They get investment monies in advance of drilling, if news comes out of a major find, investment (stock prices) increase. It is very much in there interest to say "there is oil there".
Where did I say they get money from the government to drill for oil?
Answer...I didn't.
They do get billions in 'subsidies' though:
'Currently, the U.S. government provides $4 billion in subsidies every year to the major oil producers.'
Obama plan to end U.S. oil subsidies rejected - Business - CBC News
and
Fossil Fuel Subsidies in the U.S. | Oil Change International
You don't agree? Take it up with the sources...I don't much care.
Good day.
What part of stock purchases/investment did you not understand?Oil companies do not get cash money from the government!
That is assuming all stock bought is sold and that the corp did not profit from the investment monies......but that still is not the point.....your point was that it is not in the oil corps interest to pump up possible findings....but it is...it attracts investment.It does no good to lie about how big a resevoir is, because if it doesn't produce, the invested money is lost.
Patently false.The oil companies have zero to gain by pressuring the EIA to over-estimate the size of the reserve.
Where did I say they get money from the government to drill for oil?
Answer...I didn't.
They do get billions in 'subsidies' though:
'Currently, the U.S. government provides $4 billion in subsidies every year to the major oil producers.'
Obama plan to end U.S. oil subsidies rejected - Business - CBC News
and
Fossil Fuel Subsidies in the U.S. | Oil Change International
You don't agree? Take it up with the sources.
Good day.
Neither source names a single specific subsidy. Why is that, you think?
Neither source names a single specific subsidy. Why is that, you think?
What subsidies are you talking about? The government provides NO money for exploration or anything else. And oh by the way the oil companies pay royalties permit fees and a whole host of other taxes and fees other industries DONT pay.
'May 21 (Reuters) - The U.S. Energy Information Administration (EIA) on Wednesday cut its estimate of recoverable oil in California's Monterey shale by 96 percent, casting doubt on what was once thought to be America's next major energy play.
In what could be welcome news for environmentalists and a potentially bad omen for oil drillers, such as Venoco Inc, with large leases in the region, the EIA slashed its forecast of technically recoverable reserves, citing production difficulties from initial wells.
The reserves were downgraded by 96 percent, from 13.7 billion barrels estimated by a government-funded report in 2011, to just 600 million barrels, the EIA said. A detailed report is expected to be released next month.'
UPDATE 2-U.S. EIA cuts recoverable Monterey shale oil estimate by 96 pct | Reuters
There isn't one. They are calling tax code a subsidy. Which its not.
You don't agree...take it up with them.
I don't care whether you think they get subsidies or not.
Good day.
They STILL think, even after years a debunking, that oil companies somehow get tax deductions that no other business qualifies for.
What part of stock purchases/investment did you not understand?
That is assuming all stock bought is sold and that the corp did not profit from the investment monies......but that still is not the point.....your point was that it is not in the oil corps interest to pump up possible findings....but it is...it attracts investment.
Patently false.
What other business gets an "oil depletion allowance"?
You keep moving your goal post:Dry holes don't generate profit; not even in the Liberal fantasy land.
Again, patently false, speculative investment is spurred by such announcements.The oil companies have zero to gain by pressuring the EIA to over-estimate the size of the reserve.
What other business gets an "oil depletion allowance"?
You keep moving your goal post:
Again, patently false, speculative investment is spurred by such announcements.
Not that I would ever imagine you to acknowledge your error.....but you are totally incorrect.
Every business in America is allowed to depreciate loss in capital. Farmers are allowed to count their crops as capital and can deduct a reduction in market prices. Grocery stores do it all the time.
Ummm as you are fond of saying- can I see the text on farmer's being able to take fluctuations in market price for their crop as depreciation? I know I can take any loss in the sale of a momma cow (which really isn't because of the calves she gave me and the passing of years in the owing of her.) I can depreciate farm equipment, any rent for land is a deduction, things like that....
Never heard that about the wheat I raise due to market prices, take a lowering in feeder or stocker calf market price reductions as a depreciation loss........ do tell....
Um, the point is, the oil corp always has an interest in news that spurs speculative investment.Again, if a well doesn't produce oil, the investors see zero profit. If Joe's Oil loses investers's money too many times investors lose confidence in Joe's ability to find and produce, then stop investing.
You should stop insisting that investments make money when there's no profit.
Um, the point is, the oil corp always has an interest in news that spurs speculative investment.
You are too invested in your original post to admit to your error......which is why you continue to move your discussion to other subjects.
You lost the point, you are wrong......and we are done.
Tah-tah.
:2wave:
What do you want to make a bet that every other mineral extraction company gets a similar benefit in the tax code. By the way that's a fancy term for depreciation and an oil well is a depreciable asset. As is a mine or other limited life span asset.
Figure it out.
We are done here.
Good day.
Every business in America is allowed to depreciate loss in capital. Farmers are allowed to count their crops as capital and can deduct a reduction in market prices. Grocery stores do it all the time.
Ok cranky.
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?