study of percentage depletion in the oil and gas industry
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study of percentage depletion in the oil and gas industry

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Published by Office of Research Information Services, Bureau of Governmental Affairs, University of North Dakota in [Grand Forks .
Written in English



  • North Dakota.


  • Gas industry -- Taxation -- North Dakota.,
  • Petroleum -- Taxation -- North Dakota.

Book details:

Edition Notes

Bibliography: p. 39-41.

Statementby H. Donald Stockman.
LC ClassificationsHD9581.U52 N97
The Physical Object
Paginationv, 41 p.
Number of Pages41
ID Numbers
Open LibraryOL5394867M
LC Control Number72612462

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Get this from a library! Technological change and environmental policy: a study of depletion in the oil and gas industry. [Shunsuke Managi] -- "This book provides a comprehensive analysis of technological change and environmental policy within the oil and gas industry." "It identifies and measures the impact of technological change, both in.   Rusty computes his percentage depletion deduction by multiplying his $50, gross income from the oil/gas property by 15%, which is $7, His taxable income from all sources is $,, and Percentage depletion for oil and gas is limited to % of the taxable income from the property, computed without the depletion he limitation is computed for each separate § Taxpayer's 65% Taxable Income Limitation. Philip F. Nelson, the author of LBJ: The Mastermind of the JFK Assassination () has pointed out that the oil depletion allowance, "allowed them to retain percent of their oil revenue tax-tree; its loss, according to World Petroleum magazine, stood to cost the industry as much as $ million .

Percentage depletion is now allowable on transferred proven oil and gas properties for transfers after Octo This repeal is applicable to all domestic oil and gas producing properties. An oil and gas property is proven if, at the time of the transfer, all of the following conditions exist: 1. Any oil and gas has been produced from a mineral deposit which underlies such property. Under percentage depletion, the deduction for the recovery of one’s capital investment is a fixed percentage of the gross income (sales revenue) from the sale of the oil or gas. For oil and gas royalty owners, percentage depletion is calculated using a rate of 15% of the gross income based on your average daily production of crude oil or natural gas, up to your depletable oil or natural gas quantity.   Oil Depletion in the United States and the World The development of modern industrial societies was possible because of cheap and abundant energy in the form of fossil fuels. Today oil accounts for 40% of the primary energy production; natural gas contributes 23%, and coal’s contribution is also 23%.   A taxpayer’s total percentage depletion deduction for the year from all oil and gas properties cannot exceed 65 percent of taxable income, computed without deducting percentage depletion, the domestic production activities deduction, NOL .

  The point at which a region's gas production peaks, as a percentage of its total recoverable resource, is not as well known as it is for oil. It is probable that this share is larger for gas than for oil; and going by the North American experience, which we believe to be more-or-less at peak on gas, the proportion may be around three-quarters. 2 However, unlike oil, where output for a large. @article{osti_, title = {Taxation, depletion, and welfare: A simulation study of the US petroleum resource}, author = {Deacon, R T}, abstractNote = {Exhaustible resources in the United States are subject to taxes on property value, production, and corporate income. As applied in practice each tax can cause high-grading - the elimination of incentives to explore, develop, and produce.   Robert Rapier is a chemical engineer in the energy industry. Robert has 25 years of international engineering experience in the chemicals, oil and gas, and . In extraction and mining industry, entities have fixed assets mines, quarries and wells to extract natural resources like coal, oil, timber, metal, salt etc. Unlike property, plant and equipment that are used during the period, these assets get consumed as a result of extraction. For such assets, depreciation is calculated using depletion method. Depletion is allocation of cost of natural [ ].