The U.S. oil and natural gas industry would suffer huge losses if a measure delaying intangible drilling cost deductions is passed, according to a Wood Mackenzie study. The study estimates that this move would result in a production loss of 3.8 million barrels of oil equivalent per day by 2023. "Fiscal stability allows companies to plan and make sound investment decisions. Delaying the deductibility of IDCs would create instability in the U.S. fiscal regime, and lower its relative competitiveness compared to other oil and gas regions," Wood Mackenzie noted.
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