www.mozilla.com Weather Central
Voices
Headlines

War only will add to Middle East problems -7/22/2014, 8:10 AM

Avoiding taxes -7/22/2014, 8:10 AM

Take the win in Iran -7/21/2014, 8:57 AM

The high court's high-handedness -7/21/2014, 8:57 AM

Up in arms in the Capitol -7/20/2014, 4:52 PM

Firefighters weigh in on pay raise -7/20/2014, 4:52 PM

Backpacks for Kids -7/20/2014, 4:52 PM

Our unwillingness to defend ourselves -7/18/2014, 10:51 AM

Remembering a man who championed freedom -7/18/2014, 10:51 AM

GOP split -7/17/2014, 8:38 AM

New Kansas senator -7/17/2014, 8:37 AM

Who'll build the roads? -7/17/2014, 8:37 AM

Reagan: In or out? -7/16/2014, 2:45 PM

'Unbroken' WWII vet more than a hero -7/16/2014, 2:44 PM

Savor the fruits of your labor -7/16/2014, 2:44 PM

Erasing candidate's standards -7/15/2014, 11:36 AM

Returning to Trail Wood -7/15/2014, 10:13 AM

Leaving some in 'suspense' -7/15/2014, 10:13 AM

Strangers in a remarkable land -7/14/2014, 9:11 AM

Courageous or spineless? Our actions decide -7/14/2014, 9:11 AM

Ambition: An unlikely gift to Kansas voters -7/13/2014, 11:16 AM

Beyond the outrage -7/13/2014, 11:16 AM

Water watch -7/13/2014, 11:16 AM

Scenic outlooks -7/11/2014, 9:18 AM

China's research trumps teaching -7/11/2014, 9:17 AM

Important slow news -7/10/2014, 9:42 AM

We've got a promise to keep -7/10/2014, 9:33 AM

The white combine calls -7/9/2014, 10:02 AM

Vote for family values -7/9/2014, 10:02 AM

Politicians making a mockery of my faith -7/9/2014, 10:02 AM

Missing tribute -7/9/2014, 10:02 AM

Rural students deserve 21st Century education -7/8/2014, 9:10 AM

The education table dance -7/8/2014, 9:10 AM

A new virus -7/8/2014, 9:10 AM

Government as God -7/7/2014, 9:38 AM

EPA affecting others -7/7/2014, 9:38 AM

'Narrow' decision from the narrow-minded -7/7/2014, 9:38 AM

The tax trap -7/6/2014, 4:35 PM

Rulings produce 'First Amendment fireworks' -7/6/2014, 4:35 PM

Firefighter salaries -7/6/2014, 4:35 PM

Economic freedom -7/4/2014, 11:54 AM

Protecting our independence -7/4/2014, 11:54 AM

Dan Johnson, 1936-2014 -7/3/2014, 7:12 AM

New Iraq offensive backfires -7/3/2014, 7:11 AM

Setting things straight -7/3/2014, 7:11 AM

'Crapitalism' -7/3/2014, 7:11 AM

Feeding peace throughout the world -7/2/2014, 9:01 AM

Half way is still only half way -7/2/2014, 9:01 AM

Sherow a better choice -7/2/2014, 9:01 AM

Fireworks, part II -7/2/2014, 9:01 AM

Reality show made in Topeka -7/1/2014, 8:53 AM

The justices and their cellphones -7/1/2014, 8:53 AM

LOB defeated -7/1/2014, 8:53 AM

Tragedy explored in 'Broken Heart Land' -6/30/2014, 9:14 AM

Mexico City: The adventure continues -6/30/2014, 9:14 AM

Even our youngest Americans are citizens -6/29/2014, 12:58 PM

Ban on fireworks -6/29/2014, 12:58 PM

It's time to teach active citizenship -6/29/2014, 12:57 PM

The education establishment's success -6/27/2014, 10:39 AM

Piecework professors -6/27/2014, 10:39 AM

Marriage for all -6/27/2014, 10:39 AM

Prairie chicken madness -6/26/2014, 4:17 PM

Omission control -6/26/2014, 10:12 AM

Equal in the eyes of the law -6/26/2014, 10:12 AM

Help wanted -6/26/2014, 10:12 AM

The old red barn -6/25/2014, 9:19 AM

Beware the unimaginable -6/25/2014, 9:19 AM

Early critic of school testing was right -6/24/2014, 8:53 AM

Finding something 'different' in Topeka -6/24/2014, 8:53 AM

Shopping small -6/24/2014, 8:53 AM

Into the classroom -6/23/2014, 8:55 AM

Wow! And thanks to you -6/23/2014, 8:55 AM

Fireworks double-standard -6/23/2014, 8:55 AM

Glass half full -6/22/2014, 5:57 PM

Brownback's experiment wallops taxpayers -6/22/2014, 5:56 PM

Examining the importance of 'where' we speak -6/22/2014, 5:56 PM

Slavery reparations -6/20/2014, 8:33 AM

'Help me plagiarize' -6/20/2014, 8:33 AM

Thank a farmer -6/20/2014, 8:33 AM

Here comes tomorrow -6/19/2014, 8:43 AM

Why Americans dislike soccer -6/19/2014, 8:43 AM

Switching to teaching -6/18/2014, 4:32 PM

Clinic closing good -6/17/2014, 9:59 AM

Other avenues -6/17/2014, 9:59 AM

Land grabs -6/17/2014, 9:59 AM

Lending a helping hand -6/17/2014, 9:59 AM

Mariel revisited -6/17/2014, 9:59 AM

Making for some summer fun -6/17/2014, 9:59 AM

Enough is enough -6/16/2014, 9:24 AM

What happened to April, May revenues? -6/16/2014, 9:24 AM

The VA and the Indians: Business as usual -6/16/2014, 9:24 AM

Water's strength -6/15/2014, 9:56 AM

In mosque fight, religious freedom wins -6/15/2014, 9:56 AM

Power of the woman -6/15/2014, 9:56 AM

Veterans deserve better -6/13/2014, 9:57 AM

School safety -6/13/2014, 9:56 AM

Who owns you? -6/13/2014, 9:56 AM

Proper licensure -6/13/2014, 9:56 AM

Kobach wants to end Medicare benefits -6/12/2014, 9:22 AM

Libertarians versus conservatives -6/12/2014, 9:22 AM

myTown Calendar

SPOTLIGHT
[var top_story_head]

Advantages to nation through oil, gas

Published on -1/16/2014, 10:19 AM

Printer-friendly version
E-Mail This Story

As the American economy continues to struggle for recovery, policymakers and the public need to be aware of the key advantages available to our nation through increased domestic oil and natural gas production.

A recent Harris Interactive poll shows American voters see great value in a strong domestic energy sector. Nine out of 10 respondents said developing more domestic energy in the U.S. is important, and 73 percent support increased domestic oil and natural gas production.

Unfortunately, discussions taking place in Washington threaten to put the strength of American energy at risk. Whenever the debate in Washington turns to spending and debt, some policymakers repeatedly haul out proposals for punitive tax increases on oil and natural gas. This is not a popular idea, according to the poll, which found 81 percent of voters nationwide believe policymakers in Washington should solve the nation's budget issues without raising energy taxes.

Tax reform is another area where voters are wary of the potential for harm to U.S. energy production and energy security. When asked about tax reform, 56 percent of voters said they opposed changes to the tax code that could decrease investment in energy production and reduce energy development in the U.S. versus just 30 percent who said they would support such actions.

Tax reform might help keep America competitive in a global marketplace, but it must be done carefully. Cost recovery measures, such as the percentage depletion deduction and the intangible drilling costs deduction, are neither subsidies nor loopholes but tax provisions critical for American independent oil and natural gas producers to sustain capital availability and formation to promote continued oil and natural gas exploration and production activity. By improving cash flow, these cost recovery measures allow American independent producers to invest more money into creating jobs and producing the energy that keeps our economy running.

For some companies in the retail and service sectors, reduced marginal rates might outweigh the loss of deductions that allow a business to recover costs. But for capital-intensive industries such as oil and natural gas or manufacturing, cash flow and cost recovery typically will be important factors in how they decide to invest in their operations.

Recent studies show repealing percentage depletion and IDCs would result in fewer wells drilled, fewer Americans employed, and less energy produced in the U.S. This impact is both significant and immediate. According to studies, more than 190,000 Americans would be unemployed within one year if percentage depletion and IDCs were repealed; growing to 265,000 jobs lost in a decade. For states where independent oil and natural gas producers are responsible for the majority of production (such as Kansas), oil and natural gas production could fall by as much as 60 percent, and industry workforce could fall by as much as 33 percent.

That kind of impact would be almost impossible to offset just by lowering marginal rates.

Tax reform that damages cost recovery measures such as percentage depletion and IDCs in order to pay for lower rates could hit the brakes on America's energy and manufacturing revolution. It makes no sense to target for higher taxes an industry that is an engine of job creation and revenue generation.

The American oil and natural gas industry has the power to help our slow-growth economy. If federal government tax and regulatory policies would encourage more development of our nation's ample oil and natural gas resources, the oil and natural gas industry could invest more, create more American jobs, increase revenue to government, and produce more of the energy we consume.

That's the kind of bipartisan solution that's needed in Washington today.

Making the right decisions on energy is so important for our nation's energy future.

Energy access, not taxes, remains the key to moving our nation toward energy independence and unlocking new jobs for Americans.

Edward Cross is president of Kansas Independent Oil & Gas Association.

digg delicious facebook stumbleupon google Newsvine
More News and Photos

Associated Press Videos