The Domestic Energy Producers Alliance is a nationwide collaboration of 15 coalition associations – from California to West Virginia, Texas to Montana – representing about 10,000 individuals and companies engaged in domestic onshore oil and natural gas exploration and production (E&P). We believe in seeking common ground, and in common sense solutions to the challenges that face us in our businesses, including our relationship with the federal legislative and executive branches of government. In only its fifth year, DEPA now represents a majority of the individuals and companies responsible for the current renaissance in American oil and natural gas production.
Washington, DC-based Brookings Institute published a new report September 9 in favor of lifting current US restrictions on the export of crude oil. The report [view] comes to the conclusion that discontinuing the export ban would help lower US gasoline prices for consumers, increase profits for producers and encourage more production on US soil - all of which are good for continued economic growth and productivity and American energy security.
What difference a year makes. Mid-January of 2014 the price per barrel of WTI was hovering in the mid-nineties and the Seattle Seahawks were on their way to the Super Bowl. While the Hawks returning to the Super Bowl might seem to indicate things remain the same, the market price for a gallon of WTI has fallen by nearly fifty percent. Just this past week the Wall Street Journal featured a story that lead with the question, “How low can oil go?” The Journal went on to point out that, “One year later, crude prices are hovering around $50 a barrel and the Saudi Arabia-led Organization of the Petroleum Exporting Countries has repeatedly declined to cut the supply.” Adding further instability to oil markets was the death this past week of King Abdullah in Saudi Arabia and the collapse of the government in Yemen.
In response to a dramatic increase in US oil production, the Organization of Petroleum Exporting Countries, better known as OPEC, has decided to dump low-cost oil into the global markets in an effort to drive down the price of oil and punish US oil producers.
A decision in November by OPEC to maintain its output suggested the group is willing to let crude oil prices slide to a level that would slow US production.
IHS Report: Removal of the percentage depletion tax provision has unintended consequences for U.S. economy, small energy producers and royalty owners
National Stripper Well Association Chairman Mike Cantrell said removing the percentage depletion deduction from the tax code would have unintended consequences for the nation’s economy by harming domestic energy small businesses and royalty owners.
Eliminating the percentage depletion tax provision for U.S. oil and gas producers would cut into economic growth, cost jobs and labor income, and cost the federal government a net $2.5 billion in tax revenue by 2025, and another $1.1 billion in royalty revenue from oil and gas produced on federal land, according to an economic impact assessment released today by the National Stripper Well Association (NSWA). The assessment was produced for NSWA by IHS, a leading global source of critical information and insight.
While United States policymakers debate the Keystone XL pipeline, the recent and dramatic decline in crude oil prices is grabbing headlines as well. And with plummeting oil prices at the top of the page, there is a surge of interest in whether or not Congress might lift the ban on crude oil exports.
“US energy producers are caught between the hammer of the OPEC monopoly and the anvil of the oil export ban,” the Domestic Energy Producers Alliance (DEPA) told members of Congress late last week in a letter.