Tax Breaks Could Save U.S. Oil Industry Billions

17 Mar 2017   USA

A tax reform proposed by the Trump administration could free up to $10 billion annually for the U.S. oil industry and maybe encourage more investments in additional production. Leaving aside the chances of this reform turning into actual legislation in its current version, these savings may not be good news for the industry. The proposal sees a cut in top-tier corporate tax from the current 35 percent to between 15 and 20 percent. Since oil and gas are among the most heavily taxed industries in the U.S, Bloomberg notes, the annual savings could exceed $10 billion. There is a catch, however: to benefit from these cuts, E&Ps will have to surrender some existing tax incentives, a Bloomberg Intelligence analyst, Vincent Piazza, notes. Even if they do, it remains uncertain if the savings will be put to work building production and if they are, this may actually spell doom for […]

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