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| From a quick look in Wikipedia the percentage depletion is not like machinery depreciation(which oil companies also have).
>>>Cost depletion[edit]
With this method the original investment is effectively amortized over the productive life of the asset, starting with the original capital investment, the annual percentage being the percentage of the reserves at the beginning of the year that are sold in the course of the year. The amortized amount is deducted from the net income before calculating taxes. The total amount deducted by this method cannot exceed the original value of the capital invested.[2]
Percentage depletion[edit]
With this method, a fixed percentage of the gross income is treated as deductible.[2] The percentage is dependent on the nature of the resource being extracted.[1] It is possible under this scheme for the total deductibles (or indeed the annual deductible) to exceed the original capital investment.[2]<<<
The oil companies subsidies to me that are substantial is all the military spending and nation meddling. What would a cruise ship vacation cost if it had to pay for an aircraft carrier battle group to escort it to and fro?
There are also environmental subsidies which most other do not have. When the BP Gulf oil disaster happened, they were given powers to take command of the US coast and to spray toxic clorexit to sink the oil in order to mask the disaster from view would be a form of subsidy. The grandfathered ability to dump up to 400 different toxic chemicals into gasoline as a refinery daily waste dump is a subsidy when some of those same chemicals are not allowed by OSHA in factories. That the public does not have the right to know what chemicals are being dumped into fracking wells is a form of subsidy.
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E & E continued.
