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Stripper well producers call for end to export ban

North American Oil

by Tim Daiss

The debate over the 40-year ban on US crude oil exports is intensifying. US oil storage is reaching record levels and, until this week, crude production was still rising despite a reduction in the number of drilling rigs in operation after oil prices dropped nearly 60% since mid-June 2014. Also, the opening up last year of condensate, a minimally processed ultra-light oil, for exports has intensified calls to remove the crude export ban entirely.

However, there are both clear winners and losers as long as the ban remains in place. US refiners are among the main beneficiaries of the ban. However, a new study by Rice University has suggested that this comes at the expense of US producers. Full story

 
The U.S. needs to end its ban on crude exports

Foreign Policy

by Lisa Murkowski, John McCain & Bob Corker

A crisis flares in the Middle East. Russian military forces subjugate a nation desperate for freedom. Europe searches for new sources of energy.

Such was the situation in 1956. War raged over the Suez Canal, blocking shipping for half a year, and a crucial pipeline from the Persian Gulf to the Mediterranean Sea was sabotaged. Meanwhile, the Hungarian people rose up against their communist oppressors in October, precipitating a Soviet invasion days later. The Cold War turned hot and, as winter approached, American allies in Europe lost access to Middle Eastern oil. Read more here

 
NSWA Releases Percentage Depletion Study

NSWA Releases Percentage Depletion Study

IHS Report: Removal of the percentage depletion tax provision has unintended consequences for U.S. economy, small energy producers and royalty owners

National Stripper Well Association Chairman Mike Cantrell said removing the percentage depletion deduction from the tax code would have unintended consequences for the nationís economy by harming domestic energy small businesses and royalty owners.

Eliminating the percentage depletion tax provision for U.S. oil and gas producers would cut into economic growth, cost jobs and labor income, and cost the federal government a net $2.5 billion in tax revenue by 2025, and another $1.1 billion in royalty revenue from oil and gas produced on federal land, according to an economic impact assessment released today by the National Stripper Well Association (NSWA). The assessment was produced for NSWA by IHS, a leading global source of critical information and insight.

Percentage depletion is a tax provision used by oil and natural gas producers that allows them to recoup some of the costs involved in exploring for and developing fossil fuel sources.

Over the next decade (2015-2025), the economic impact of eliminating the percentage depletion deduction from the tax code would cost the United States economy $184.5 billion in gross value-added, an average of 178,000 jobs per year and $115 billion in earned labor income, the report said. More