Starting next year, the state of California will impose a 6.5-cent fee on every barrel of crude oil transported to the state via rail as part of new safety provisions. The same fee will be applied to every barrel of crude oil piped to refineries from inside the state. The state plans to raise $11 million from these fees during the first year. The funds will be allocated for oil spill prevention and emergency clean-up.
In the state of Oregon, Rep. Peter DeFazio—a senior Democrat on the House Transportation Committee--has unveiled a new proposal to replace the 18.4-cent-per-gallon federal gas tax with a per-barrel levy on oil companies. DeFazio’s proposal is to swap an excises tax on gasoline with a more hidden consumption tax. Under the proposal, the per-barrel oil tax, which would be initially set at $6.75, would increase every year to account for inflation and improvements in vehicle mileage. The diesel fee would also be increased.
Kazakhstan—home to three giant oil fields: Tengiz, Karachaganak and Kashagan--has announced that foreign investors outside the oil industry will be exempt from paying land and corporate tax for 10 years should further increase foreign investment in areas such as mining, gas and agriculture, and thus help diversify the economy and reduce its dependence on the oil and gas sector.
Discoveries & Development
Hungary’s MOL oil and gas group has announced a significant oil discovery…