Two of the most strategic energy partners for the United States are undoubtedly Mexico and Canada. With the right policies toward our energy neighbors – approval of the Keystone XL pipeline and the U.S.–Mexico Hydrocarbon Transboundary Agreement (TBA) - we have the potential to be North American energy self-sufficient by 2030 and enhance our energy security.

Keystone XL has drawn a lot of headlines, and it is well known that the project is in the national interest. Less well known is the U.S.–Mexico TBA.

The U.S.–Mexico TBA will govern the treatment of resources in the Gulf of Mexico that are located near the maritime border with Mexico. Congress is currently reviewing the agreement and both the House and Senate have introduced implementing legislation.

Included in the House of Re... more »

Let’s dig into the details of the more than $90 billion (over 10 years) in new and targeted tax increases on America’s oil and natural gas companies that President Obama included in his FY2014 budget. Note: The tax provisions below are in no way “taxpayer subsidies” and are not unique to our industry. They constitute standard business deductions (some available to all other industries) and mechanisms of cost recovery – a fundamental and necessary component to a national income tax system. Here we go:

Repeal expensing of Intangible Drilling Costs ($11 billion) – When companies drill they incur intangible drilling costs (IDC) – costs that cannot be recovered, such as site preparation and labor, representing 60 to 80 percent of the cost of the well. Since 1913, companies have been able to... more »

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 sa... more »

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.”

Shortly after the White House press briefing U.S. Rep. Chris Van Hollen of Maryland introduced legislation to replace the current statutory requirement for federal budget cuts with alternative revenue raisers, including a number of tax increases on oil and natural gas companies.  Ironically, in doing so he revealed the specious nature of repeated claims... more »

Update: The U.S. Senate failed to reach the 60 votes needed to invoke cloture and the motion failed 51-47. (29 Mar 2012)

Today the Senate will vote to advance S.2204 sponsored by Sen. Menendez (D-NJ). This bill will raise taxes on major integrated oil and natural gas companies to subsidize other forms of energy and will do absolutely nothing to lower gasoline prices.

A new poll conducted by Harris Interactive, from March 9-13 of registered voters nationwide, found that 76% of voters believe that increasing energy taxes could increase consumer costs on a wide variety of products, including higher gasoline prices.

American voters overwhelming oppose higher taxes!

Additionally, this bill claims to end alleged “subsidies” for a handful of oil and natural gas companies. However, nothi... more »