Oil and Natural Gas Industry Takes Issue With Tax-Reform Proposal

Max Baucus (D-MT) speaks at a Senate Finance Committee meeting on March 20, 2007.
National Journal
Clare Foran
Add to Briefcase
Clare Foran
Dec. 13, 2013, 8:21 a.m.

The oil and nat­ur­al-gas in­dustry is tak­ing is­sue with a tax-re­form pro­pos­al put for­ward by Sen­ate Fin­ance Com­mit­tee Chair­man Max Baucus, D-Mont.

The pro­pos­al, which Baucus re­leased as a dis­cus­sion draft last month, would ex­tend the cost re­cov­ery peri­od for tax-de­duct­ible op­er­at­ing and labor costs in­curred by the in­dustry, in­clud­ing drilling ex­penses. It would also put an end to com­monly used ac­count­ing prac­tices such as the last-in, first-out meth­od of ac­count­ing, which serves to de­term­ine a com­pany’s tax li­ab­il­ity.

In a let­ter to Baucus on Fri­day, in­dustry stake­hold­ers say these changes could spell dis­aster for them. Spe­cific­ally, the let­ter states that if the changes go through, they could slow in­dustry growth and dis­cour­age private in­vest­ment in oil and nat­ur­al-gas pro­duc­tion.

“Our in­dustry is posed to make even great­er cap­it­al in­vest­ments in do­mest­ic en­ergy pro­jects all across the United States, gen­er­at­ing jobs and rev­en­ues for loc­al com­munit­ies throughout the coun­try,” the let­ter states. “We must have a tax code that not only en­cour­ages growth in such in­vest­ments, but al­lows us to con­tin­ue our track re­cord of cre­at­ing jobs, grow­ing the eco­nomy, and strength­en­ing our en­ergy se­cur­ity.”

Sig­nat­or­ies in­clude Jack Ger­ard, pres­id­ent and CEO of the Amer­ic­an Pet­ro­leum In­sti­tute, the largest trade as­so­ci­ation for the oil and gas in­dustry, and Mar­tin Durbin, pres­id­ent and CEO of Amer­ica’s Nat­ur­al Gas Al­li­ance, a ma­jor trade group rep­res­ent­ing in­de­pend­ent nat­ur­al-gas ex­plor­a­tion and pro­duc­tion com­pan­ies.

Read the full let­ter here.

What We're Following See More »
THE PLAN ALL ALONG?
Manchin Drops Objections, Clearing Way for Spending Deal
1 days ago
THE LATEST

"The Senate standstill over a stopgap spending bill appeared headed toward a resolution on Friday night. Senators who were holding up the measure said votes are expected later in the evening. West Virginia Democrat Joe Manchin had raised objections to the continuing resolution because it did not include a full year's extension of retired coal miners' health benefits," but Manchin "said he and other coal state Democrats agreed with Senate Democratic leaders during a caucus meeting Thursday that they would not block the continuing resolution, but rather use the shutdown threat as a way to highlight the health care and pension needs of the miners."

Source:
UNCLEAR WHAT CAUSED CHANGE OF HEART
Giuliani Out of Running For State
1 days ago
BREAKING

Donald Trump transition team announced Friday afternoon that top supporter Rudy Giuliani has taken himself out of the running to be in Trump's cabinet, though CNN previously reported that it was Trump who informed the former New York City mayor that he would not be receiving a slot. While the field had seemingly been narrowed last week, it appears to be wide open once again, with ExxonMobil CEO Rex Tillerson the current favorite.

Source:
ALSO VICE-CHAIR OF TRUMP’S TRANSITION TEAM
Trump Taps Rep. McMorris Rodgers for Interior Secretary
1 days ago
BREAKING
SHUTDOWN LOOMING
House Approves Spending Bill
2 days ago
BREAKING

The House has completed it's business for 2016 by passing a spending bill which will keep the government funded through April 28. The final vote tally was 326-96. The bill's standing in the Senate is a bit tenuous at the moment, as a trio of Democratic Senators have pledged to block the bill unless coal miners get a permanent extension on retirement and health benefits. The government runs out of money on Friday night.

HEADS TO OBAMA
Senate Approves Defense Bill
2 days ago
THE LATEST

The Senate passed the National Defense Authorization Act today, sending the $618 billion measure to President Obama. The president vetoed the defense authorization bill a year ago, but both houses could override his disapproval this time around.

Source:
×
×

Welcome to National Journal!

You are currently accessing National Journal from IP access. Please login to access this feature. If you have any questions, please contact your Dedicated Advisor.

Login