Trump Tax Plan a $190 Billion Boost to U.S. Oil, Study Finds
- Value of profitable assets to rise 19 percent, WoodMac says
- Lower rates, enhanced expensing outweight cuts to deductions
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When President Donald Trump gives his State of the Union address Tuesday night, he’ll surely tout the sweeping U.S. tax overhaul approved by Congress last month. For the country’s oil explorers, the law should mean an almost $200 billion boost in asset values, one consultant says.
The combination of a lower corporate tax rate, reduced pass-through rates for partnerships and accelerated expensing of capital costs should mean a post-tax increase of 19 percent, or $190.4 billion, for explorers with profitable assets, researcher Wood Mackenzie Ltd. said in a estimate released Tuesday.