Energy Tomorrow Blog
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.
Posted December 13, 2013
Last week we posted on a new study showing tremendous economic and energy benefits to opening the U.S. Atlantic Outer Continental Shelf (OCS) to offshore oil and natural gas development. The folks at the National Ocean Industries Association have a video out that captures the study’s highlights in a little over a minute.
Posted November 19, 2013
The Interior Department says it disbursed more than $14.2 billion in revenue generated by energy production during the federal fiscal year that ended Oct. 30 – a $2 billion or 17 percent increase over the previous year. The increase included $2.77 billion in bonus bids for new oil and natural gas leases in the Gulf of Mexico. Interior Secretary Sally Jewell:
“Domestic energy production infuses funding into communities across the United States that creates American jobs, fosters land and water conservation efforts, improves critical infrastructure, and supports education. The funding reflects significant energy production from public resources in the United States and serves as a critical revenue stream for federal and state governments and tribal communities.”
Interior said revenues were distributed to state, local, federal and tribal accounts for reclamation, conservation, recreation and historic preservation projects. Local governments use these revenues for needs ranging from funding schools to infrastructure improvements, the department said. More than $8 billion was sent to the U.S. Treasury to fund programs for the entire nation.
Certainly, this is good news. Increased production of U.S. oil and natural gas results in job creation and economic stimulus, as well as more revenue for governments in the form of income taxes, rents, royalties and bonus payments. Every day the oil and natural gas industry delivers about $85 million to the U.S. Treasury. Our effective tax rate of 44 percent (2007-2012) leads other industries.
Posted October 17, 2013
With the ongoing budget debate in Washington serving as backdrop, let’s review ways America’s oil and natural gas industry generates revenue for our government – and the smart path to increasing that contribution in coming years.
First, our industry currently supplies $85 million a day in revenue to the U.S. Treasury via income taxes, royalties, rents and other fees. Second, industry is paying its fair share and more with an effective tax rate of 44.6 percent averaged over 2007-2012 – compared to 37.7 percent for retail, 25.6 percent for computer and peripherals and 21.3 percent for pharmaceuticals. And it could deliver more through increased domestic production made possible by greater access to U.S. reserves.
Posted September 11, 2013
Posted March 7, 2013
America is rich in the oil and natural gas that run our economy and make modern living possible. Industry ingenuity and innovation launched the shale revolution and rewrote the U.S. energy narrative – turning one of scarcity and limited opportunity into one of abundance. Needed are leadership and policies to develop the resources we have, generating transformative job creation and economic growth in the process.ConocoPhillips Chairman and CEO Ryan Lance talked about these points in a speech at the IHS CERAWeek conference in Houston, focusing on the relationship between the oil and natural gas industry and government – probably the most pivotal relationship in terms of U.S. energy development.
Posted December 21, 2012
Posted August 17, 2011
Posted August 15, 2011
Posted August 9, 2011