Many of those items are deemed by "priceofoil.org" as subsidies, but are far from.
Intangible drilling costs are costs incurred, you can argue whether they should be capitalized or just expensed immediately. Either way they will get expensed.
energytaxfacts.com
Regarding royalties, let's see. You have a company paying money to the Federal government for the right to drill on Federal lands through leases. And if they are lucky and find and extract hydrocarbons, they also pay production royalties. What exactly is being subsidized?
SPR and other reserves? Seriously? How is that the responsibility of the oil & gas sector? In reality that is primarily a consumer subsidy, not an oil & gas sector subsidy.
Being able to deduct oil spill remediation costs? Again, how would this differ from a manufacturer or retailer being able to expense a chemical spill cleanup? Or a utility or manufacturer from being able to expense pollution control costs?
R&D tax credit? Do we not provide this to other firms, whether it is Apple, drug companies, First Solar, or others? Realistically, R&D in oil & gas is very low compared to many industries. Who gets the bigger subsidy?
LIFO? Doesn't that depend on whether prices go up vs. down?
How much subsidy does AMZN get? How much does AMZN pay in Federal taxes?
My first, and last, post on this subject.
KJ |
