I believe it is time to examine the need for the oil depletion allowances and other oil tax benefits because the technology now used by the industry has significantly lowered the risk of drilling a new well. But the cost per well is now 10 times higher also. These write-offs were inserted in the tax code for the social engineering of motivating high risk investment by the drillers. But the write-offs should be reduced over a few years to avoid the industry shock that will come out as price raised at the pump.
As Ronald Reagan famously said, “There you go again.”
Of course, Reagan was blaming Jimmy Carter for launching false attacks during a debate. And that line was so effective, it not only helped Reagan win the debate, but a presidential election that would change American history.
But “there you go again” can apply equally to President Obama. Once again this week, the president was out on the campaign trail bashing and oil and gas companies. And he continued to spread major falsehoods about this industry, which I guess is the polite way to put it.
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