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Energy Tomorrow Blog

Energy and Taxes - A View Askew

energy taxes  energy policy  oil taxes  natural gas tax 

Stephen Comstock

Stephen Comstock
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.

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LNG Exports for U.S. Jobs, Economic Growth, Trade

trade  lng  exports  energy policy  energy economy  domestic energy development 

Mark Green

Mark Green
Posted January 25, 2013

This week API, on behalf of the U.S. oil and natural gas industry, furnished comments on the Energy Department’s 2012 study of the impact of exporting U.S. liquefied natural gas (LNG). You can read them in full here, but let’s cover some of the main points.

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VIDEO: The Formula for Energy Growth

energy development  energy policy  energy regulation  energy investment 

Mark Green

Mark Green
Posted January 25, 2013

Another video interview from the State of American Energy event earlier this month in Washington, D.C. Here, Chevron’s Dan Fager talks about the pillars of sound, pro-growth energy policy – new access to U.S. oil and natural gas resources, common-sense regulation and tax policies that encourage new energy investment instead of discouraging it:

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Nebraska Clears Way for Keystone XL

keystone xl  keystone pipeline  jobs creation  energy policy  downstream 

Mark Green

Mark Green
Posted January 22, 2013

The decision by Nebraska’s governor to OK a new route through his state for the Keystone XL pipeline is based on a factual assessment of the project’s safety, as well as the economic benefits that would accrue.

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It’s Time for the Keystone XL Pipeline

oil sands  keystone xl  energy policy  economic benefits 

Mark Green

Mark Green
Posted January 21, 2013

With more than four years of study and review of the Keystone XL pipeline seemingly nearing an end, there’s yet another study depicting jobs and economic benefits – that is, if President Obama will approve construction of the entire project.

This report comes from Creighton University economist Ernie Goss and his team, who project more than 5,000 new jobs a year and millions of dollars in investment in Nebraska from construction of the pipeline. You can read the Goss report here, but a few highlights: 

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LNG Exports: A Win for the U.S. Economy

domestic energy resources  energy economy  energy policy  exports  liquid natural gas 

Mark Green

Mark Green
Posted January 17, 2013

America’s newfound abundance of natural gas resources is a boon to the nation.  It is creating jobs, reducing home heating and electric bills and lowering energy and raw materials costs for businesses. … And the opportunity to do more is before us – to produce more natural gas, spur additional economic activity and create even more jobs – by serving international markets as well as American ones.

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Put American Energy to Work for Americans

regulation  policy  oil  natural gas  domestic energy  access 

Mark Green

Mark Green
Posted January 11, 2013

U.S. Chamber of Commerce President and CEO Tom Donohue in his annual State of American Business address, rightly identifying American-made energy as a critical to broad economic recovery and to solving the nation’s fiscal problems:

“Today, 23 million Americans are unemployed, underemployed, or have stopped looking for work. A record 47 million people are poor enough to be on food stamps. Median family income has dropped to 1995 levels—so we’re going backward. … From top to bottom we need more success in America. We need to nurture success, empower it, reward it, and celebrate it. … Proceeding swiftly and responsibly to develop more American energy can help us immeasurably with our fiscal problems, but it can also do so much more for our country.”

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On LNG Exports, Short-sighted Opposition to Free Trade

energy policy  manufacturing  regulation  energy exports  liquid natural gas 

Mark Green

Mark Green
Posted January 11, 2013

Here’s one of the main things wrong with arguments some are making against the export of U.S. liquefied natural gas (LNG): They substitute narrow interests and agendas for the proved economic benefits of free trade to the entire United States – long demonstrated in the sale of countless other U.S. commodities to overseas buyers.

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State of American Energy 2013: Investing in America

state of american energy  soae 2013  soae  energy policy  domestic energy  Energy 101 

Mark Green

Mark Green
Posted January 7, 2013

With the 113th Congress about to convene and President Obama preparing to launch his second term, America’s oil and natural gas industry is ready to take a leading role in boosting the nation’s economy – largely through investments stemming from increased development of domestic oil and natural gas.

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Study Provides New Impetus for New York Fracking

energy policy  fracking  hydraulic fracturing  natural gas  regulations 

Mark Green

Mark Green
Posted January 4, 2013

Here’s the crux of an unreleased (but leaked) New York Department of Environmental Conservation report that weighs the public health impact of natural gas development through hydraulic fracturing:

“…significant adverse impacts on human health are not expected from routine (fracking) operations. When spills or accidents occur, the department has identified numerous additional mitigation measures, including emergency-response planning, setbacks and buffers, so that significant exposures to people and resources on which they rely are unlikely."

Shorter version: Fracking can be done safely in New York.

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