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U.S. Department of Energy
Office of Scientific and Technical Information

Wildcatters: tax will curb oil search

Journal Article · · Energy User News; (United States)
OSTI ID:6164598
The DOE expects to halt the decline in crude oil production with phased price decontrol, but doesn't anticipate new discoveries from the move because President Carter's windfall tax proposal will have the greatest effect on the independent drillers who are responsible for most new discoveries. Although the two are dealt with in separate legislation, the tax threat will affect response to decontrol measures as drillers wait to find out how much newly discovered oil will be worth. Drilling activity has declined since the tax plan was announced because independent drillers finance exploration from current revenues. If windfall taxes are used to redistribute income for social purposes, the capital for new exploration will not be available.
OSTI ID:
6164598
Journal Information:
Energy User News; (United States), Journal Name: Energy User News; (United States) Vol. 4:21; ISSN EUSND
Country of Publication:
United States
Language:
English