Quote:
Originally Posted by cptjohnstone
2. Get rid of oil depletion???????????????? That is the same as depreciation, an accounting principle that has been used for at least 100 years
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the only people or companies that get statutory depletion at all are those with average daily production of oil at 1000 bbls a day or less and six million cubic feet of gas. and even then it has several other limiting features other than production limits
exxon mobil or no major company gets statutory depletion.. even small independents dont get it
your mother may get it if she has an oil royalty
a thousand bbls a day is four wells averaging 250 bbls a day to your interest
once a company has around 32 to 33 million in gross revenue or so for a year ..which is what the production limits work out to, you NO LONGER QUALIFY for statutory depletion
you have to be either a royalty owner..a mom and pop..or some small company trying to get going...who are out there risking their ass on drilling where major companies would never drill, taking chances on small projects and drilling far more dry holes than producing ones. What the hell do you think a dry hole is worth? ZERO and do you get depletion on it? its only on production, you get nothing
exxons revenues are around $486 billion, they havent seen a statutory depletion deduction since 1975
ALL NATURAL RESOURCE MINERALS, not just oil and gas, get percentage depletion, the only difference is OIL & GAS, being the bug-a-boo for liberal idiots who dont know a thing, just they think they do, is the only natural resource where percentage depletion is HIGHLY LIMITED
its really pathetic the misinformation about the oil and gas industry