Energy Tomorrow Blog
Posted April 15, 2013
The Hill – Energy Taxes Are No Budget Solution
Steve Forbes writes on The Hill’s Congress Blog that higher taxes on the oil and natural gas industry would cost jobs, lower energy production and actually reduce revenue to government over time. He cites a study showing that “a new tax on the industry would sacrifice 170,000 direct and indirect energy jobs by 2014.”
Houston Chronicle – It’s Wrong to Penalize the Oil and Natural Gas Industry
“Singling out our oil and natural gas industry for taxation penalizes producers,” writes the newspaper. “Bad guys? You mean the folks who employ our neighbors in good-paying jobs, contribute mightily to our tax base, civic life and sports and cultural/arts scenes? We don't think so.”
Posted April 12, 2013
There is an old legal saying: “If you have the law, hammer the law. If you have the facts, hammer the facts. If you have neither the law nor the facts, hammer the table.” This came to mind the other day while reading the Center for American Progress’ (CAP) response to the latest White House proposal to raise taxes on oil and natural gas companies.
**Spoiler Alert **
They like the idea – but CAP's post is a lot of table hammering, and the table is the oil and natural gas industry. Let’s de- demagogue this with a look at the facts.
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 April 11, 2013
New York Post – Gov. Cuomo’s Ugly Message to Businesses
Gov. Andrew Cuomo likes to declare that New York is “open for business,” but his prolonged refusal to OK hydraulic fracturing sends the opposite message, John Krohn writes in a guest op-ed.
Rockland County Times – Exports Grow Our Economy, Lift Ban on Natural Gas
In an op-ed, Margo Thorning writes that “the United States should capitalize on the comparative advantage it has over other countries with natural gas. In fact, respected economic consulting firm NERA recently analyzed LNG exports for the Energy Department and found that across every market scenario, increased exports would benefit the U.S. economy.”
Posted April 8, 2013
America’s oil and natural gas industry supports 9.2 million jobs and 7.7 percent of the U.S. economy. Since 2000, it has invested more than $2 trillion in U.S. capital projects, stimulating our economy – a repeatable, sustainable stimulus that doesn’t depend on an act of Congress.
In that context, check out our new television ad that focuses on energy job creation, economic growth and the way tax increases on the oil and natural gas industry could hinder both:
Posted April 4, 2013
Ryan Carlyle, a subsea hydraulics engineer, writes that oil accounts for one-third of humanity’s energy supply, is unrivaled in power generation and is fundamental to lifting billions of people out of poverty. Fun fact: If solar power generation doubled every decade for 100 years, it would still be pretty far behind oil today.
Wall Street Journal – Beware Tax Reform That Raises Taxes on Capital
Of the ongoing congressional debate over tax reform, Margo Thorning writes that “Investment, growth and job creation should be the cornerstones of any tax-reform effort.”
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 20, 2013
Associate editor at The Atlantic Jordan Weissmann had a provocatively titled piece yesterday on taxes and the oil natural gas industry which may have generated some traffic, but it certainly did nothing to contribute to an honest debate. His premise was to identify tax increases on the oil and natural gas industry as a: “safe ground to set up camp for the budget negotiations.”
The US imposes tax on net income, not gross income, which means that all businesses, whether they are farmers, manufacturers or oil companies, are allowed to deduct their normal business expenses from income in calculating their tax due. Accordingly, the oil and gas industry is eligible for business deductions that are the same as or similar to those available to other taxpayers. Contrary to what others may say, the industry does not receive credits, does not benefit of mandates and is not directly subsidized by the federal government. Weissmann’s one-sided opinion piece attempts to state otherwise by identifying specific items – so let’s look at them:
Expensing Intangible Drilling Costs ($13.9 billion): Since 1913, this tax break has let oil companies write off some costs of exploring for oil and creating new wells.
Posted March 13, 2013
A pair of new Energy Tomorrow television commercials feature real people talking about the real effects of raising taxes on America’s oil and natural gas companies – as is being pushed by some in Washington. Two main points:
- Because our economy runs on oil and natural gas, higher taxes on oil and natural gas companies will slow it down.
- Because energy is central to the way Americans live, making energy more expensive by raising taxes on it amounts to a tax on all Americans.
As API executive vice president Marty Durbin noted in a call with reporters today:
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.