Executives from the five largest oil companies were scheduled to appear
before a Senate finance committee to answer questions about tax breaks that
saved them an estimated $4.48 billion in 2010.
With gas prices over $4.00 a gallon in many parts of the country, and oil
companies reporting profits at all-time highs, some lawmakers are wondering
if tax breaks for oil companies are the best idea when consumers and
government are struggling with debt.
One such tax break allows oil companies to treat royalties paid to foreign
governments as a foreign tax, and so that revenue can be deducted from
declared earnings in the U.S.
Of course, that tax break doesn’t affect the oil companies that are focused
on production in the U.S., like the small companies working the Bakken oil
pool in the Western U.S.
Because the Bakken is a new discovery, many of these companies working the
Bakken have only recently become profitable. That means they have
accumulated tax credits that will help them maximize profits in the future,
with or without the tax breaks currently under consideration.
The Bakken oil pool contains at least 4.5 billions of barrels of oil. And
the recent temporary correction for oil prices has left Bakken oil stocks
trading at very attractive valuations.
One top Bakken stock recommended by Wyatt Investment Research now trades
with a forward P/E of just 11, even though profits will grow 250% this
50% gains or better are expected for this Bakken oil producer.
For more, click HERE.