vailcat - 10/1/2015 15:29
You can depreciate a well with accelerated depreciation. Basically same as sect 179 deduction. Either way you end up paying taxes wether it's now or later. You still pay.
There's is depletion allowance also
Of course I paid my crop insurance bill the other day that protects me from crop failure and revenue decline(dry hole in oil world) but I only paid 23.6% of the total because the rest is welfare paid by USA. Pretty sure the dry hole insurance wasn't subsidized. Let alone available. Makes me wonder do they have insurance against revenue declines. Only thing available to them is hedging futures or derivatives.
Speaking of big oil conspiracies who drove down the price in that market? Was it the traders screwing them over like they do the farmers? I wonder if over at newoiltalk.com they are talking about how dumb the traders are and that they just don't get it there's no oil left anywhere.
It's all so hypocritical when you look at the big picture of the pot calling the kettle black.
Well - - - Russia really really needs some cash and oil (and gas) is movable and salable.
Iran (IIRC) is in the same boat waiting for the nod to start selling.
Most of the Arabian peninsula has nothing but tourism (developed by petrobucks) and oil so they are going to sell no matter what!
Venezula - - - same sort of boat.
Congo - - - similar.
I may have missed some but they are selling because they need money and so they sell (no matter the price!!).
So its not a trader thing its a "I need my bling" or "my staff needs wages" or "I can't stand this cheap champagne" or what have you and they keep selling.
In the long run its really not helping them but that level of people doesn't really care.
(something like most of north american elected officials - - - they just vote themselves a pay raise when they feel like it!) | 
Shell spends $7 byn for dry hole in the artic.
