Oil and natural gas drillers believe changes presented in President Barack Obama's $4 trillion budget proposal would raise their tax burden by $95 billion over the next 10 years, an amount they claim will hurt at a time when market prices are relatively low.
"With companies announcing dramatic cuts in their drilling budgets due to plummeting prices, does it make any sense to add taxes?" asked R. Dennis Xander, past president of the Independent Oil and Gas Association of West Virginia. "That will go directly to the producers' bottom line, and result in further reductions in drilling budgets, the very thing that is driving the recovery."
In presenting his budget, Obama called for repealing some of the federal tax breaks drillers receive for a period of 10 years. The American Petroleum Institute, a trade group representing 625 drilling and midstream companies, believes losing these tax breaks would cost its members $95 billion over the decade.To continue reading, click here.
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