GRATTON, PATRICK J. F., Patrick J. F. Gratton, Inc., Dallas, TX

ABSTRACT: Effects of Government Policies on U.S. Exploration and Production, Some Changes for the Better

Over the last 100 years state, national and multinational policies have alternately stimulated and restrained the petroleum industry. Many of the problems of domestic oil producers can be traced to poorly conceived federal policies. However, in the last few years a series of small state and federal initiatives to help producers have become law.

Alternative minimum tax relief, step-scale royalties on federal lands, severance tax reductions, gas proration, some Clean Air Act implications, probable North American Free Trade legislation, likely higher "marginal" income tax rates all positively more than offset the negatives of tougher environmental rules and regulations on drilling and operating.

Collectively, these incremental changes are becoming important in encouraging U.S. production. At long last a spirit of (wary) co-operation between industry and government seems to be emerging. For the first time in almost a decade the future looks a little brighter for U.S. producers, especially independents!

AAPG Search and Discovery Article #90987©1993 AAPG Annual Convention, New Orleans, Louisiana, April 25-28, 1993.