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All Posts from October, 2010

Taxes > Earnings

Posted: October 28, 2010 by Ken Cohen

We announced our third-quarter 2010 earnings today, and I thought you’d be interested in a couple of facts and figures about our earnings and our taxes.

Today’s lead editorial in the New York Times (“Remember renewable energy?”) calls for more “generous subsidies” to support renewable energy sources.

The economics of ethanol

Posted: October 26, 2010 by Ken Cohen

U.S. Secretary of Agriculture Tom Vilsack has a letter to the editor in today’s Wall Street Journal supporting biofuels and describing the U.S. oil and gas industry as receiving “billions of dollars in tax breaks.” He must be holding the balance sheets upside down. In reality, ethanol is already the most heavily subsidized fuel – and the oil and gas industry already pays among the highest taxes in the private sector.

Oil and natural gas projects, no matter where they are in the world, require significant planning and investment to get them up and running. A casual observer is often unaware of the years of preparation and logistics required – and the amount of economic activity that results – when creating the infrastructure that helps deliver essential energy supplies to the world. But that’s not the case for citizens of the Pacific Northwest and Montana, who have for some time been reading and hearing about our Kearl Module Transportation Project in the local and national media, as well as on various blogs.

You might have heard that the EPA has decided to authorize the use of gasoline with a 15 percent blend of ethanol (E15) – beyond the current 10 percent blend (E10) – in vehicles built since 2007. In doing so, I think the government is actually demonstrating some real problems with the federal Renewable Fuel Standard (RFS) – problems that could hurt consumers, the auto industry and other businesses alike.

Here we go again. As the mid-term elections draw near, politicians are again targeting America’s oil and gas industry for attack in hopes of scoring points with voters. You could be forgiven for thinking that energy companies are actually on the ballot!

  • Worth a deeper look...