Truth About “Subsidies”

There is likely no more misunderstood or misrepresented issue in the petroleum industry than the existing tax treatment for oil and gas producers. To better understand the existing tax structure; here is a breakdown of each mechanism working to incentivize drilling for sustainable domestic energy, jobs, and much needed revenue.

Cost Recovery: IDCs
Non-integrated Producers: Percentage Depletion
Geological and Geophysical Costs
Enhanced Oil Recovery-Tertiary Injectants
EOR and Marginal Well Credits
Downstream Sector-LIFO
Double Taxation-Dual Capacity Rules
Domestic Manufacturer’s Deduction-Section 199