• 3 minutes Looming European Gas Crisis in Winter and North African Factor - a must read by Cyril Widdershoven
  • 7 minutes "Biden Targets Another US Pipeline For Shutdown After 'Begging' Saudis For More Oil" - Zero Hedge Monday Nov 8th
  • 12 minutes "UN-Backed Banker Alliance Announces “Green” Plan to Transform the Global Financial System" by Whitney Webb
  • 41 mins GREEN NEW DEAL = BLIZZARD OF LIES
  • 3 days Building A $2 Billion Subsea Solar Power Cable From Chile To China
  • 1 day China's aggression is changing the nature of sovereignty.
  • 2 days Hunter Biden Helped China Gain Control of Cobalt Mines in Africa
  • 2 days OPEC+ Expects Large Oil Glut In Early 2022
  • 23 hours Ukrainian Maidan after 8 years
  • 1 day Delta variant in European Union
  • 2 days President Biden’s Nuclear Option Against OPEC+ - Waste of Time
  • 2 days CO2 Electrolysis to CO (Carbon Monoxide) and then to Graphite
  • 13 hours Communist China Declared War on the US Long Ago Part 1 of the 2-part series: The CCP's War on America
  • 2 days Forecasts for Natural Gas
  • 2 days Microbes can provide sustainable hydrocarbons for the petrochemical industry
  • 2 hours Сryptocurrency predictions
  • 2 days NordStream2
  • 3 days Big Bounce: Russian gas amid market tightness - new report by Oxford Institute for Energy Studies
Drilling Is Picking Up In The U.S. Shale Patch

Drilling Is Picking Up In The U.S. Shale Patch

U.S. shale drillers have significantly…

The Investment Case For Floating LNG

The Investment Case For Floating LNG

Sky-high natural gas prices have…

Obama FY15 Budget Would Eliminate Oil Tax Breaks

President Obama released his fiscal year 2015 budget on March 4, a $3.9 trillion package that includes a range of wish-list items in an election year. Among other things, the budget calls for the elimination of a range of tax breaks that benefit oil, natural gas, and coal companies.

The tax breaks amount to $4 billion annually, and eliminating them is request that the President has called for multiple times over several years. Over ten years, if enacted, cutting the tax breaks would save $48.8 billion over ten years.

The budget also calls for $27.9 billion to fund the Department of Energy, a bump of 2.6% over last year’s funding levels. His budget did call for an increase in spending for DOE’s Fossil Fuel program, mainly focused on research for “clean coal” technologies.

Related Article: Obama Admin Raises Liability Cap for Oil Spills

As for renewable energy, the budget calls for a permanent extension of the production tax credit for wind power, which has suffered from on-again off-again treatment from Congress. It expired at the end of 2013 and was not renewed. If extended, it would cost $19.2 billion over ten years.

However, the budget has a near-zero chance of being implemented, at least without serious changes. The fossil fuel industry has repeatedly pushed back against the President’s plans, and with mid-terms looming, Congress will almost certainly reject the President’s plan. Moreover, many Senate Democrats that are up for reelection come from conservative states that support fossil fuel development, such as Mary Landrieu (D-LA) and Mark Begich (D-AK). Thus, as both parties prepare for the mid-term elections, it is unlikely that there will be major reforms to the tax code or radical changes in spending levels.

In any event, energy reforms in the budget will likely be a sideshow. The most contentious elements of the President’s budget will center around raising the minimum wage, and lower troop levels at the Pentagon.

By Joao Peixe of Oilprice.com



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News