Discussion in 'Energy' started by KissMy, Jul 13, 2010.
Diamond Moves Second Drilling Rig Out of Gulf
Economic peril seen from offshore drilling ban
"We're going to see companies go out of business. We're going to see workers leave this industry," said Louis Raspino, chairman of the International Association of Drilling Contractors and chief executive officer of driller Pride International Inc.
"In a very, very short period of time, we're going to see this industry implode," Raspino said.
Just one more facet of the big Jobs Bill ongoing under the Big 0.
Wind mill farms are still recruiting for maintenance people.
Let's say that overnight, the U.S. was able to reduce its crude oil consumption by 60% - and do it with renewable, green, sustainable, zero polluting technologies.
This country would then be 100% reliant on domestic oil production for its needs.
How would you propose we treat the industry? Continue to batter it into the ground?
I'll be one of the first to say that we need to transition away from hydrocarbons. But the public's perception, and Washington's policies, have changed little over the decades. Weaning ourselves from oil has always been a twisted myopic campaign to sweep the most strategic industry we have under the rug.
By the way- how about those "subsidies" you eluded to in another thread?
When the Deepwater Horizon drilling platform set off the worst oil spill at sea in American history, it was flying the flag of the Marshall Islands. Registering there allowed the rig’s owner to significantly reduce its American taxes.
The owner, Transocean, moved its corporate headquarters from Houston to the Cayman Islands in 1999 and then to Switzerland in 2008, maneuvers that also helped it avoid taxes.
At the same time, BP was reaping sizable tax benefits from leasing the rig. According to a letter sent in June to the Senate Finance Committee, the company used a tax break for the oil industry to write off 70 percent of the rent for Deepwater Horizon — a deduction of more than $225,000 a day since the lease began.
The Washington Monthly
PUTTING OIL INDUSTRY SUBSIDIES ON THE TABLE.... Under the circumstances, it's tempting to think Congress wouldn't have too much trouble ending breaks for the oil industry -- energy giants have enjoyed remarkable generosity for quite a while.
[A]n examination of the American tax code indicates that oil production is among the most heavily subsidized businesses, with tax breaks available at virtually every stage of the exploration and extraction process.
According to the most recent study by the Congressional Budget Office, released in 2005, capital investments like oil field leases and drilling equipment are taxed at an effective rate of 9 percent, significantly lower than the overall rate of 25 percent for businesses in general and lower than virtually any other industry.
And for many small and midsize oil companies, the tax on capital investments is so low that it is more than eliminated by various credits. These companies' returns on those investments are often higher after taxes than before.
"The flow of revenues to oil companies is like the gusher at the bottom of the Gulf of Mexico: heavy and constant," said Senator Robert Menendez, Democrat of New Jersey, who has worked alongside the Obama administration on a bill that would cut $20 billion in oil industry tax breaks over the next decade. "There is no reason for these corporations to shortchange the American taxpayer."
More jobs lost!!!
Fucking brilliant game-plan, Barry O
Jeff Merkley - United States Senator for Oregon: Home
Washington, D.C. – U.S. Senator Jeff Merkley (D-OR) joined Senators Robert Menendez (D-NJ) and Bill Nelson (D-FL) today to announce legislation that will close a number of corporate tax loopholes that allow oil companies to avoid paying billions of dollars in taxes. The Close Big Oil Tax Loopholes Act targets a series of tax breaks related to drilling activities and revenues, as well as foreign tax schemes. Menendez estimates that closing these loopholes will amount to more than $20 billion over ten years for taxpayers.
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