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Energy Tomorrow Blog

The Last Obstacle

keystone xl pipeline  president obama  infrastructure  investment  economic benefits  job creation  nebraska  state department  canada  congress  refinieries 

Mark Green

Mark Green
Posted January 10, 2015

Throughout the Keystone XL pipeline’s long wait for federal approval, President Obama has used one excuse after another to deflect responsibility for blocking a project that polls in the 70s with the American people, one that would support thousands of U.S. jobs and help move the country closer to North American energy security. All along the way the president could have exercised his authority to say yes to all of the above but deferred instead.

The president said environmental questions needed answers, and they were provided by his own State Department, which cleared Keystone XL in five separate environmental reviews.

The president said the cross-border approval process – required because Keystone XL would cross the U.S.-Canadian border – needed to run its course. It did and then some, stretching now to more than six years when historically, cross-border approvals are granted in 18 to 24 months.

The president said Nebraska needed to work out the pipeline’s route through that state, which it did. Then the president said the state’s Supreme Court would have to settle a legal challenge over the re-routing process.

On Friday, Nebraska’s high court rejected that challenge, confirming the assessment of the state Department of Environmental Quality and the governor’s recommendation to the State Department – leaving the project with only one remaining obstacle: President Obama.

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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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American Energy For Our Lives, Our Futures

oil and natural gas  fossil fuels  lng exports  global markets  domestic production  investment 

Mark Green

Mark Green
Posted June 20, 2014

Houston Chronicle: Oil, natural gas and coal have boosted living conditions around the globe, but policies to replace those fossil fuels "with inferior energy sources" could undermine those improvements, a former Texas environmental regulator argues.

In a 36-page paper - "Fossil Fuels: The Moral Case" - Kathleen Hartnett White, former chairman of the Texas Commission on Environmental Quality, insists that access to oil, natural gas and coal are inextricably linked with prosperity and well-being.

Policies targeting heat-trapping greenhouse gases - including the Environmental Protection Agency's new plan for throttling carbon dioxide emissions from existing power plants - overlook "the inestimable human benefits of fossil fuels," White says.

"Energy-dense, abundant, versatile, reliable, portable, and affordable, fossil fuels provide over 80 percent of the world's energy because they are superior to the current alternatives," White writes.

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Investing in Energy Infrastructure, Investing in America

infrastructure  energy investment  oil and natural gas development  economic growth  pipeline construction  storage tanks 

Mark Green

Mark Green
Posted April 15, 2014

Last month a new study said more than $640 billion in energy infrastructure investments will be needed in the U.S. over the next two decades. Needed are pipelines, pumps and other infrastructure to keep pace with expected increases in domestic oil and natural gas production, the ICF International report said – much of it coming from energy reserves found in shale and other tight-rock formations through advanced hydraulic fracturing and horizontal drilling. ICF:

“Sufficient infrastructure goes hand in hand with well-functioning markets. Insufficient infrastructure can constrain market growth and strand supplies, potentially leading to increased price volatility and reduced economic activity.”

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Energy Works for America

oil and natural gas development  job growth  economic growth  hydraulic fracturing  horizontal drilling  shale energy  investment 

Mark Green

Mark Green
Posted February 25, 2014

The energy industry is working for America. A new Manhattan Institute report finds that in the slowly recovering U.S. economy the oil and natural gas industry is creating jobs and generating broad economic stimulus. Top findings:

  • While overall U.S. employment has yet to return levels predating the 2008 recession, the number of oil and natural gas jobs has grown 40 percent since then.
  • The U.S. energy revolution is almost entirely the result of development by more than 20,000 small and midsize businesses. The typical oil and natural gas firm has fewer than 15 employees.
  • Industry jobs are geographically dispersed. Sixteen states have more than 150,000 jobs in the oil and natural gas sector.

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Time to Energize the Economy

regulation  permitting  investment  keystone xl pipeline  renewable fuel standard 

Mark Green

Mark Green
Posted January 8, 2014

During Tuesday’s State of American Energy address, API President and CEO Jack Gerard sketched out a more secure energy future for the United States – based on increased access to domestic oil and natural gas reserves, industry technology and ingenuity and a business/investment climate that allows development to go forward.

Let’s focus on that last part, which is less a request for government to do something than simply asking it to avoid hindering safe and responsible energy development through misguided policies and overreaching regulation.

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Investment Heroes of 2013: Energy Is a “Bright Spot” for U.S. Investment

Economy  investment  Industry 

Mary Leshper

Mary Schaper
Posted September 26, 2013

The promise of American energy is something we have written about a lot on this blog. From the millions of more jobs the industry could support to the economic lift to local economies, energy benefits are real and tangible.

So a blog post from the Progressive Policy Institute’s Diana Carew caught our attention. Carew highlights the U.S. Investment Heroes report, in which eight of the top 25 U.S. Investment Heroes of 2013 were energy companies. Carew:

“…the sheer magnitude of the investments by these companies means the contribution of the energy sector to economic growth should not be ignored or discounted in the larger conversation… our research found that of the three categories, energy companies were by far making the biggest bet on America’s future.” 

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American Energy – And Tax Fairness

energy  investment  tax  fairness 

Mark Green

Mark Green
Posted April 10, 2013

American Energy has been a positive story these past few years, thanks in large part to big innovations, and big investments made by America's oil and natural gas companies.  Thanks to America’s energy revolution, domestic oil production is higher than at any time in the last 20 years,  and net imports are at a 20-year low.  Meanwhile, natural gas production is at an all-time high, increasing our energy security and lowering emissions.  All while the industry is leading the way in job creation during what have been some rough economic times.

The industry is proud to be investing in America’s future, which is why we are puzzled today that the new budget from the White House, again, calls for increased energy taxes that could set back some of the progress we have made.

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Americans: Don't Raise Energy Taxes

access  investment  poll  taxes 

Mark Green

Mark Green
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.

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