|Proposed tax legislation receives support from small energy producers and royalty owners|
S. 948, introduced by Senator James Inhofe (R-OK), proposes making permanent the suspension of the net income limitation on percentage depletion for oil and natural gas produced from marginal properties.
On October 8, 2015, thirteen state and national oil and natural gas associations, representing those who operate the more than 600,000 marginal well and millions of royalty owners nationwide, sent a letter to Senator James Inhofe (R-OK) in support of Senate Bill 948, which proposed making permanent the suspension of the taxable net income limitation on percentage depletion for oil and natural gas produced by marginal properties.
“This important relief is critical to preserving production from the nation’s smallest, most economically-vulnerable oil and gas producers. We appreciate Sen. Inhofe’s sponsorship of this legislation and the overall goal of strengthening our country’s energy security and continued economic vigor through support of percentage depletion,” said Mike Cantrell, Chairman of the National Stripper Well Association, who spearheaded support for the legislation.
Cantrell said percentage depletion is a critical tax tool that extends the economic lifespan of low-volume wells by encouraging producers to continue operating marginal wells instead of cementing them in. Percentage depletion is used by oil and natural gas producers to recoup some of the costs involved in exploring for and developing fossil fuel sources, he said.
“I introduced S. 948 to help owners of small, marginally-producing oil and natural gas wells operate more economically and maximize production potential. As marginal wells account for nearly 28 percent of domestic production, this bill would put the United States another step closer toward energy independence,” said Senator Inhofe. “I look forward to working with the National Stripper Well Association and all stakeholders to continue to build support for legislation that revives an IRS provision that has been supported by Congress for 16 years.”
The organizations who signed the letter in support of S. 948 were: National Stripper Well Association; Independent Petroleum Association of America; Kansas Independent Oil & Gas Association; U.S. Oil & Gas Association; National Association of Royalty Owners; Texas Alliance of Energy Producers; Independent Oil Producers’ Agency; California Independent Petroleum Association; Eastern Kansas Oil and Gas Association; Petroleum Association of Wyoming; Texas Independent Producers & Royalty Owners Association; Domestic Energy Producers Association; and, Northern Montana Oil & Gas Association. Full Story
|National Stripper Well Association supports passage of House legislation to lift the 40-year-old ban on crude oil exports |
FOR IMMEDIATE RELEASE
October 9, 2015
National Stripper Well Association Chairman Mike Cantrell said today we add our voice to the growing chorus of Americans calling on Congress to allow domestic energy producers to sell their products to America’s allies and the world.
Today, the National Stripper Well Association (NSWA) joined in a chorus of voices from organizations representing domestic energy producers, stripper well producers included, in support of greater access to the world market by allowing U.S. crude oil exports. NSWA supports the passage of legislation to do so.
The legislation will open American exports of crude oil allowing domestic energy producers to compete on an international level, provide greater options to America’s allies, and strike a blow against nations who fund terrorism around the world, said NSWA Chairman and stripper well producer Mike Cantrell.
“This legislation will allow our domestic energy producers to compete with those state-owned corporations on the international market. When America competes on the world market, Americans win. The energy industry is no exception,” Cantrell said.
The domestic energy boom has put immense pressure on this sticking point of American energy policy, he said.
“Will Congress act and support increased free trade, domestic job creation, and international security for our allies? Or will we continue a 40-year old policy of isolation that empowers the cartels and foreign-owned corporations?” Cantrell said.
The NSWA and its members stand ready to support a new era of global trade market freedom, and call for Congress to end this outdated export ban that is hurting our small producers’ ability to invest in and advance domestic energy production, he said.