Urging Congress to reject provisions of President Barack Obama's budget that would eliminate certain deductions presently available to the oil and natural gas exploration industry.
The bill argues that the proposed eliminations of the intangible drilling costs deduction, percentage depletion allowance, geologic and geophysical costs deduction, and domestic production activities deduction would severely harm Texas's energy sector. It stresses that independent producers, who make up a large part of the state’s oil production workforce, rely on these tax provisions to operate effectively and to continue investing in new exploration and development. Without these deductions, the resolution asserts that job losses would follow, along with reduced capital access for small businesses involved in energy production.
In conclusion, HCR183 seeks to protect the interests of the oil and natural gas industry in Texas by advocating for the preservation of essential tax deductions that support economic stability and job creation in a sector crucial to the state’s economy. The resolution calls on various congressional leaders to acknowledge the pivotal role of independent producers in both state and national contexts, emphasizing that their ongoing viability is integral to the energy landscape of the United States.
HCR183 is a Concurrent Resolution introduced in Texas that urges the United States Congress to reject provisions in President Barack Obama's budget that propose eliminating certain tax deductions available to the oil and natural gas exploration industry. The resolution emphasizes the importance of this industry to Texas's economy, stating that it has been a key contributor since the early 20th century and currently supports a significant number of jobs while generating substantial tax revenue for the state. In particular, it highlights that Texas is the leading state in oil and natural gas production, accounting for a considerable percentage of the nation's total output.
Notably, the resolution points out that while the proposed budget changes might be well-intentioned, they could undermine key objectives such as job creation, energy independence, and support for cleaner energy sources. It makes a case for the notion that independent producers play a significant role in meeting energy demands and reducing reliance on foreign oil. Moreover, it underscores that larger integrated oil companies would not be affected by these proposed changes, indicating that the budget provisions primarily impact smaller producers and could create an unlevel playing field.