Replies to This Discussion

Permalink Reply by Bobi Carr ("parker") on May 9, 2010 at 9:31

Doob,

I see your point, but at some time shouldn't government get back to building roads and bridges and schools instead of deciding what companies get a tax break and what companies don't?

And if the tax break is necessary why isn't it also given to Louisiana companies?

If I open a McDonalds that employes Louisiana citizens, I don't get to do it tax free.

• ▶ Reply

Permalink Reply by Les Bamburg on May 9, 2010 at 10:39

Doob, much of the offshore oil is refined (processed) in Texas or Mississippi rather than Louisiana. A lot (if not most) of the oil refined in Louisiana is actually produced in other countries such as Venezuela, Mexico, Saudi Arabia etc that are not related to offshore production. In fact there are recent projects being implemented to bring crude oil from Canada to the Gulf Coast.

Also keep in mind that a high portion of current offshore production is natural gas rather than oil and is not supporting any refinery taxes.

The bottom line is Federal offshore production is primarily benefiting other states and should be generating more money for Louisiana to address wetlands and other issues.

• ▶ Reply

Permalink Reply by Bobi Carr ("parker") on May 8, 2010 at 16:36

Doob,

If it was passed as a "relief" act at a specific time, why would we still need to be giving relief now that prices have risen so significantly?

• ▶ Reply

Permalink Reply by The_Baron on May 10, 2010 at 3:01

I havn't seen any nigerian rebels in the Gulf of mexico lately, but I do agree that royalty relief is an important incentive.

• ▶ Reply

Permalink Reply by Doob on May 9, 2010 at 3:44

The relief act, proposed by Clinton in 1995, expired in 2000. For most years there was a price qualifiacation in place. Most of the controversy is about a 2 year period when MMS left the price issue off the lease. Because of the high prices from ~2005 on, this became a costly mistake.

• ▶ Reply

Permalink Reply by drilltheshale on May 12, 2010 at 11:12

I have to agree with what Mr. Foster has been pushing for years. An oil-processing tax is a no-brainer for Louisiana--one that would benefit our state while 90% of the revenue would be raised from out-of-state sources. They use our infrastructure and our unique location and Louisiana has gotten a disproportionately small return.

Granted, Louisiana has gotten millions in revenue from offshore O&G over many years, but that's while the companies using our infrastructure to provide fuel to the rest of the nation have been making 100's of Billions.

I would just prefer a square deal. And to be straight, it would be an offer they couldn't refuse.

• ▶ Reply

• ‹ Previous
• 1
• 2
• 3
• Next ›
• Page