Energy Independence

[Conan71]

You are absolutely right...that little op-ed was some propaganda - anti-propaganda to the oil industry distortions put out to scare and intimidate people into just shutting up and sitting down so they can go about their business without "unwarranted government intrusion" - like any kind of regulation.


The first three things, which were so quickly jumped over are just some of the benefits that big oil gets that other industries don't.  Want to address them?  One of my favorites is the intangible drilling costs...fun with accounting!

There's intangible costs to just about every industrial process.  The only way to avoid it is return to the stone ages.  Get your old road bike out and start becoming part of the solution again

[heironymouspasparagus]

There's intangible costs to just about every industrial process.  The only way to avoid it is return to the stone ages.  Get your old road bike out and start becoming part of the solution again

That's not the kind of intangibles we are talking about here.  Different thing altogether - it is as if you could buy a large piece of capital equipment, and then just expense it all at once.  Given the past/present/future value of money analyses, which would you rather do?  Expense something now, or amortize over 20 or 30 years??

[nathanm]

which would you rather do?  Expense something now, or amortize over 20 or 30 years??

Depends on the rest of the tax bill. If it's been an unprofitable year, better to take regular depreciation. If there's a tax bill to offset, better to take it now.

[heironymouspasparagus]

Depends on the rest of the tax bill. If it's been an unprofitable year, better to take regular depreciation. If there's a tax bill to offset, better to take it now.

And when has big oil had a "bad year"?

[Conan71]

And when has big oil had a "bad year"?

About 30 years ago.

[Gaspar]

That's not the kind of intangibles we are talking about here.  Different thing altogether - it is as if you could buy a large piece of capital equipment, and then just expense it all at once.  Given the past/present/future value of money analyses, which would you rather do?  Expense something now, or amortize over 20 or 30 years??

Depends on the rate of depreciation, and economic outlook.  In many cases it can be like 'money in the bank' and in other cases you want to take as much out of play as possible.

[heironymouspasparagus]

About 30 years ago.

Not the "7 Sisters"...it was just the small operators that took it in the shorts.  Exxon, Texaco, etc still did very well.