05 August 2008 00:29 [Source: ICIS news]
The National Petrochemical & Refiners Association (NPRA) said that an energy plan announced by the presumed Democrat presidential nominee would discourage investment is domestic US energy resources at a time when the nation needs all possible oil and natural gas production.
In speech in Lansing, Michigan, earlier on Monday, Obama unveiled an energy plan that he said would help end the country’s addiction to oil, what he termed “one of the most dangerous and urgent threats this nation has ever faced”.
Saying he wants to end
He said his plan also would include a windfall profits tax on oil corporations, and that revenue would fund a $1,000 (€640) rebate to taxpayer families burdened by high fuel prices.
The NPRA said in a statement that on the evidence of an earlier
The petrochemical and refiners trade group cited a March 2006 study by the Congressional Research Service (CRS) which found that the windfall profits tax (WPT) imposed on US oil companies in the 1980s “had the effect of reducing the domestic supply of crude oil below what the supply would have been without the tax”.
That effect in turn “increased the demand for imported oil and made the
“In the long run,” said the congressional study, “all taxes distort resource allocation and even a corporate profit tax (either of the pure type or the surtax on the existing rates) would reduce the rate of return and reduce the flow of capital into the industry, adversely affecting domestic production and increasing imports.”
($1 = €.64)
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