May 15, 2013
Domestic Energy Producers Alliance voices support for preserving CO2 enhanced recovery tax deduction
The Board of Directors of the Domestic Energy Producers Alliance (DEPA) voted at its April meeting to proactively support preservation of the current tax deduction framework for tertiary injectants. The addition to the DEPA oil and gas tax agenda was requested by Denbury Resources, which operates some of the nation’s largest carbon dioxide enhanced oil recovery projects.
“The Section 193 deduction provision allows the cost of carbon dioxide to be deducted in the year it is injected, instead of over the productive life of the field,” Denbury points out. “These CO2 projects require large, upfront capital expenditures. Sometimes the project timelines involved are up to four years before the first ‘new oil’ is recovered,” the company says.
The Sec. 193 deduction helps keep the door open for development and ultimate recovery of as much as 40-80 billion barrels of additional oil reserves in several states, plus the CO2 EOR projects create a potentially huge new market for anthropogenic CO2, incentivizing industrial emitters to capture the value of the CO2 by partnering with oil producers.
May 06, 2013
May is always hectic in Washington. It is a time when the House, Senate and Administration wrestle into place the agenda that will drive activity through the summer and into the fall. Regardless of the issue, the question of how to pay the bill (taxes, spending cuts, or a combination of the two) will be at the center of the debate. While major policies like immigration reform, gun control and counter-terrorism are certain to be on the agenda, 2013 will continue to be defined by a series of built-in fiscal confrontations. Adding to the sense of urgency in these recurring fiscal negotiations will be increased lobbying by federal agencies and special interests in opposition to sequestration.
April 26, 2013
Every once in a while there is dramatic news out of Washington. It doesn’t happen very often but when it does everyone takes notice.
Dramatic news occurred recently when Senator Max Baucus of Montanaannounced that he will not run for re-election in 2014. As chairman of the Senate Finance Committee, Baucus plays a critical role on the issue of tax reform.
March 29, 2013
Some years ago there was quite a fuss when schools switched over to teaching “the new math” which was different from what a lot of us learned when we attended school. Rather than “new math” Congress has its own unique form of math which is not always easy to follow.
March 25, 2013
Political support is a crucial part of DEPA’s advocacy efforts. DEPA PAC and its collaborative partner organizations have raised more than $1 million in the past two election cycles in support of our bipartisan mission to educate and influence members of the U.S. Congress.
March 25, 2013
Since last year’s election and the subsequent chaos around fiscal cliff negotiations Congressional Republicans, led by Speaker Boehner have consistently called for a return to regular order.
February 26, 2013
When we were kids and went to the movies, there was often a short sing-a-long, and we were told to follow the bouncing ball on the screen which displayed the words. Let’s see if we can all follow the bouncing ball on sequestration
February 20, 2013
Four leading oil state Democrats in the U.S. Senate have signed a letter encouraging key committee chairs not to single out oil and gas taxes as a means to create additional federal revenues.
February 12, 2013
The dust has settled on the fiscal cliff deal. Confronted with a combination of automatic tax hikes and sequestration and fresh off the heels of a tough election cycle, Congressional Republicans held a very weak hand. It proved difficult to stand in the way of a Democrat Administration and Senate determined to jam through the largest tax increase in American history.
February 12, 2013
Calls for Congress to raise additional revenues will be high on President Obama’s wish list during his State of the Union address to the nation tonight (Tue). It is expected the recently reelected chief executive will call for a mix of tax increases and the elimination of various tax expenditures to help delay the impending sequestration and provide the federal government more time to seek less severe cuts in both defense and social program spending.