Very Important Sarah Palin Facebook Message Tonight: Drillgate

Discussion in 'Politics' started by US Army Retired, Feb 9, 2010.

  1. US Army Retired
    Offline

    US Army Retired BANNED

    Joined:
    Jan 17, 2010
    Messages:
    571
    Thanks Received:
    108
    Trophy Points:
    0
    Location:
    Mississippi
    Ratings:
    +108
    Looks like Obama needs to listen to her and do what is right for America and quit lying to Americans when it comes to developing domestic drilling and exploration.


    From Sarahs Facebook: Please read and try to comprehend this because the Oil & Gas Business is very complex and hard to understand if you're not part of it.

    Sarah Palin | Facebook

    Many of us appreciated the President mentioning in his State of the Union address that “tough decisions” had to be made regarding offshore drilling. People have had doubts about his seriousness in regards to domestic energy policy because our Department of the Interior dragging its feet on Virginia’s offshore oil and gas leases. Still, we’ve held out hope that America’s voice will be heard on energy.
     
    Last edited by a moderator: Feb 10, 2010
  2. Mr. H.
    Offline

    Mr. H. Diamond Member

    Joined:
    Aug 19, 2009
    Messages:
    44,104
    Thanks Received:
    9,264
    Trophy Points:
    2,030
    Location:
    A warm place with no memory.
    Ratings:
    +15,387
    Excellent thread. This is indeed a very complex and hard to understand industry. Capital intensive and extremely risky.

    Of added note: Obama's proposed budget includes stripping over $30 billion in incentives that are critical to the future development of American energy. This from IPAA.org:

    The Obama Administration’s budget request would strip essential capital from new American natural
    gas and oil investment by radically raising taxes on American production. American natural gas and
    oil production would be reduced. It runs counter to the Administration’s clean energy and energy
    security objectives.

    Intangible Drilling and Development Costs (IDC) – IDC tax treatment is designed to attract
    capital to the high risk business of natural gas and oil production. Expensing IDC has been part
    of the tax code since 1913. IDC generally include any cost incurred that has no salvage value
    and is necessary for the drilling of wells or the preparation of wells for the production of
    natural gas or oil. Only independent producers can fully expense IDC on American production.
    Eliminating IDC expensing would remove capital that would have been invested in new
    American production – such as the emerging shale gas resources throughout the country.

    Percentage Depletion – All natural resources minerals are eligible for a percentage depletion
    income tax deduction. Percentage depletion for natural gas and oil has been in the tax code
    since 1926. Unlike percentage depletion for all other resources, natural gas and oil percentage
    depletion is highly limited. It is available only for American production, only available to
    independent producers, only available for the first 1000 barrels per day of production, limited
    to the net income of a property and limited to 65 percent of the producer’s net income.
    Percentage depletion provides capital primarily for smaller independents and is particularly
    important for marginal well operators. Eliminating percentage depletion would remove capital
    that would have been invested in maintaining and developing American production.

    Passive Loss Exception for Working Interests in Oil and Gas Properties – The Tax Reform Act
    of 1986 divided investment income/expense into two baskets – active and passive. The Act
    exempted working interests in natural gas and oil from being part of the passive income basket
    and, if a loss resulted, it was deemed to be an active loss that could be used to offset active
    income as long as the investor’s liabilities were not limited. Most natural gas and oil producers
    in the United States are Small Business Owners. Natural gas and oil development require large
    sums of capital and producers frequently join together to diversify risk. To qualify for the
    exception, the producer must have liability exposure and definitely be at risk for any losses. If
    income/loss, arising from natural gas and oil working interests, is treated as passive
    income/loss, the primary income tax incentive for taxpayers to risk an investment in oil and
    natural gas development would be significantly diminished.

    Geological and Geophysical (G&G) Amortization – G&G costs are associated with developing
    new American natural gas and oil resources. For decades, they were expensed until a tax court
    case concluded that they should be amortized over the life of the well. In 2005 Congress set
    the amortization period at two years. Later, Congress extended the amortization period to five
    years for large major integrated oil companies and then extended the period to seven years.
    Early recovery of G&G costs allows for more investment in finding new resources. Extending
    the amortization period would remove capital from efforts to find and develop new American
    production.

    Marginal Well Tax Credit – This countercyclical tax credit was recommended by the National
    Petroleum Council in 1994 to create a safety net for marginal wells during periods of low
    prices. These wells – that account for 20 percent of American oil and 12 percent of American
    natural gas – are the most vulnerable to shutting down forever when prices fall to low levels.
    Enacted in 2004, the marginal well tax credit has not been needed, but it remains a key element
    of support for American production – and American energy security.

    Enhanced Oil Recovery (EOR) Tax Credit
    – The EOR credit is designed to encourage oil
    production using costly technologies that are required after a well passes through its initial
    phase of production. For example, one of the technologies is the use of carbon dioxide as an
    injectant. Given the increased interest in carbon capture and sequestration, carbon dioxide
    EOR offers the potential to sequester the carbon dioxide while increasing American oil
    production. Currently, the oil price threshold for the EOR tax credit has been exceeded and the
    oil value is considered adequate to justify the EOR efforts. However, at lower prices EOR
    becomes uneconomic and these costly wells would be shutdown.

    Manufacturing Tax Deduction – Congress enacted this provision in 2004 to encourage the
    development of American jobs. All US manufacturers benefitted from the deduction until 2008
    when the oil and natural gas industry was restricted to a six percent deduction while other
    manufacturers will grow to a nine percent deduction. While many producers’ deductions are
    capped by the payroll limitation in the law, it is another tax provision that provides capital to
    America’s independent producers to invest in new production.

    http://ipaa.org/news/docs/2010TaxProposal.pdf

    This is nothing less than a witch hunt reminicent of the Carter era.
     
  3. bodecea
    Online

    bodecea Diamond Member

    Joined:
    Jul 22, 2009
    Messages:
    89,024
    Thanks Received:
    10,368
    Trophy Points:
    2,030
    Location:
    #HasNoClothes
    Ratings:
    +23,636


    I hear she drives a Toyota too.
     
  4. elvis
    Offline

    elvis BANNED Supporting Member

    Joined:
    Sep 15, 2008
    Messages:
    25,882
    Thanks Received:
    4,303
    Trophy Points:
    0
    Ratings:
    +4,303


    hidden wish, there, Bo?
     
  5. VaYank5150
    Offline

    VaYank5150 Gold Member

    Joined:
    Aug 3, 2009
    Messages:
    11,779
    Thanks Received:
    1,047
    Trophy Points:
    138
    Location:
    Virginia
    Ratings:
    +1,055
    USAR...will you please start a thread once Palin updates her Facebook page calling for Rush Limbaugh's resignation for his heartless use of the the word "retards" on multiple occasions during his recent radio shows? We know how offended she is by this stuff, and I have to believe her offense extends beyond the occasions when Democrats use the word?
     
  6. US Army Retired
    Offline

    US Army Retired BANNED

    Joined:
    Jan 17, 2010
    Messages:
    571
    Thanks Received:
    108
    Trophy Points:
    0
    Location:
    Mississippi
    Ratings:
    +108
    I will if you tell me your thoughts on the Drillgate situation.
     
  7. VaYank5150
    Offline

    VaYank5150 Gold Member

    Joined:
    Aug 3, 2009
    Messages:
    11,779
    Thanks Received:
    1,047
    Trophy Points:
    138
    Location:
    Virginia
    Ratings:
    +1,055
    It's our Federal Government? NOTHING Gets done in four months....are you surprised about this? I mean, I realize Palin is feining shock and awe, but if you buy into her bullshit too, well...you know I am going with this.
     
  8. Luissa
    Offline

    Luissa Annoying Customer Supporting Member

    Joined:
    Sep 7, 2008
    Messages:
    43,190
    Thanks Received:
    5,593
    Trophy Points:
    1,785
    Location:
    TARDIS
    Ratings:
    +5,664
    Very Important and Facebook should never go together.

    I wonder what level she has now reached on Mob Wars?
     
    • Thank You! Thank You! x 1
  9. jillian
    Offline

    jillian Princess Supporting Member

    Joined:
    Apr 4, 2006
    Messages:
    69,551
    Thanks Received:
    13,012
    Trophy Points:
    2,220
    Location:
    The Other Side of Paradise
    Ratings:
    +22,427
    I hear she's spending her time on Farmville.
     
  10. Kex
    Offline

    Kex Member

    Joined:
    Feb 4, 2010
    Messages:
    408
    Thanks Received:
    32
    Trophy Points:
    16
    Ratings:
    +32
    Sounds dirty.
     

Share This Page