The People of America's Oil and Natural Gas Indusry

Energy Tomorrow Blog

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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offshore-development  onshore-leases  government-revenues  royalties  taxes 

Mark Green

Mark Green
Posted October 17, 2013

With the ongoing budget debate in Washington serving as backdrop, let’s review ways America’s oil and natural gas industry generates revenue for our government – and the smart path to increasing that contribution in coming years.

First, our industry currently supplies $85 million a day in revenue to the U.S. Treasury via income taxes, royalties, rents and other fees. Second, industry is paying its fair share and more with an effective tax rate of 44.6 percent averaged over 2007-2012 – compared to 37.7 percent for retail, 25.6 percent for computer and peripherals and 21.3 percent for pharmaceuticals. And it could deliver more through increased domestic production made possible by greater access to U.S. reserves.

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american-energy  hydraulic-fracturing  fracking  water-contamination  taxes  keystone-xl 

Mary Leshper

Mary Schaper
Posted October 8, 2013

Texas Continues to Lead the Shale Oil and Natural Gas Revolution

Forbes: Almost lost in all the news about the federal government “shutdown” (which has somehow left 83% of the government funded and functioning) over the last week are several new reports regarding the ongoing massive oil and natural gas Shale Revolution in the United States, and the role Texas is playing in making it happen…

When one includes condensate production from natural gas wells, Texas produced over 2.6 million BOPD in July, fully 35% of the nation’s petroleum production.  Just a little more than 2 years ago, in April 2011, Texas’s daily oil production was 1.3 million BOPD, accounting for just 20% of total US production.  That’s a phenomenal increase in only two years.  The state’s current production level would rank it 13th among all countries on earth, and the rate of increase will almost certainly move the state into the top ten within the next 12 months.

 

Read more: http://onforb.es/18N2qWO

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intangible-drilling-costs  investments  taxes 

Mark Green

Mark Green
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.

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income  jobs  taxes  lng-exports  hydraulic-fracturing 

Mary Leshper

Mary Schaper
Posted September 10, 2013

Fracking, the Poor and Adding to Americans’ Disposable Income

Wall Street Journal (editorial): Last week we reported on a study showing that the U.S. oil and natural gas revolution may be the country's best antipoverty program, and the evidence keeps coming. A new report from IHS Global Insight estimates that fracking added the equivalent of a cool $1,200 to real household disposable income on average in 2012.

Lower costs for raw materials were passed on to consumers via lower home heating and electricity bills and lower prices for other goods and services. Wages also increased from a surge in industrial activity. On present trend, IHS predicts that unconventional oil and gas will contribute more than $2,000 a year by 2015 and $3,500 by 2025.

Overall the industry lifted economic growth by $283 billion last year.

Read more (subscription publication): http://on.wsj.com/13GJtDS

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energy-security  taxes  hydraulic-fracturing  lng-exports 

Mary Leshper

Mary Schaper
Posted August 30, 2013

Benefits of Fracking Will Be Tested in Syria Attacks

Forbes: Oil prices are surging on concerns that a U.S.-led attack on Syria could disrupt global oil supplies. West Texas Intermediate crude traded at $110.45 a barrel on the New York Mercantile Exchange this morning, after rising more than $3 a barrel on Tuesday. Less than two months ago, oil sold for less than $100.Gasoline prices have risen the most in six weeks at a time when forecasts had indicated they would be falling because of seasonal decline in demand.

It’s a pretty typical market response to geopolitical unrest in the Middle East. The concern, of course, is that any escalation of the Syrian conflict will expand to include other oil-producing nations, particularly Iran. Iran has the power to control the all-important Strait of Hormuz, through which about 17 million barrels of oil pass each day — roughly one fifth of the world supply.

But this time things are different, at least from the U.S. perspective. The implications of a supply disruption are muted because domestic production is at a 20-year high,  driven by the hydraulic fracturing boom. U.S. inventories are flush.

Read more: http://onforb.es/15jNSjt

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taxes  tax-policy  tax-increases  lifo 

Mark Green

Mark Green
Posted August 28, 2013

The effort to overhaul the U.S. tax code certainly is a heavy lift. The code is enormous, enormously complex and has wide reach across America. The reform discussion should be thoughtful, fact-based and fair. Too often those are missing from the dialogue.

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environment  rfs34  ethanol  fuels  taxes 

Mary Leshper

Mary Schaper
Posted August 15, 2013

Say Anything Blog Despite Record Production, State Oil Regulator Says Tax & Regulatory Uncertainty Hurting Investment

North Dakota blogger Rob Port comments on concerns voiced by the state’s mineral resources director: “It’s always been a hard sell to the public at large that North Dakota’s oil boom – the goose laying the golden eggs – isn’t a given. To ensure the boom is something more than a boom-and-bust, the state should be looking at simplifying the tax code.”

The Hill’s Energy & Environment Blog – EPA’s McCarthy: Responsible Natural Gas Production Key to Climate Strategy

EPA Administrator Gina McCarthy, speaking in Colorado: “Responsible development of natural gas is an important part of our work to curb climate change and support a robust clean energy market at home.”

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access  taxes  tax-revenues  jobs 

Mark Green

Mark Green
Posted July 19, 2013


Some important fact-telling about the president's proposals to raise energy taxes and why there's a better way to raise revenue for government while also increasing domestic oil and natural gas production. 

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energy-101  jobs  jobs-and-economy  security-and-access  access  taxes 

Mary Leshper

Mary Schaper
Posted July 11, 2013

From time to time, a few politicians get the not-so-bright idea to try to repeal the tax deduction for intangible drilling cost (IDCs). A new study out today from Wood Mackenzie shows what would happen if this cost recovery measure was repealed effective January 1, 2014.

During a conference call with reporters, API’s director of tax and accounting policy Stephen Comstock noted that IDC expenses including wages, fuel, and hauling costs typically represent 70 to 90 percent of the cost of a completed well. Comstock:

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