EnergyFactor By ExxonMobil | Pespectives has a new home

Tax Policy

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.

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!


Congress is back at work this week, and the Senate has already taken up the issue of raising taxes on the oil and gas industry. This time, the Senate got it right by rejecting Senator Bill Nelson’s amendment to the Small Business Bill. Part of the amendment would have eliminated a manufacturing and production tax provision – but only for the five major integrated oil and natural gas companies. Regular readers of Perspectives have heard me talk about tax issues throughout the summer. That’s because there are widespread misconceptions about the taxes we pay as U.S. oil and gas companies, as well as the tax provisions for which we qualify.

Getting something in return

Posted: August 30, 2010 by Ken Cohen

I’ve talked a lot on this blog about proposed changes to the U.S. federal tax code, and how punitive taxes would undermine American job creation and energy security. Many Americans may not fully realize how significant ExxonMobil’s tax contribution is and what it means to the American economy. A few comparisons might help.


Only the most fiscally fit companies can survive in the intensely competitive global marketplace for energy. But a new study by IHS Cambridge Energy Research Associates (IHS CERA) and Deloitte paints a troubling picture of how federal tax rules – and pending tax legislation – are weakening the ability of U.S.-based oil and natural gas companies to compete against international companies.

Long-winded

Posted: August 4, 2010 by Ken Cohen

Andrew Sharpless’ recent op-ed on wind power subsidies is long on rhetoric but short on facts. Let me get one thing straight – I have nothing against wind power. But to claim that our government upholds “unfair policies that favor Big Oil” – and largely neglects renewables like wind – is simply false.



  • Worth a deeper look...