This year is proving especially critical for the U.S. oil and gas industry with the budget reconciliation bill moving through the House, which could be harmful to oil and gas companies and the economy more broadly.
U.S. Rep. Kevin Brady (R-Texas, 8th) recently joined Jack Belcher on Energy Policy Watch for a discussion on the budget reconciliation bill, including a repeal of oil and gas tax incentives plus unprecedented tax hikes.
The White House is proposing $145 billion of tax hikes, which according to Brady, land on everyone within the industry, from the smallest producers to all the way up the chain.
“If we are not able to stop those tax hikes, at the end of the day, what we’ll see obviously up to a million jobs lost in the oil and gas industry sector,” he said. “Secondly, you’re going to see higher fuel prices and, no doubt, more reliance on foreign sources from Russia and the Middle East.”
On a more positive note, Brady also spoke about carbon capture incentives adding that he is hopeful on finding common ground that allows the U.S. to make affordable energy cleaner rather than the current thinking in Washington, which is to “drive up the prices of energy on everyone and then kill off the oil and gas jobs.”
“That seems to be the prevailing wisdom but there’s a smarter way to address greenhouse-gas emissions while keeping jobs and affordable energy,” he said.
- Reconciliation bill moving quickly (1:50)
- Tax proposals that affect oil and gas (2:45)
- Repeal of oil and gas tax incentives (3:55)
- Carbon and/or methane tax? (5:40)
- Unprecedented tax hikes (7:40)
- “Pre-conference” bill (9:25)
- How about the Senate (10:55)
- Advice to the industry (12:50)
- Any positive developments? (14:10)
Energy Policy Watch is a partnership between Hart Energy and Cornerstone to bring regular video updates on legislative and regulatory actions affecting the energy industry. Guests range from key representatives or congressional staff to relevant cabinet-level officials and executive branch personnel. View More Energy Policy Watch Episodes Here.
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