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Energy Tomorrow Blog

Good Energy Policy Key to Energy, Economic Growth

american energy  policy  growth  methane emissions  keystone xl pipeline  taxes  fracking 

Mary Leshper

Mary Schaper
Posted February 13, 2015

EIA Today in Energy: The United States, Canada, China, and Argentina are currently the only four countries in the world that are producing commercial volumes of either natural gas from shale formations (shale gas) or crude oil from tight formations (tight oil). The United States is by far the dominant producer of both shale gas and tight oil. Canada is the only other country to produce both shale gas and tight oil. China produces some small volumes of shale gas, while Argentina produces some small volumes of tight oil. While hydraulic fracturing techniques have been used to produce natural gas and tight oil in Australia and Russia, the volumes produced did not come from low-permeability shale formations.

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American Energy for the Greater Good

american energy  taxes  exports  jobs  Economy  manufacturing  fracking  lng exports  keystone xl pipeline 

Mary Leshper

Mary Schaper
Posted January 13, 2015

Forbes (Mark P. Mills): It was predictable. Oil gets cheap and now there’s a contingent in Congress looking to slap a new tax onto gasoline. What’s surprising is that there are some conservatives in both Congress and the pundictocracy also receptive to the notion, including the estimable Charles Krauthammer. It’s a terrible idea. Instead of raising taxes, the Congress should be focused on helping the industry that created the oil glut, and that nearly single-handedly sustained the U.S. economy through the recovery from the Great Recession: America’s shale producers who are now subject to nearly unprecedented foreign market manipulation.

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2015 Shapes Up as the Year of Energy Policy Debate

energy  regulations  fracking  jobs  exports  regulatory system  Economy  taxes 

Mary Leshper

Mary Schaper
Posted January 5, 2015

NPR: President Obama’s chief custodian of federal lands says local and regional bans on fracking are taking regulation of oil and gas recovery in the wrong direction. “I would say that is the wrong way to go,” Interior Secretary Sally Jewell told KQED in an exclusive interview. “I think it’s going to be very difficult for industry to figure out what the rules are if different counties have different rules.” In November, two California counties added themselves to a growing list of local bans on hydraulic fracturing. Voters approved measures in San Benito and Mendocino Counties by wide margins. “There are a lot of fears out there in the general public and that manifests itself with local laws or regional laws,” Jewell said.

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Good Business – The Benefits of American Energy

oil and natural gas development  economic benefits  eia  taxes on oil companies 

Mark Green

Mark Green
Posted June 23, 2014

It’s hard to overstate the revolution that’s under way in American Energy. In just a few years we’ve gone from a scenario of energy scarcity to energy abundance – thanks in large part to the innovations and investments of America’s oil and natural gas industry.  As the White House noted in its May report, “The All-Of-The-Above Energy Strategy as a Path to Sustainable Economic Growth,” dramatic increases in domestic oil and natural gas production have brought jobs, energy security and economic growth. ...

“All-Of-The-Above” is not just a strategy, or a simple catch-phrase. It represents our reality. Analysis by EIA as well as international and private analyses show that oil and natural gas provide the bulk of the energy we use today (62 percent) and will continue to provide the majority of the energy we use for many years to come (60 percent in 2040).

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Shale Energy is Moving America Ahead

american energy  jobs  Economy  taxes 

Mary Leshper

Mary Schaper
Posted May 22, 2014

Many analysts and politicians say this resource is the next industrial revolution. Hydraulic fracturing, or "fracking," has helped lead a boom in gas and oil production in the U.S. The new technology is unlocking oil and shale gas resources, spurring economic activity and giving industry a competitive edge with less expensive gas and electricity prices.

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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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Energy Policies Should Help, Not Hurt America’s Resurgence

american energy  Energy Security  energy policy  fracking  exports  keystone xl pipeline  taxes 

Mary Leshper

Mary Schaper
Posted January 23, 2014

What The Captain & Tennille Teach Us About Energy Policy

Forbes: Love apparently didn’t keep the ’70s pop duo Captain & Tennille together.Toni Tennille has filed for divorce from Daryl Dragon after 39 years of marriage. Just as the pair’s most famous standard now rings false, so does our 1970′s notion of energy security. For the past 40 years, U.S. energy policy has been married to the idea of scarcity. Following the oil embargoes of the 1970s, we built policies, from export bans to ethanol mandates, based on the idea that we would forever be at the mercy of other oil-producing nations.

The hydraulic fracturing boom, however, has changed all that. North America is undergoing an energy renaissance. Domestic crude oil production has reached parity with imports, and the International Energy Agency predicts the U.S. may become the world’s largest energy producer as early as next year. Yet our policies remain stuck in the dark ages of scarcity. Lawmakers on both sides of the aisle are resisting efforts to lift the 1970s-era ban on crude exports, citing issues of “energy security.”

As Sen. Edward Markey, D-Mass., told the Wall Street Journal: “If we overturn decades of law and send our oil to China and other markets, oil companies might make more money per barrel, but it will be American consumers and our national security that will pay the price.”

There’s a difference between ensuring our energy security and hoarding resources. With our newfound abundance, security comes through continued development of domestic reserves.

Read morehttp://onforb.es/KMM7kV

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Big Myths on Oil, Natural Gas and Taxes

taxes  taxes impact on business  oil and natural gas development  economic policy 

Stephen Comstock

Stephen Comstock
Posted January 21, 2014

A new year unfortunately means the same old tired arguments from folks seeking higher punitive taxes on America’s oil and natural gas companies, in this case in the form of a post from the Center for American Progress (CAP), which seeks to simplify the complexity of comprehensive tax reform down to “end special tax breaks for the five biggest oil companies.” So what are these “special” tax breaks they want to end?

Well, the first identified by CAP is the “Section 199 deduction” created in 2004 to spur employment in U.S. manufacturing and is available for all U.S. taxpayers who manufacture in the U.S.  So, not special for oil and natural gas companies, and in fact oil and natural gas companies are already singled out for reduced used of the deduction, compared to other manufacturers. The second is the foreign tax credit deduction, which is designed to minimize double taxation and is available to all U.S. companies with operations overseas. So again, not special for oil and natural gas companies. Lastly, CAP wants to end the intangible drilling costs deduction (IDCs), which is a cost-recovery mechanism for oil and natural gas exploration and production expenses that has existed since 1913.  While drilling costs are unique to drillers, the deduction of costs is similar to cost-recovery provisions provided to every business, so not special, and as a bonus, IDCs are also not a tax break, as drillers pay the full amount of taxes that are owed. 

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America’s Shale Success Story

hydraulic fracturing  fracking  exports  taxes  american energy 

Mary Leshper

Mary Schaper
Posted January 13, 2014

For Some Counties, Natural Gas Drilling Brings a Windfall

San Francisco Gate:  PITTSBURGH (AP) — Even as some cities around the nation have voted to ban fracking for natural gas, other rural areas are quietly embracing the boom by allowing drilling under public parks and land and reaping millions in royalties.

In Washington County, just outside Pittsburgh, officials say the unexpected revenue stream is letting them make improvements that otherwise might not have been possible.

"Having that funding source has been a tremendous boom to us," said Lisa Cessna, the executive director of the local planning commission. The county has received about $10 million directly from drilling companies since 2007, and royalty payments are still coming in. That's helped build fishing piers, playgrounds and walking trails.

Read more: http://bit.ly/1eP9ofQ

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The Gift of Petroleum

american energy  jobs  Economy  Environment  hydraulic fracturing  taxes  tax revenue 

Mary Leshper

Mary Schaper
Posted December 23, 2013

State Already Taxes Oil in many Ways

San Francisco Chronicle (Catherine Reheis-Boyd): Tom Steyer, the San Francisco billionaire environmentalist, has launched a campaign to increase taxes on energy production in California. He thinks oil companies are allowed to "siphon California resources without providing any meaningful return to Californians."

Beginning an education campaign on inaccurate claims doesn't bode well for the quality of the educational experience.

To claim Californians receive no meaningful return for the oil we produce is puzzling. Oil companies in California generate $6 billion in tax revenues for state and local governments, according to an analysis by Purvin & Gertz in 2011. While it's true California does not have an oil severance tax per se, California taxes oil companies and oil production in a variety of other ways.

Read more: http://bit.ly/1kzQ4aP

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