Tax Breaks Make $50 Oil Profitable In The U.S.

6 Oct 2017   Shale Oil

While the U.S. administration is pushing for a tax code overhaul and supports American “energy dominance”, an environmental group suggests in a new study that at the current oil prices of $50, the development of U.S. oil resources may be much more dependent on tax deductions and provisions than previously thought. The study , conducted by researchers at the Stockholm Environment Institute and Earth Track, concludes that at a $50 oil price, around half of discovered and yet-to-be developed oil resources in the U.S. would depend on existing tax deductions to go from unprofitable to profitable. The researchers divided U.S. fields into four groups: the Permian Basin, the Williston Basin, the Gulf of Mexico, and a fourth group to include all other basins. Then they studied how each of the tax provisions influence the return on investment for new U.S. oil resources of more than 800 fields that have […]

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