Economic impacts of the differential tax treatment of income derived from oil and gas

Journal Article · Wed Jun 01 04:00:00 EDT 1983 · Oil Gas Tax Q.; (United States)

OSTI ID:5573479

Mead, W J ^[1]; Muraoka, D D; Sorensen, P E

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1. Univ. of California, Santa Barbara

The energy industry, particularly the crude oil and natural gas sectors, has generally experienced differential tax treatment relative to other industries. Until 1969, oil and gas income received distinctly preferential tax treatment. In particular, the percentage depletion allowance and the option of expressing intangible drilling costs, which were instituted over half a century ago, have reduced the tax burden of oil and gas producers relative to other industries. In the aftermath of the 1969 Santa Barbara oil spill, however, the tax treatment of oil and gas has become less favorable. Since 1969, the benefits of the percentage depletion allowance have been substantially reduced. This is evident in the 1980 enactment of the federal Windfall Profit Tax and the subsequent series of similar tax proposals at the state level. These special tax provisions and their economic consequences are described briefly. 16 references, 3 tables.

• OSTI ID: 5573479
• Journal Information: Oil Gas Tax Q.; (United States), Journal Name: Oil Gas Tax Q.; (United States) Vol. 31:4; ISSN OGTQD
• Country of Publication: United States
• Language: English

Related Subjects

02 PETROLEUM
020700* -- Petroleum-- Economics
Industrial
& Business Aspects
03 NATURAL GAS
030600 -- Natural Gas-- Economic
Industrial
& Business Aspects
29 ENERGY PLANNING, POLICY, AND ECONOMY
294002 -- Energy Planning & Policy-- Petroleum
294003 -- Energy Planning & Policy-- Natural Gas
FINANCIAL INCENTIVES
INDUSTRY
NATURAL GAS INDUSTRY
PETROLEUM INDUSTRY
TAXES