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Energy Tomorrow Blog

American Energy and Consumers

american energy  energy bills  energy costs  Economy  jobs  gulf  exports  keystone xl pipeline 

Mary Leshper

Mary Schaper
Posted March 3, 2015

NY Times: Sometimes, even the supposed experts can lose track of a billion dollars or two. Or, in this case, $100 billion. While few outside of Texas and North Dakota are complaining about this huge savings that consumers have enjoyed since energy prices began falling last summer, economists have been stumped recently trying to figure out exactly what consumers are doing with the windfall.

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Falling Imports, Energy Costs and Unemployment – Thanks to U.S. Energy

Economy  Energy Security  american energy  jobs  gasoline costs  fracking  hydraulic fracturing  ohio 

Mary Leshper

Mary Schaper
Posted October 13, 2014

Detroit Free Press: Ground zero for America's "shale revolution" in gas and oil production, North Dakota is also the reigning title-holder for lowest unemployment among the 50 states.

There were more unfilled jobs in September than job applications within the state, where oil field workers can make six-figure salaries and even the fast-food restaurants dangle hiring bonuses of $300 or more. The state has been recruiting specifically from Michigan for workers of all stripes and skill levels — hoping to entice entire families to relocate and grow roots.

North Dakota's official 2.8% jobless rate in August is essentially full employment, allowing just about anyone who wants a job to get one. At the same time, Michigan's rate of 7.4% was stuck above the 6.1% national average. (The national rate was 5.9% in September.)

North Dakota's roaring economy has been the envy of state governors and, for proponents of fracking, a shining success story for how an energy boom can produce a job boom, even for workers in professions that aren't directly related to extracting natural gas and oil.

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America’s Energy Renaissance Hinges on Right Policy Choices

american energy  Economy  Energy Security  jobs  lng exports  fracking  gasoline costs 

Mary Leshper

Mary Schaper
Posted October 9, 2014

Columbus Dispatch: Consumers are starting to catch a serious break for a change on energy costs.

 

Gasoline prices in central Ohio are at their lowest level in nearly four years, while the outlook for home-heating costs this winter is better than a year ago.

 

“There’s definitely more money in my pocket,” said Kathy Bury, 58, of Blacklick, in eastern Franklin County.

She tends to buy gasoline $20 at a time. At current prices, that’s three-fourths of a tank, which is much more than a month ago, a contrast that “makes me happy,” she said. 

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Intangible Costs, Real Benefits

energy investment  cost recovery  intangible drilling costs  tax policy  oil and natural gas development 

Mark Green

Mark Green
Posted September 18, 2014

Since its inception the U.S. tax code has allowed taxpayers to recover business costs and be taxed only on net income – the idea being that quick recovery of costs would help spur reinvestment and support business expansion. This, in turn, boosts the economy and serves the national interest.

It is working in energy. Because of the cost of drilling wells and the need to invest in a depleting asset, cost recovery and reinvestment is an important part of the reason America has an energy revolution today. Mechanisms like the one for intangible drilling costs (IDC) help support the entrepreneurial risk-taking and investment that keep the revolution going.

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Revisiting Energy and Taxes

tax rates  intangible drilling costs  cost recovery  investment  jobs creation  economic growth 

Mark Green

Mark Green
Posted August 6, 2014

America’s oil and natural gas industry sends an average of $85 million a day to the federal government in the form of taxes, rents, royalties and bonus payments. Averaged over 2007-2012, the industry’s effective tax rate – income taxes paid to governments, divided by pretax income – was 44.6 percent. That’s well above the averages for other industries over the same time period.

We say all that to say this: Attacks that claim the oil and natural gas industry isn’t paying its fair share and/or that it gets special treatment are ridiculous. Industry is paying its fair share and then some – even as it supports 9.8 million jobs and 8 percent of the U.S. economy.

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Study: Shale Energy Benefits Schools, State and Local Governments

shale energy  shale benefits  energy costs  fracking  economic benefits  energy policies 

Mark Green

Mark Green
Posted June 5, 2014

A new study details the way America’s unconventional energy revolution – oil and natural gas safely developed from shale and other tight-rock formations with advanced hydraulic fracturing and horizontal drilling – is benefiting Americans where they live.

The new analysis by IHS shows that electricity and natural gas cost savings from shale energy is, in turn, saving billions of dollars for the nation’s school districts and state and local governments.

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The Truth on Oil and Natural Gas 'Subsidies'

taxes  tax policy  cost recovery  intangible drilling costs  section 199  foreign tax credit  lifo 

Stephen Comstock

Stephen Comstock
Posted January 29, 2014

Contrary to what some in politics, the media and most recently, the president during the State of the Union, have said, the oil and natural gas industry currently receives not one taxpayer “subsidy,” “loophole” or deduction. Since its inception, the U.S. tax code has allowed corporate taxpayers the ability to recover costs. These cost-recovery mechanisms, also known in policy circles as “tax expenditures,” should in no way be confused with “subsidies” – direct government spending or “tax loopholes.”

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Tax Hike Plan Could Dim One of Economy's Bright Lights

intangible drilling costs  lifo  taxes on oil companies  government revenues 

Mark Green

Mark Green
Posted December 17, 2013

Last month we made some points on a Senate proposal that would impact America’s oil and natural gas industry with higher taxes and costs. Research has shown that delaying industry’s ability to write off intangible drilling costs likely would mean fewer wells drilled, lost jobs and lower energy production. Doing away with the “last-in, last-out” (LIFO) accounting method used by a number of energy companies would require them to redirect cash or sell assets to cover tax payments.

Now API has been joined by more than a dozen other organizations – representing energy producers, refiners, supporting servicers, equipment manufacturers, marketers and retailers – in challenging proposals that could hinder an industry that already sends $85 million a day to the U.S. Treasury.

In a letter to members of Congress the groups say that while efforts to make the tax code less complicated and more competitive are good, raising energy taxes and increasing costs will work against greater industry investment and activity that would provide broad benefit to the U.S. economy.

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Energy Tax Hikes, Impacts and the Great White Whale

intangible drilling costs  tax increases  lifo  job losses  energy production 

Mark Green

Mark Green
Posted November 22, 2013

Today we offer three charts – all associated with the latest congressional bid to raise revenue for the federal government by hiking taxes on oil and natural gas companies.

U.S. Sen. Max Baucus has proposed delaying industry’s ability to write off intangible drilling costs (IDCs) and doing away with the “last-in, last-out” accounting method (LIFO) used by a number of energy companies. More on LIFO below. Here are three charts from Wood Mackenzie’s recent study on the impacts of delaying IDC deductions.

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VIDEO: Fair Tax Policy to Sustain Energy Investments

intangible drilling costs  investments  taxes 

Mark Green

Mark Green
Posted September 18, 2013

Check out the video below of a Fox Business Network interview with API President and CEO Jack Gerard on the tax reform climate in Washington that has some talking about raising taxes on energy companies. The ability to recover the costs associated with finding oil and natural gas in a timely way through the Intangible Drilling Costs provision is especially critical to continuing investments in energy development, Gerard says.

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