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To: M Kehoe

Guy, if wells were replenishing there would never be a Cap and Abandon. Further, and maybe more precise, there would be no oil depletion allowance.

The depletion allowance is in tax law to provide the equivalent of depreciation on housing. Rental housing gets old via use. It loses value with age because of increased maintenance for normal accumulated damage. So the IRS says this asset has loss of value and the rental property thus can deduct that depreciation from rental income.

Oil fields owned by a producing company lists it as assets. Those assets pump out oil and lose value. The IRS thus allows an oil depletion allowance deducted from the proceeds of oil sales.

I’m not hammering you on this. I’m just jumping on it hard because conservatives by nature think abundance is forever. It is simply not with oil. It is finite and it will starve a lot of people eventually when trucks can’t deliver food to shelves.


41 posted on 05/02/2022 2:58:38 PM PDT by Owen
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To: Owen

I know that everything in your post 41 is true.

All I’m saying is that oil replacement happens.

The petrochemicals are abiotic.

I, like you am trying to state only facts in this forum. If I’m wrong, FReepers will point it out.

5.56mm


43 posted on 05/02/2022 3:11:27 PM PDT by M Kehoe (Quid Pro Joe and the Ho need to go.)
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To: Owen

Your points are factual, I didn’t realize anyone thought oil wells replenished themselves.


57 posted on 06/16/2022 4:39:54 PM PDT by Rusty0604 (" When you can't make them see the light, make them feel the heat." -Ronald Reagan)
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