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Tax hike to put “mom and pop” oil producers out of business

by associate on February 26, 2009

Source: Hebert, H. Josef, “Obama: New tax on oil drilling,” Associated Press/North Dakota News. February 26, 2009; National Stripper Well Association. Press Statement on Obama Administration’s Extraction Tax Policies. 12 August 2009.

Obama sought new taxes on new drilling in his 2010 budget that could put small “mom and pop” producers out of business, according to the group representing “stripper wells” – those yielding only about 15 barrels daily of harder to extract oil, but which add up to over a million barrels per day. This one measure, taken ironically in the name of “energy independence,” could reduce domestic oil output by 15.4 percent and gas output by about 9 percent almost overnight by penalizing small producers at home who produce about as much oil as we import from our friends the Saudis. “The decreased production that will result from the proposed tax increases will have a catastrophic effect upon the American consumer since less domestic oil means higher prices,” said Dewey Bartlett, Jr., chairman of the National Stripper Well Association. “The OPEC leadership will have almost exclusive control over the world-wide pricing of crude oil as well as all products refined from crude oil such as gasoline, jet fuel and diesel fuel.

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