Facts about North Dakota

[Havakasha]

LIES, LIES, LIES. lmfao.

Yes Obama plans to nationalize oil and gas, I mean he is an African, Muslim, Marxist, UnAmerican spy. LMFAO. "fair and balanced"

[Havakasha]

What this ignores, of course, is that American oil and gas companies have had a century of built-in advantages. For example, they are allowed to deduct "intangible drilling costs" -- including labor and drilling fluids -- the moment a well is tapped (even if it proves to be dry). And then there's the "depletion allowance," which allows certain extractors to shelter around 15% of a well's production from the IRS. And deductions for royalties paid to foreign governments. And the oil and gas liability cap that remains at just $75 million, more than a year after the BP (BP) rig explosion. Then there's Section 199, which allows profitable oil and gas companies to deduct 6% of net income.
To be sure, there also are tax breaks for green-energy companies. But most of those handouts are temporary -- including low-interest loans from the 2009 stimulus -- with renewables receiving only around 5% of some $20 billion worth of federal energy tax breaks (excluding subsidy-rich ethanol, which is a separate but equal tax tragedy). Some of these subsidies are very important to individual companies, but the renewable-energy industry's best long-term play is to support the elimination of all federal energy handouts. "If the playing field is truly leveled by a good-faith proposal to eliminate all subsidies for fossil fuels and renewables, I am very confident that renewables will compete effectively," says Josh Green, a venture capitalist focused on the clean-tech market.
Solar-energy-generation costs, for example, fall around 8% each year as technologies improve and capacity expands. U.S. Energy Secretary Steven Chu recently said that he could see solar and wind "being cost competitive without subsidy with new fossil fuel" by the end of this decade. Imagine how must faster the gap could close if the competition wasn't on government-prescribed steroids.
The oil industry counters by claiming that the elimination, or even reduction, of its federal largesse will cost both production and jobs. Hogwash. U.S. oil companies drill domestically for one reason: Their product can be found here. And that will continue as long as there is local supply and global demand. If U.S. crude oil production was tied directly to taxes, then it should have grown between 1999 and 2007, when federal subsidies doubled. Instead, it actually fell 14%.
What oil companies truly fear, I think, is unshackled innovation -- and even a modest loss of market share. Rather than trying to outsmart the upstarts, the oil companies spend their time trying to scare us into codifying their supremacy. ConocoPhillips (COP) CEO James Mulva recently said that a Senate proposal to end $4 billion of oil subsidies was "un-American." No, Mr. Mulva, it's pro-capitalism.
Posted in: cleantech, energy, oil

http://finance.fortune.cnn.com/2011/...ax-breaks-now/

[SiriuslyLong]

LIES, LIES, LIES. lmfao.

Yes Obama plans to nationalize oil and gas, I mean he is an African, Muslim, Marxist, UnAmerican spy. LMFAO. "fair and balanced"

You said that.

[SiriuslyLong]

What this ignores, of course, is that American oil and gas companies have had a century of built-in advantages. For example, they are allowed to deduct "intangible drilling costs" -- including labor and drilling fluids -- the moment a well is tapped (even if it proves to be dry). And then there's the "depletion allowance," which allows certain extractors to shelter around 15% of a well's production from the IRS. And deductions for royalties paid to foreign governments. And the oil and gas liability cap that remains at just $75 million, more than a year after the BP (BP) rig explosion. Then there's Section 199, which allows profitable oil and gas companies to deduct 6% of net income.
To be sure, there also are tax breaks for green-energy companies. But most of those handouts are temporary -- including low-interest loans from the 2009 stimulus -- with renewables receiving only around 5% of some $20 billion worth of federal energy tax breaks (excluding subsidy-rich ethanol, which is a separate but equal tax tragedy). Some of these subsidies are very important to individual companies, but the renewable-energy industry's best long-term play is to support the elimination of all federal energy handouts. "If the playing field is truly leveled by a good-faith proposal to eliminate all subsidies for fossil fuels and renewables, I am very confident that renewables will compete effectively," says Josh Green, a venture capitalist focused on the clean-tech market.
Solar-energy-generation costs, for example, fall around 8% each year as technologies improve and capacity expands. U.S. Energy Secretary Steven Chu recently said that he could see solar and wind "being cost competitive without subsidy with new fossil fuel" by the end of this decade. Imagine how must faster the gap could close if the competition wasn't on government-prescribed steroids.
The oil industry counters by claiming that the elimination, or even reduction, of its federal largesse will cost both production and jobs. Hogwash. U.S. oil companies drill domestically for one reason: Their product can be found here. And that will continue as long as there is local supply and global demand. If U.S. crude oil production was tied directly to taxes, then it should have grown between 1999 and 2007, when federal subsidies doubled. Instead, it actually fell 14%.
What oil companies truly fear, I think, is unshackled innovation -- and even a modest loss of market share. Rather than trying to outsmart the upstarts, the oil companies spend their time trying to scare us into codifying their supremacy. ConocoPhillips (COP) CEO James Mulva recently said that a Senate proposal to end $4 billion of oil subsidies was "un-American." No, Mr. Mulva, it's pro-capitalism.
Posted in: cleantech, energy, oil

You should be posting links and or credits to keep Charles out of trouble.

[Havakasha]

Oops. Typing too fast and forgetting. Thanks

I thought this was pretty funny in a way. Its from North Dakota tourist board.


The Downsides Of The Oil Rush

However, before you pack up your bags, make sure you take a realistic look at the entire situation. Just like rushes before in history, there are downsides to this rush.

Housing

Because so many people have flocked to North Dakota, there is a housing shortage. Many people are sleeping in their cars or in RVs in parking lots and camp grounds. The oil companies set up “man camps” which are like dorm housing for the oil field workers, but once reasonable housing has skyrocketed to $1,500 a month for a one bedroom apartment. Of course, you would be lucky to find the apartment to rent.

Crime

Many of the sleepy North Dakota towns experiencing the growth due to the oil boom are unaccustomed to crime. For instance, in Willistown, reported crimes tripled. According to CNN Money, “Assault and battery incidents in Williston rose 171% to 38 charges last year. Two years ago, there may have been three-to-four violent crimes a week. Now, it’s an average of two or three a night.” Crimes related to drug and alcohol abuse such as pharmacy thefts and domestic violence are also on the rise.

Traffic

Another drawback is the traffic. The small towns in North Dakota have small roads and dirt roads. Now, they are filled with workers and semi-trucks. Infrastructure can’t keep up with the population growth. In addition, there are more intoxicated and impaired drivers. Local resident Michelle Falcon-Nelson states, “I drive 15 miles to work everyday with my two children and we have about at least two to three near car accidents a week. . .The traffic is horrible and our road infrastructure was not ready for the hundreds of oil field trucks that tear it up. This week alone, there were four semi truck accidents in four days.” (CNN Money)

[SiriuslyLong]

Oops. Typing too fast and forgetting. Thanks

I thought this was pretty funny in a way. Its from North Dakota tourist board.


The Downsides Of The Oil Rush

However, before you pack up your bags, make sure you take a realistic look at the entire situation. Just like rushes before in history, there are downsides to this rush.

Housing

Because so many people have flocked to North Dakota, there is a housing shortage. Many people are sleeping in their cars or in RVs in parking lots and camp grounds. The oil companies set up “man camps” which are like dorm housing for the oil field workers, but once reasonable housing has skyrocketed to $1,500 a month for a one bedroom apartment. Of course, you would be lucky to find the apartment to rent.

Crime

Many of the sleepy North Dakota towns experiencing the growth due to the oil boom are unaccustomed to crime. For instance, in Willistown, reported crimes tripled. According to CNN Money, “Assault and battery incidents in Williston rose 171% to 38 charges last year. Two years ago, there may have been three-to-four violent crimes a week. Now, it’s an average of two or three a night.” Crimes related to drug and alcohol abuse such as pharmacy thefts and domestic violence are also on the rise.

Traffic

Another drawback is the traffic. The small towns in North Dakota have small roads and dirt roads. Now, they are filled with workers and semi-trucks. Infrastructure can’t keep up with the population growth. In addition, there are more intoxicated and impaired drivers. Local resident Michelle Falcon-Nelson states, “I drive 15 miles to work everyday with my two children and we have about at least two to three near car accidents a week. . .The traffic is horrible and our road infrastructure was not ready for the hundreds of oil field trucks that tear it up. This week alone, there were four semi truck accidents in four days.” (CNN Money)

That's economic opportunity. Building infrastructure - roads and sewage lines / treatment.... public union jobs.... Construction of houses that will need dishwashers, carpeting, refrigerators.................... That's demand. Real demand.

[Havakasha]

Just pointing out some simple truths that you cant be utopian about everything going on in North Dakota. No one opposes economicopportunity, just one sided political talking points.

[SiriuslyLong]

Now I know with certainty that you don't read anything anyone else posts as I've made this exact same point very recently. Enjoy your igornant bliss.

[SiriuslyLong]

Just pointing out some simple truths that you cant be utopian about everything going on in North Dakota. No one opposes economicopportunity, just one sided political talking points.

Yeap, for sure, an example of economic expansion and demand creation by private industry is indeed a "one sided political talking point."

You do realize what a stupid comment that was. Glad I caught it and memorialized it.

[Havakasha]

I know you read better than that. THe simple one sided talking point is trying to turn case of North Dakota into an all encompassing statement about our energy future.