Arrington Defends Oil & Gas From Democrats’ Weaponization of the Tax Code

Congressman Jodey Arrington (TX-19), along with 55 of his colleagues, sent a letter to House Speaker Nancy Pelosi and Leader Steny Hoyer demanding they do not target the oil and gas industry and undermine our energy independence with punitive tax increases.

Topline Points From Arrington Letter: Democrats are targeting oil and gas by denying them the ability to use the tax code for ordinary and necessary deductions, in a manner offered to every other industry.

Changing how the industry recovers costs will especially hurt small energy producers. It will also harm farmers, ranchers, and retirees who rely on royalty payments from energy production on their land...

Democrats are seeking to undermine the oil and gas industry’s ability to continue their investment and utilization in carbon capture technology for enhanced oil recovery.

70% of America’s energy needs are met by the oil and gas sector, giving affordable and reliable energy, at a low cost, to millions of households. Our abundance of oil and gas has given America energy independence, improved national security, and provided us with economic advantages over foreign competitors. Cost To The Oil & Gas Industry:

Intangible Drilling Costs (IDCS) often represent 60-80% of total production costs—repealing them could result in the loss of over a quarter million jobs by 2023 The repeal of Percentage Depletion would eliminate 84,000 mainly small business jobs per year and harm royalty owners as well.