Posted on 06/15/2014 9:04:06 PM PDT by ckilmer
How’s it look in the past 20 years.
When you said “in” I thought you meant present day and not old history. This article is about relatively recent changes.
Oh come on, this is delusional.
When Alaska is down from 2+ million bpd to 500K and then nudges up 50K or 100K, that’s not a celebration event and cause to punch the air in optimistic glee.
That’s just noise.
Nudging up is hardly a sharp decline.
By the way, Alaska is one of the few real producers not even nudging up. They only recently fixed their horrible ACES profit-taxing plan and the companies are back to some better investments now for future production.
So will the state lower taxes or will the (Dem) parasites consume the surplus?
Quick, cut taxes before the parasites smell a surplus.
Oklahoma Legislature Passes Controversial Tax Incentive for New Oil and Gas Wells
http://stateimpact.npr.org/oklahoma/2014/05/23/oklahoma-legislature-passes-controversial-tax-incentive-for-new-oil-and-gas-wells/
House Bill 2562 replaces a tax incentive for horizontal drilling with one for both horizontal and traditional, vertical drilling.
The incentive reduced state taxes on oil and gas production, set at 7 percent, to 1 percent for the first four years of production. Horizontal drilling is now common practice and employed in most new wells drilled in Oklahoma.
The incentive expires in 2015...
It will be at least two years before we hit a surplus. But the likelihood is that Obama will go out in 2016 with a budget that is nearly balanced. The democrats will have had nothing to do with that balanced budget. They will have fought tooth and nail to prevent that from happening. But they will claim credit for it.
Same thing happened with Clinton. He fought Newt tooth and nail to prevent a balanced budget and then took credit for the balanced budget once it was achieved.
Why the need for subsidies/crony capitalism?
Wasn’t that a Palin tax?
Reducing a tax that is only applied to one industry is considered a subsidy? How about all the other industries that don’t pay this tax at all?
Yep. It took years to even begin to undo the damage while most of the oil producing states grew in production.
I was just curious. This is an industry specific tax that they simply reduced? Why is the petroleum industry targeted for special/unique taxes?
Be careful. If someone catches you pointing out the clay feet of the Goddess...
This is an industry specific tax that they simply reduced?
Yes, this is called the gross production tax which is in addition to royalties and income and property taxes. To my limited knowledge, no other industry pays taxes on gross volume, only profits after costs.
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Why is the petroleum industry targeted for special/unique taxes?
Because big oil has lots of money and can afford it, don’t ya know. That’s why grandma has the oil company stock, because she can afford to pay more taxes.
Extra taxes on oil/gas are the normal in most locations. In Alaska, only oil/gas property pays property tax to the State. All other property is only taxed by the local municipality, which oil/gas pays as well. They never quit squeezing the golden goose.
I always find claims of government subsidy to oil/gas companies laughable. In reality, oil companies subsidies government; typical government take is 2~4 times the profit kept by oil/gas companies.
It wouldn’t be the first time. I was working the industry in Alaska at the time the tax was started, and put in retroactively. New work was shut down; my team fell to 1/3 its size. It helped motivate me to return to Texas.
I suspected that and had heard about it, but you know about “hearing” about things. I like it straight from the horse. Thanks and I appreciate your postings as always.
ExxonMobil for example,
profit kept from total revenue = 7.7%
taxes paid from total revenue = 21.7%
Government makes 3 times the money than this company does from the sales.
http://www.sec.gov/Archives/edgar/data/34088/000003408814000012/xom10k2013.htm
Ref page 36 & 53
Wow, we’ve really been snookered as a people. Imagine if those taxes were plowed back into energy development or used in the productive sector?
I had always thought of Alaska as a conservative, frontier-like place of laissez-faire, only to find out it’s a welfare queen.
I had always thought of Alaska as a conservative, frontier-like place of laissez-faire, only to find out it’s a welfare queen.
A previous FReeper described it to me as "Redneck Socialist". I lived there for 4 years. A beautiful place, but his description had a little too much truth in it.
Conservatism usually respects and embraces normal and natural phenomena. It’s frequently astonishing to me how it often doesn’t respect and embrace the normal and natural inexorable decline of net oil joules.
Downward is inexorable and inescapable reality, and it’s normal and natural for US oil — especially when faced with the utter explosion of Chinese consumption. These progressive notions that tax policy can change the reality of a glass that is being drained eventually goes empty are frankly shameful, and they are the sort of notions that lead to refusal to burn up everyone elses oil first and eventually have complete global dominance.
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