In a world where $100-a-barrel oil is here to stay, there’s no need to pad the industry’s bottom line.
When Saudi Arabia’s longtime oil minister, Ali Al-Naimi, opens his mouth, the world listens. Yesterday, during a speech in Hong Kong, he delivered a message that U.S. policy makers in particular would do well to take note of. The days of $100-a-barrel crude, he told the crowd, are here “for the foreseeable future.”
If he’s right, one thing that shouldn’t be around for the foreseeable future are the outdated tax credits that protect oil and gas companies, which will be plenty profitable in a world of $100-a-barrel oil. If Democrats and Republicans are looking for safe ground to set up camp for the budget negotiations, let’s start with these $7 billion-a-yearsubsidies.