[sr4402]

To what, and what amount have the alleged Subsidies been? Anyone??

[your local physicist]

There's a tax break called the depletion allowance, which if I recall correctly exempts about 15% of oil production from federal taxes. That adds up to a fairly big tax break over the years and it's not really justified because all industries have to do R&D and investment to stay in business and other industries don't get that big of a tax break to help them stay in business for the long term. Other than that, I can't think of any significant tax breaks or subsidies for oil producers.

The administration wants to end the current year expensing of "intangible drilling costs" and instead depreciate those costs over a number of years, which means the tax write-off occurs later and is thus less valuable to oil producers. The current year write-off of IDC's is not really a subsidy because it's always a judgment call in accounting whether an expense related to capital goods should be expensed or depreciated. You can go either way on those costs and it's incorrect to call current-year write-offs a subsidy. Drug companies get to write off all their R&D expenses in the current year, so why shouldn't oil drillers write off drilling site preparation costs (an IDC) in the current year?

[larry hagedon]

sr4402 wrote;
To what, and what amount have the alleged Subsidies been? Anyone??

I am trusting that the AP story is accurate. If it is a hoax, then I have been fooled.

I have no info other than the article.

I have researched these subsidies off and on for years. The one thing I have learned is that subsidies are often well hidden and intentionally so. Your congressman does not want you to know about his giveaways to any business, industry or interest group.

[larry hagedon]

this web site has a lot of specific subsidy info;

http://www.eli.org/

http://www.eli.org/pressdetail.cfm?ID=205

http://www.eli.org/pdf/Energy_Subsidies_Black_Not_Green.pdf

[larry hagedon]

http://www.eli.org/

http://www.eli.org/pdf/Energy_Subsidies_Black_Not_Green.pdf

http://www.eli.org/pressdetail.cfm?ID=205