1. Section 23 (m) of the Internal Revenue Code authorizes" such reasonable [depletion] allowance in all cases to be made under rules and regulations to be prescribed by the Commissioner [of Internal Revenue] with the approval of the Secretary [of the Treasury]."Mentz, Henry Alvan Jr...
MPG’s World-class Project – The Big One is a geological look-alike / a twin to one of the largest (offshore) Oil and Gas Fields in the world. The difference is that MPG’s Big One it is locatedonshoreand is therefore, accessible at a small fraction of the cost and turnaround ti...
“The oil and gas industry has left thousands of orphaned wells from previous fossil fuel booms. Taxpayers may wind up on the hook for the considerable expense of plugging and reclaiming orphaned wells – Cabot Oil & Gas claims to have spent $730,000 per well to cap three shale gas wells ...
The complexities of the oil and gas industry can make keeping up with all the terms and definitions related to drilling difficult. To simplify things, we’ve compiled a glossary of the most important terms related to drilling and to the oil and gas industry. A|B|C|D|E|F|G|H|I|J|K|...
Depletion allowance: Because oil and gas are finite resources that will eventually be exhausted, depletion allowances are granted for a portion of the producing well’s gross income. These allowances can shelter 15% of the annual production from income tax. Deductions can be taken as long as ...
The 1990 Tax Act provided some special tax advantages for small companies and individuals. This tax incentive, known as the “Percentage Depletion Allowance”, is specifically intended to encourage participation in oil & gas drilling. This tax benefit is not available to large oil companies, retail...
However, they have to keep track of 437,000 oil and gas wells, along with thousands of producers. I have to give them A for effort. EIA has one redeeming report in the 914. Dennis also uses their shale well numbers, which he is happy with. Everything else on the site, I am ...
The following is an article I prepared for the Peak Oil Review, which is produced by the Association for the Study of Peak Oil and Gas. The United States was blessed with abundant reserves of crude petroleum, high quality and easily taken from the ground. Up until 1973, we were the ...
special deduction under new Section 199A. This new deduction will impact a large amount of taxpayers in the oil and gas industry because a significant number of businesses are structured through partnerships owned primarily by large private equity groups (PEGs), private investors, and family groups...
This is perhaps the most enticingtax breakfor small producers and investors. This incentive, which is commonly known as the "depletionallowance," excludes from taxation 15% of allgross incomefrom oil and gas wells.6This special advantage is limited solely to small companies and investors. Any co...