![]() Perhaps anticipating these difficulties, Biden was willing to risk upsetting those on the left of his own party by scaling down some funding promises for federal research and procurement linked to clean-energy innovation. Many observers are predicting a rough ride for the bill in a Congress where the Democrats have the slimmest of majorities and are facing an almost certain filibuster strategy by the Republicans. He added: "We will continue to advocate for a tax code that supports a level playing field for all economic sectors along with policies that sustain and grow the billions of dollars in government revenue that we help generate." Macchiarola insisted that the oil industry "receives no special tax treatment." What is the future for supermajors? Big Oil bloc disperses as growth strategies diverge "Targeting specific industries with new taxes would only undermine the nation’s economic recovery and jeopardise good-paying jobs, including union jobs," he said in a statement. "This proposal misses an opportunity to take an across-the-board approach to addressing all our infrastructure needs - including on modern pipelines. Oil industry waryįrank Macchiarola, senior vice president of policy, economic and regulatory affairs for the American Petroleum Institute, said the industry lobby group supported the administration's goal of modernising infrastructure and addressing the risks of climate change, but warned against increasing the tax burden. The Biden plan would also change the tax code to close loopholes that allow companies to move profits overseas, according to a briefing paper released by the White House.īiden’s plan would also set a “clean energy standard” mandating utilities to produce power that is carbon-free by 2035. In a 2019 report, the Washington DC-based Environmental and Energy Study Institute (EEIS) calculated that the benefits of indirect subsidies, including Last In-First Out accounting, foreign tax credit, and domestic manufacturing deduction, run to hundreds of billions of dollars. Carbon capture and sequestrationīiden’s funding requests include $35 billion for “technology breakthroughs addressing the climate crisis” and $15 billion for “demonstration projects” for climate research and development priorities.įive strategies for energy transition: how do the supermajors stack up?Īlthough Biden did not flesh out the details of how the administration would claw back revenue by ending tax relief for oil companies, a 2017 congressional joint committee on taxation said eliminating direct tax breaks for intangible drilling costs would generate $1.59 billion in revenue in that year, or $13 billion over ten years.įor percentage depletion - an accounting method that works like value depreciation - the joint committee said ending relief for coal, oil and natural gas would generate $12.9 billion over ten years. ![]() Many of these old wells and mines are located in rural communities that have suffered from years of disinvestment," the White House stated.īiden’s job-creation hopes were supported by a joint paper from Columbia University, which estimates that a significant federal effort to plug about 500,000 orphaned and abandoned oil and gas wells could provide as many as 150,000 jobs. "Hundreds of thousands of former orphan oil and gas wells and abandoned mines pose serious safety hazards, while also causing ongoing air, water, and other environmental damage. These wells can leak methane into the atmosphere, by some estimates emitting as much carbon pollution as 2 million passenger vehicles per year. OPINION: Work needed to turn ambition of North Sea deal into a reality
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