NYT: Bush's $28 billion giveaway to oil companies

http://www.energybulletin.net/14394.html

At a time when all oil producing countries are increasing their tax take to capture some of the increased value of the oil production (even the UK has recently increased the main tax rate from 40 to 50%), the Bush administration is busy doing the opposite. Recent executive decisions, and smart use by oil companies in lawsuits of ambiguous wording of the applicable laws, threaten to leave up to two thirds of Gulf of Mexico gas production paying no taxes, at a loss to taxpayers of $28 billion, according to the New York Times.

Let me summarise the main points of that fairly long and complex article.

- in 1995, the Clinton administration gave its support to a new programme exempting from royalty payments (usually, 12%) new offshore drilling for oil or gas in deep water, up to a given volume.

- One mistake was made - that of not capping the hydrocarbon price for which such incentive was available (but at least the Clinton administration had the partial excuse that oil prices were then low and not expected to go up).

<more>

Holy hot dogs, batman, are they really going to try to regain their prominence? WoW! If they do, they deserve my support, but I have a lot of fence sitting to do, before committing my fealty.