Search Results:
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What are intangible drilling costs? Why does the oil industry get to deduct these costs from their taxes?
Answer:
When energy companies drill they incur costs for things like site preparation and labor. No physical asset is received for these costs, and over time they have been termed as intangible costs. Typically, they represent 60 to 80 percent of the cost of the well – the remainder being the physical steel, pumps and casing that become part of the well. Companies have long had the option of deducting these costs in the year they are spent – similar to deductions enjoyed by other industries. For example, many industries are able to expense research labor and other costs under the research and development deduction, and computer software companies can deduct the costs of developing code. In fact, the administration has been promoting a provision to allow for the immediate expensing of all capital costs that meet certain thresholds.
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Do the majority of Americans support or oppose increased oil and natural gas development?
Answer:
By and large, Americans support increased oil and natural gas development. According to a Jan. 2012 poll by Harris Interactive, 70 percent of American voters favor increased access to U.S. oil and natural gas resources. Similar numbers also believe that more development would provide major benefits to the nation, including more U.S. jobs.
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What is the federal government’s five-year offshore leasing plan and why is it important?
Answer:
America’s vast proven reserves and undiscovered offshore resources are estimated at nearly 101 billion barrels of oil and 480 trillion cubic feet of natural gas in federal areas spanning the Atlantic and Pacific Oceans as well as the Gulf of Mexico, and the Chukchi and Beaufort Seas. To put this in perspective: 101 billion barrels of oil is enough oil to power 10 million cars for 348 years; and 480 trillion cubic feet of natural gas is enough to heat 10 million homes for nearly 656 years.
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How much did the 2010 Gulf deepwater drilling ban affect overall U.S. domestic production – in terms of output, jobs and economic activity?
Answer:
A 2011 Quest Offshore Resources study found that the 2010 deepwater drilling ban and subsequent permit slowdown reduced total Gulf of Mexico capital and operating expenditures by a combined $18.3 billion for 2010 and 2011, relative to pre‐moratorium plans.
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Why are oil companies sitting on idle leases?
Answer:
If you’ve been following the energy debate, you’ve probably heard politician cries of “Use it or Lose it.” These claims allege that the oil and natural gas industry is “sitting on” approximately 60 million acres of oil and gas leases that are going unused.
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How much oil and natural gas is left in the United States?
Answer:
The United States has enough oil and natural gas resources to power 65 million cars for 60 years and heat 60 million households for 160 years. In fact, with increased access and Keystone XL pipeline approval, 100 percent of America’s liquid fuel needs could be met by the United States and Canada. Despite misleading rhetoric, energy security is attainable.
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Does fracking cause earthquakes?
Answer:
There is no known evidence that hydraulic fracturing causes earthquakes. Hydraulic fracturing is a safe and well-regulated technology that has been used for more than 60 years in more than one million wells. Critics who say that fracking caused recent Ohio seismic activity have no scientific evidence to support their claims.
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How would expanding access to domestic energy development help our struggling economy?
Answer:
Given the critical role of oil and natural gas in driving economic growth and improving the standard of living here at home and around the world, we need policies that encourage expanded domestic oil and natural gas production. More domestic production would raise government revenues, boost the economy, strengthen U.S. energy security and create much-needed jobs at a time when 13 million Americans are unemployed.
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