The Top 10 Energy Stories Of 2017

Neil Atkinson, head of the IEA’s Oil Markets and Industry Division warned: “There are still not enough signs of investment beginning to return, and that raises the risk of tightening of the market in the next five years and a risk to the stability of oil prices. There is at least a possibility of going back to the situation we had ten years ago where oil prices were very, very high at a time when demand was growing.”

Meanwhile, the IEA also reported in April that global oil discoveries in 2016 fell to a record low.

Tax Reform Boosts the Energy Sector

Perhaps the most significant energy story of the year happened in December. Congress passed a massive tax overhaul, which the President has now signed. The new law will drop the corporate tax rate to 21% from the current 35%.

Energy companies stand to benefit the most. In addition to the drop in the tax rate, the law was changed to allow deduction of capital expenditures in the year they are incurred. This change will further lower the tax burden for the energy sector while encouraging more capital spending. Higher earnings across the energy sector should ensue.

1 2 3
View single page >> |


 

How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.