Blurryeyed Loc: NC Mountains.

So let me ask, are you suggesting that they legally get to expense money that they do not spend? Just how does that work, you suggest manipulating, does this mean that they just make numbers up? I sincerely would like to better understand what we are talking about.

alandg46 Loc: Boerne, Texas

The money is spent. The deduction is legal. But it can reduce taxes to near zero with the addition of the postponement of income tax. Both of these were designed to encourage drilling in a high risk of failure environment. However, eliminating these deductions/deferments would not be good for the smaller independent companies and would probably force them out of business.

For total understanding consult an oil and gas tax accountant.

However, I will add that the industry is also heavily taxed in other ways. In Texas oil and gas are taxed at the well head, sales tax is charged for services while drilling, the refiner pays taxes, and the end product is taxed. Determining the total tax on a gallon of gasoline, chemicals made from petroleum, etc is difficult.

alandg46 Loc: Boerne, Texas

Here is more on this.
http://www.bloomberg.com/news/2012-07-02/cheaspeake-s-1-tax-rate-shows-cost-of-drilling-subsidy.html

alandg46 Loc: Boerne, Texas

Here is more on this.
http://www.bloomberg.com/news/2012-07-02/cheaspeake-s-1-tax-rate-shows-cost-of-drilling-subsidy.html

dirtpusher Loc: tulsa oklahoma

yup yup sure are... just like like last ten years biggest proffits ever.. yup yup sure are.
With Only $93 Billion in Profits, the Big Five Oil Companies and that just one year.

here is a list of it fer yuh. lol :roll: :roll: :roll: :roll: :roll:

http://www.google.com/?gws_rd=ssl#q=oil+has+highest+profits+ever&spell=1

it called greed not taxes. ida red.... :lol: :lol: :lol: :lol: :mrgreen: :mrgreen:
http://www.youtube.com/watch?v=ZFef08YZ6qk

dirtpusher Loc: tulsa oklahoma

So far, the second-largest U.S. natural-gas producer has paid income taxes on almost none of it.[/quote]

now that can't be right... lol :thumbup: :thumbup:

Michael Hartley Loc: Deer Capital of Georgia

FairTax.org

It's time!

alandg46 Loc: Boerne, Texas

In the interest of full disclosure, I participate in wells from time to time, I use these strategies myself. I do have to use a good oil and gas tax guy to do it. I don't fully understand it myself.

ted45 Loc: Delaware

So what? How does that effect you or I? On a gallon of gas, at $3.40 in my area, the oil company gets about five cents, the rest goes to State, Federal and local taxes. Why is the oil company the bad guy in that equation?

dirtpusher Loc: tulsa oklahoma

you up early telling jokes this morning... lol

http://www.google.com/?gws_rd=ssl#q=oil+has+highest+profits+ever&spell=1

alandg46 Loc: Boerne, Texas

The retailer makes about a nickel a gallon. The refiner makes more and the producer makes more. But the profit margin is still only about 6%. About 47 cents a gallon average in taxes at the pump.

The profit margin is only about 6-7%. Pretty low.

Producing chemicals is far more profitable than producing gasoline, diesel, or heating oi.

Blurryeyed Loc: NC Mountains.

So, I have not read your links yet but I will come back to them later, I really don't see how deducting legitimate business expenses is unfair to anybody. Based on the percentage of income tax paid it may be that some of those deductions come in the form of a credit which changes the paradigm quite a bit because that is dollar for dollar off of the tax bill itself, but I don't know this to be true, like I said I will read your links to see if they explain this.

I would ask what your understanding is of the democrats distaste of the oil companies, like Dirt here demonizing the oil companies for their profits in this thread. Personally I am quite thankful for the oil companies, I think that my life would be a hell of a lot more uncomfortable if I could not drive down to the corner gas station and fill my car with gas easily and conveniently. I am also thankful for the abundant energy in this country so that I can power my home and any tools that I use without problem. The efficiency and reliability of energy distribution in our country is a marvel onto itself, something that our government could never accomplish. As far as profits go, it seems that our friends on the other side of the issue do not seem to recognize several factors, one being that government is a partner in the industry who risks nothing and profits substantially from the endeavors of the industry, local, state, and federal taxes represent more in the price of a gallon of gas than do the profits extracted by the oil industry. To go further, as I pointed to earlier, this industry is doing more than any other to grow our present economy and to begin to change the direction of our trade imbalance which is not talked about enough as the value of our savings is effected by excess deposits in foreign banks. Lastly, I would ask who are the oil companies? From a 2011 study.



It seems to me that people shoud be more thankful for these companies and would stop demonizing them, I just don't understand how the other side thinks, these companies employ millions of people at outstanding wages, provide 10's upon 10's of millions of other Americans with solid investment vehicles, and reliably provide a product at a reasonable price that most of us feel that we cannot live without. What is there to hate?

dirtpusher Loc: tulsa oklahoma

i'll agree to that

dirtpusher Loc: tulsa oklahoma

have no problem with fair profit. problem is there is very little competition they know it. they can charge what they want how they wan't.

just like in my construction have to hold down cost to acquire the bid. my profit is very restrictive. only cost i can use to bargin is labor. BUT if i bargain to much on that. have to go look for new help. good help cost. their profit is what ever they desire. wake up blurr.

your thinking is just as many. there is one worse than your thinking. those that don't think. just as stock market price is driven up by some place in the world there is trouble, that really is not effecting anything. but speculators use it to the max'm to drive price of crude up.

Blurryeyed Loc: NC Mountains.

Except for the fact that it is not, what the left does not seem to be able to grasp is the enormity of these corporations and the amount of investment that they have made.... Yes, it is easy to complain about billions of dollars in profits, but what is the value of the investment made to make those billions, what is the ROI of those oil companies. If they are operating on a 5% profit how can you say that they are bullying the public, you already agreed that the government makes more off of their product than they do, so where is the logic in your complaint?