The Daily News’ March 20 editorial, “Oil tax fundamentals,” calls for an oil tax reform bill that only provides tax cuts (ADN didn’t indicate whether cuts should be for new oil or both new and old oil) when an oil company has increased its oil production. This might be a reasonable approach IF the major oil companies respond in a positive and timely manner to such a tax reform.
What is needed to evaluate this approach is a summary of all new oil production efforts in existing oil production fields in the world and the associated taxation system, over approximately the past 10 years. How many of these new efforts have been initiated in response to a tax scheme that lowers taxes when new oil is produced?
If at least a few, then this approach may be viable. If not, this approach has little if any chance of getting us more oil.
— Jim Lieb