Energy Tomorrow Blog
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.
Posted February 21, 2013
While the White House talks again about raising taxes on oil and natural gas companies, let’s look at a chart that captures the starkly different outcomes – in terms of revenue for government – from two policy paths: higher energy taxes vs. increased energy development:
Posted February 6, 2013
Yesterday, President Obama called on Congress to pass a “balanced mix of spending cuts and more tax reform” to avoid the sequester spending cuts scheduled to take effect March 1. White House Press Secretary Jay Carney then followed up with, “That means closing loopholes that give tax advantages to the wealthy and to corporations that average Americans and average businesses don't have…So there's the subsidies to oil and gas companies.”
Posted February 5, 2013
Energy is essential to running our economy and securing our standard of living. At a very basic level we can get the energy we need in one of three ways: 1. We can produce it domestically; 2. U.S. companies can produce it abroad for sale in the U.S.; 3. Foreign companies can produce it abroad for sale in the U.S. Two of these three ways offer a clear advantage in creating American jobs, boosting the American economy and supplying revenue to American governments.
Posted February 5, 2013
An important new analysis supports what the oil and natural gas industry has been saying for some time: Drilling on public lands now closed to development could boost U.S. employment, economic growth and revenue to federal, state and local governments over both short- and long-term horizons.
Posted December 3, 2012
Posted November 26, 2012
Posted November 13, 2012