On Trump Tax Play, Watch What You Wish for, Drillers Warned

28 Apr 2017   USA

Energy producers among most taxed sectors in U.S.: BI report But cut in corporate rate may also jeopardize tax deductions While President Donald Trump’s plan to cut corporate income taxes could save oil and natural gas explorers $13 billion a year, it jeopardizes tax breaks that may mean even more to U.S. shale drillers. The proposal outlined Wednesday is a long way from the finish line and could change significantly in the coming months. One major question is whether Trump and the U.S. Congress balance lower tax rates by reducing other incentives, like a deduction for drilling expenses that may save companies $35 billion over the next decade, according to a report Thursday by analysts at Bloomberg Intelligence. That could be a bad exchange for independent exploration and production companies — the small and midsize drillers who focus on U.S. shale fields. With oil prices slumping in recent years, […]

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