Replies to This Discussion

Permalink Reply by Nate on March 31, 2012 at 2:01am

My experience is the allowance can be used equally between producers and royalty owners. Essentially all o&g income. So if Obama and friends succeed in eliminating it we all lose per usual...

Permalink Reply by 0i7okn54zwbdo on March 31, 2012 at 7:41am

Nate's got it mostly right. The depletion allowance is just an amortization tool used for valuation by O&G companies. From the first day a well is drilled it is a depreciating asset.

Permalink Reply by Dee on April 1, 2012 at 12:39am

Thank-you both for replying. That was my opinion when I read what they are proposing. I hope others realize what is in the wind and call their representatives and voice their concern. We are the 'Big Oil' that the politicians are attacking on the nightly news nearly every night.

Permalink Reply by Dee on April 8, 2012 at 1:53pm

I received a reply to a question I asked our Ohio Senator that is running for re-election this year. It was a non-answer evasive diatribe about everything to do with oil, natural gas, wind power, and renewable energy sources. I suggest that everyone call, email or buttonhole their elected officials and determine where they stand on this issue.