The current deductibility of ordinary and necessary business expenses must not be eliminated or otherwise limited for this or any other industry. The ability of independent oil and natural gas exploration and production companies to deduct business expenses – just as other businesses deduct their ordinary and necessary business expenses – remains a key element in attracting investment capital for the industry.
In order to provide affordable and secure supplies of domestic energy to American consumers and reduce our dependence on foreign imports, the development of this nation’s oil and natural gas resources relies on high-cost and high up-front-risk projects that require significant capital.
Tax policy should not pick winners and “by default” losers. Rather, it should be pro-growth and should continue to encourage innovation and the growth of our critical domestic energy supplies.