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NCND | The biggest argument about oil companies and tax breaks has to do with how they can defer income. They can dewrite off much of a well cost in year one then take profits from that well and use them to drill anbother one. Really no different than how farmers can buy a piece of farm machinery and write the whole thing off in year one. This promotes growth and consumption imho. That's what I have always understood about oil subsidies that are argued about but in reality they are more of a timeframe in which and how income will be taxed. Don't know enough about the rest of the subsidies and what not but I farm and I involved in the oil business. Oil is 100 times tougher than being a farmer plain and simple. Yes there has been very tough years in farming just as there has been in oil. The 2 industries are very very similar in their risk profiles.
The biggest joke about big oil vs family farms is that 90% of the oil is produced by all the little companies. The big 5 oil companies in the world produce only 10% of the worlds oil if memory still serves me. On the flipside the top 10% of farmers produce 90% of the crops in the usa. They are exact opposite industries that over time have been portrayed in misleading ways from what I can see.
Watching ethanol and oil fight is about like watching two 5 year olds in a sand box fight over the same toy. They always both get what they want for most part and in the end they are still two babies with all the sand they could ever need! | |
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David Kruse
