An interesting discussion this week at a Politico Pro event hosted by API on the impacts of tax policy on the U.S. energy sector – timely, because if past is prologue oil and natural gas earnings reports this week and next likely will be accompanied by new calls for higher industry taxes. Let’s take a look at each issue.

First, earnings. Reported first-quarter earnings for America’s largest oil and natural gas companies reflect big companies with correspondingly big operations and investments. Yet, looking at earnings per dollar of sales helps contextualize the numbers. While not all oil and natural gas companies had reported their first-quarter earnings as of week’s end, here’s how that measure looked in the last quarter of 2012:

The point, as the chart below shows, is that indus... more »

Fuel Fix Blog – Report: Petrochemical Plants See Big Benefits from Low-Cost Natural Gas

Low-cost shale natural gas has made North America – specifically the United States – a more competitive region for petrochemical producers. The sector has plans to add $120 billion in investments through 2030, according to an IHS analysis. 

AEI Ideas Carpe Diem Blog – Spectacular Rise in America’s Oil Output

The U.S. last week reached a 21-year  high for domestic oil production, more than 7.3 million barrels of oil per day, something that is “nothing short of phenomenal,” writes blogger Mark J. Perry. The last time U.S. output exceeded the 7.3 million bpd mark was in 1992.

The Philadelphia Inquirer – Dispelling Myths About Fracking

In a guest column, Breitling Oil & Gas CEO Chris Faulkner de... more »

The Hill’s E2 Wire – Interior Chief Jewell on Fracking Rules: ‘One Size Doesn’t Fit All’

New Interior Secretary Sally Jewell hosted her first a public video chat this week. Jewell, a former oil and natural gas industry engineer, talked about her personal experiences with hydraulic fracturing, saying, “fracking as a technique has been around for decades. … I have performed the procedure myself very safely.”

Bloomberg – Eagle Ford Crude Oil Production Reaches Record High in February

Bloomberg reports that the nine geographic fields that make up the majority of Eagle Ford shale play in Texas yielded 471,258 barrels of crude a day in February, a 74 percent increase from last year. 

News Max – Clinton Advisor: Fracking Has Cut Greenhouse Gas By 12 Percent

Jeffrey Frankel, Harvard pr... more »

LA Times – EPA: U.S. Greenhouse Gases Drop 

The newspaper highlights the latest good news from the EPA: Increased use of natural gas, much of it developed with  hydraulic fracturing, has helped the United States lower its greenhouse gas emissions 1.6 percent from 2010 to 2011 and nearly 7 percent since 2005.

Roll Call – Redford: Keystone XL an Environmentally Sound Way to Enhance Energy Security

Alberta  Premier Alison Redford’s  op-ed argues that Canada is “the safest, most secure and responsible energy supplier to the United States and a reliable trading partner.” This comes after her recent visit to the U.S. advocating  approval of the Keystone XL pipeline project.  Approving the pipeline “is the choice of reason,” she writes.

Master Resource – EPA’s Tier 3: Transportation Ove... more »

The Hill – Energy Taxes Are No Budget Solution

Steve Forbes writes on The Hill’s Congress Blog that higher taxes on the oil and natural gas industry would cost jobs, lower energy production and actually reduce revenue to government over time. He cites a study showing that “a new tax on the industry would sacrifice 170,000 direct and indirect energy jobs by 2014.”

Houston Chronicle – It’s Wrong to Penalize the Oil and Natural Gas Industry

“Singling out our oil and natural gas industry for taxation penalizes producers,” writes the newspaper. “Bad guys? You mean the folks who employ our neighbors in good-paying jobs, contribute mightily to our tax base, civic life and sports and cultural/arts scenes? We don't think so.”

Star-Tribune – How Fracking Transforms Fortunes, Land

AP phot... more »