Newspaper article THE JOURNAL RECORD

Bush, Boren Work to Improve U.S. Energy Situation

Newspaper article THE JOURNAL RECORD

Bush, Boren Work to Improve U.S. Energy Situation

Article excerpt

A couple of weeks ago, President George Bush said Americans need to become more actively concerned about our energy position.

"Right now we're fat, dumb and happy about our energy situation," Bush said in his national news conference Jan. 24.

Last year, domestic crude oil production had the sharpest decline in history while total petroleum imports reached a 10-year high, according to the American Petroleum Institute.

The Tax Reform Act of 1986 cut out a huge chunk of investment money available for oil and gas drilling programs and the simultaneous collapse of the energy market drove investors away.

Bush has directed the Energy Department to develop a national energy strategy, however, which is due in first draft form April 1.

Meanwhile, U.S. Sen. David Boren, Seminole Democrat, chairman of the Senate Energy and Agriculture Taxation Subcommittee, has introduced bills to spur domestic exploration and production and provide incentives for enhanced oil production.

"Our country's reliance on imported oil is a threat to our economic and national security," said Boren.

"We in Oklahoma have recognized this all along. With these continued warning signals, Americans from around the country need to realize our domestic production has sunk too far for too long, and the downward trend must be turned around."

In one bill, Boren proposes to provide for an exploration and development tax credit, a credit for maintaining marginal or stripper wells and elimination of the intangible drilling costs as a preference item on the Alternative Minimum Tax.

Another proposal would provide incentives for enhanced oil recovery from drilled wells.

He said energy issues have captured the attention of Congress, if not the general public.

"The success in repealing the so-called Windfall Profit Tax proves that Congress can fix past wrongs and help oil producers," he said.

"Enacting needed incentives will be at the top of my agenda during the 1990 congressional session". . .

- Investors' are finally starting to look at oil and gas investments again, but a lot depends on the structure of a program due to changes in the tax code.

"For the first time since 1981, investors and their representatives are again seeking to participate in oil and gas ventures," said Lewis G. Mosburg Jr., a Tulsa attorney.

"To tap the market, or to invest intelligently, you must understand the new rules of the game."

Mosburg is conducting a seminar in Tulsa May 7-9 on strategies to raise investment money. It is sponsored by Tulsa University, which is also sponsoring a seminar on how to market oil and gas programs March 7 and 8 in Houston and April 18 and 19 in Denver.

Arthur J. "Jerry" King, vice president in charge of marketing and new business development for Everflow Eastern Inc. …

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