Oil & Gas

Last week, President Obama proposed over $220 billion in new energy taxes in his 2011 budget proposal. I immediately blasted President Obama in a press release, but wanted to give you my extended thoughts on this critical issue.

Kansas is the 9th largest energy producing state in the country. It is the life blood of many of our communities and a great source of our current economic growth -- and is an engine for economic growth for years to come.

I believe that while renewable forms of energy must be pursued, we must first and foremost protect our oil and gas producers and ensure that they are not burdened with excessive regulations and new taxes. Our nation and our world will continue to rely on oil and gas to meet our energy needs for decades and decades to come.

I find the tax increases on the energy industry contained in President Obama's 2011 Budget Proposal, and the so-called, "climate change" legislation currently being discussed in Washington just another example of how Washington is simply out of touch with the rest of the country. Both proposals attempt to punish oil and gas producers by shouldering them with undue economic burdens.

First and foremost we must fight Obama's attempt to repeal the percentage depletion tax deduction. If Obama succeeds in raising taxes in this area it will kill exploration and capital investment for drilling new wells.

Likewise we must fight against Obama's attempts to repeal the deduction for intangible drilling and development costs. Like the proposal to repeal percentage depletion this tax increase would stop new investment in the western Kansas economy.

Finally, Obama is attempting to raise taxes by extending the amortization period for geological and geophysical costs. Our independent producers here in Kansas rely heavily on 3-D seismic imaging to drill more efficiently and limit their risk. Obama's proposal would inhibit the use of this great technological tool to benefit his extreme ideology.

By some estimates, in Kansas alone, these tax increases would result in a direct loss of oil and gas investments of over $150 million dollars annually.

If Obama gets his proposals through, we'll see more jobs lost in manufacturing and in the oil and gas industry. Every farmer who pumps a well, every person who receives royalties, every school teacher and taxpayer benefits from the oil resources in Kansas. Obama's proposals would not only lead to the loss of a precious natural resource, necessary jobs, and a vital tax base in western Kansas, but ultimately higher utility rates, and higher prices at the pump.

For this reason I also reject the business killing regulations that the Obama administration has put forward like the proposed restriction on hydraulic fracturing.

I support hydraulic fracturing; understanding that it allows producers to reach oil and natural gas trapped in rock beds that would otherwise be unattainable. It is responsible for 30 percent of domestic recoverable oil and natural gas. Without fracturing, thousands of wells across the country would be plugged-- taking with them the jobs, and economic activity they currently generate.

Independent oil and gas production is one of the last true free market industries. It is wrong for the Obama administration to attempt to legislate a vital Kansas industry out of existence.

I look forward to advancing policies that promote more drilling and exploration and will fight against policies that hurt our oil and gas producers.

Rob Wasinger

Rob Wasinger
Republican for Congress
First District of Kansas, Open Seat
http://www.RobWasinger.com
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