Natural gas taxes

Governor Wolf’s proposed budget plan for including an additional severance tax on natural gas development in Pennsylvania has been criticised by API-PA Executive Director Stephanie Catarino Wissman as it will harm job growth and weaken the state’s economy.

Wissman said, “this governor’s proposed tax hike could threaten the future of our state’s best job creators. The current local impact tax, which is collected from every shale drilling site in the state, has distributed more than US$630 million to communities since 2012, including more than US$224 million in just 2014. That’s on top of over US$2.1 billion in state and local taxes already generated by our industry.”

As recorded by the Governor’s Department of Environmental Protection, Pennsylvania continues to shatter the commonwealth’s records in natural gas production, producing more natural gas each year. Last year, the commonwealth was among the top two states in the nation for natural gas production with 4 trillion ft3 of natural gas produced, a 30% increase on 2013’s record production numbers.

Wissman concluded, “more growth means more jobs and more revenue; higher taxes mean driving development away from Pennsylvania, costing jobs and the loss of revenue which can pay for education, transportation, healthcare, and other state programs. The governor should focus on choosing forward looking pro energy policies that will continue to benefit the commonwealth and its citizens.”


Edited from press releases by Claira Lloyd

Published on 05/03/2015


Get your FREE Oilfield Technology magazine »

Get your FREE trial of Hydrocarbon Engineering magazine »

Get your FREE trial of World Pipelines magazine »


 
 

Related articles

Tax incentives to boost Malaysian oil production

While tax incentives are set to boost oil production in Malaysia, further fiscal changes are unlikely in the short term.

Taxes could cost jobs and revenue

The American Petroleum Institute has said that higher taxes on the oil and gas industry could cost jobs and revenue

Taxes and the oil and natural gas industries

Two notes from the American Petroleum Institute regarding new oil and natural gas industry taxes.

Tax return: reinstatement of the Kazakh oil export duty motivated by domestic political uncertainty

Political uncertainty and renewed confidence in Kazakhstan’s investor appeal has led to the reinstatement of Kazakh oil export duty to squeeze foreign investors’ profit margins.

Recommend magazines

  Hydrocarbon Engineering  Oilfield Technology  World Pipelines