Posted September 18, 2013
Check out the video below of a Fox Business Network interview with API President and CEO Jack Gerard on the tax reform climate in Washington that has some talking about raising taxes on energy companies. The ability to recover the costs associated with finding oil and natural gas in a timely way through the Intangible Drilling Costs provision is especially critical to continuing investments in energy development, Gerard says:
“When you look at what we do in the oil and natural gas industry, the minute we find the product, oil or natural gas, we begin to deplete that asset for that particular well. So what we need to do is recoup that cost associated with the drilling and immediately invest it in the next well. So we keep the process going. This is one of those areas where we’ve encouraged those on Capitol Hill to look closely at the impact on potential changes in tax law because, if they’re requiring us to expense that over a longer period of time, what it does is deny the cash flow ability to continue to invest and drill wells. When we drill wells we create jobs, we generate revenue and we make ourselves more energy secure as a nation. … We need tax reform in the United States because we need it to be more competitive on a global scale.”
The full interview:
ABOUT THE AUTHOR
Mark Green joined API after a career in newspaper journalism, including 16 years as national editorial writer for The Oklahoman in the paper’s Washington bureau. Mark also was a reporter, copy editor and sports editor. He earned his journalism degree from the University of Oklahoma and master’s in journalism and public affairs from American University. He and his wife Pamela live in Occoquan, Va., where they enjoy their four grandchildren.