The oil and gas industry escaped new taxes in the congressional budget deal, keeping in place breaks for energy companies.
Independent Petroleum Association of America spokeswoman Julia Bell said the group was “encouraged that the budget deal doesn’t jeopardize the industry’s tax provisions,” the Houston Chronicle said.
There’s a cut to an ulta deep-water research program funded by the government, and companies will be capped on interest they can collect on on royalty overpayments, instead of collecting above-market interest under current policy.
Otherwise the budget deal spared the oil and gas industry — the brightest performer in the U.S. economy.
“The budget agreement lawmakers unveiled this past week also would implement a long-stalled U.S.-Mexico treaty governing oil drilling along the two countries’ maritime boundary in the Gulf,” the Houston Chronicle said.
The final deal will end the Ultra-Deepwater and Unconventional Natural Gas and Other Petroleum Resources Research Program. It was created in 2005 but has been targeted by the Obama administration, particularly after the huge oil and gas finds in major shale formations in Texas, North Dakota, and Pennsylvania.
“The agreement also would permanently repeal the federal government’s authority to accept crude for the strategic petroleum reserve as part of a royalty-in-kind deal with oil companies. Such royalty-in-kind programs generally have allowed companies to transfer the actual commodity — rather than write a check — for royalties owed the government, but they have been criticized for their potential for abuse,” the Houston Chronicle said.