The 2012 U.S. elections may very well be a turning point for the country on a number of levels, not the least of which is the energy industry. While the economy and health care dominated much of the political debate between President Obama and GOP challenger Mitt Romney in the weeks leading up to the November elections, energy may prove to be the area in which the administration takes the boldest actions in the coming years.
The president will attempt to curb oil and gas tax advantages and attempt to no longer treat oil and gas as part of the manufacturing sector. It shows his mindset, so I think the president will go after intangible drilling costs and the depletion allowance. There’s a deep conflict between the president’s stated objective of weaning the country off dependence on Middle Eastern oil and at the same time making it less attractive to develop our resources within the United States by taking these long-standing tax provisions and repealing them.