris Interactive national survey of registered voters finds that big majorities think higher taxes on the industry – as have been proposed by the administration and some in Congress – would be harmful to consumers and the economy. What’s more, respondents believe the idea is fundamentally unfair.
Posted March 1, 2013
We say opportunities for oil and natural gas development in federally controlled areas – onshore and offshore – have been limited. Some are saying that’s false. Let’s look at the facts.
Claim: 70 percent of undiscovered oil and natural gas on federal lands is available for leasing and development.
Fact: 83 percent of areas controlled by the federal government are closed to oil and natural gas development.What we have here is some sleight of hand with terminology. We’ll use the offshore situation to illustrate. During last year’s State of the Union address the president said he was directing the administration to open up more than 75 percent of America’s offshore resources for development.
Posted February 28, 2013
Main points from White House energy advisor Heather Zichal in an update of the administration’s positions on energy and environmental policy at an event this week hosted by the Center for Strategic & International Studies:
- Safe, reliable, affordable energy is the lifeblood of America’s economy and is fundamentally linked to U.S. security in the world.
- America’s energy narrative has been rewritten – chiefly due to innovations that have launched the shale oil and natural gas revolution – from one of scarcity to one of abundance.
- The administration’s chief economic goal is to create more middle-class jobs, and energy is and can continue to be a key driver of job and economic growth.
Posted February 26, 2013
The White House is continuing the drum beat for higher taxes on oil and natural gas companies – oddly, as a reaction to higher gasoline prices. Press Secretary Jay Carney this week:
“Anybody fill up their gas tank this weekend? Think the oil and gas companies can maybe afford to give up their taxpayer – special interest break? I think most Americans would say yes.”
Let’s think this through. Gasoline prices have been rising – mostly because of underlying increases in the cost of crude oil due to higher global demand for oil – and the White House press secretary’s response is to connect gasoline prices with a tired proposal to raise taxes on the producers of gasoline.
Posted February 22, 2013
Gasoline prices have been climbing. The U.S. Energy Information Administration (EIA) reports:
The average U.S. retail price for regular motor gasoline has risen 45 cents per gallon since the start of the year, reaching $3.75 per gallon on February 18. Between January 1 and February 19, the price of Brent crude, the waterborne light sweet crude grade that drives the wholesale price of gasoline sold in most U.S. regions, rose about $6 per barrel, or about 15 cents per gallon.
Posted February 21, 2013
While the White House talks again about raising taxes on oil and natural gas companies, let’s look at a chart that captures the starkly different outcomes – in terms of revenue for government – from two policy paths: higher energy taxes vs. increased energy development:
Posted February 15, 2013
Of the energy-related lines in the president’s State of the Union address earlier this week, none stood out more than this one:
“… the natural gas boom has led to cleaner power and greater energy independence. That's why my administration will keep cutting red tape and speeding up new oil and gas permits.”
Certainly, the president is right, that the development of natural gas – especially from shale, developed with hydraulic fracturing – and oil are a big part of shrinking imports and cleaner air.
First the environment. We’ll keep saying it: Increased use of natural gas is a major factor in the reduction of U.S. carbon emissions to 1992 levels, which is allowing the U.S. to lead the world in emissions reduction, according to the International Energy Agency – all while producing more than ever before.