Moratorium is eroding economy, chasing off oil and gas industry

Dear Editor:

As the owner of Oilfield CNC Machining, I have first-hand experience of the negative impact that the restrictions on offshore drilling are having on the Louisiana economy. My business has come to a halt since the moratorium went into effect, but I’m just one of hundreds, if not thousands, of small business owners whose livelihood depends on the oil industry.

Now Congress is considering an amendment that would further damage our domestic energy industry by removing the manufacturing deduction that they receive under Section 199 of the tax code. Many members of Congress think that these new taxes will punish BP and other large oil companies, but the reality is that anything that makes it harder for oil companies to invest in domestic energy projects is going to end up hurting ordinary working people, like me, who depend on this industry to provide for their families.

Continuing the moratorium and adding new tax burdens on top of it will destroy our state’s economy. In the long term, oil companies are going to respond to unreasonable drilling restrictions and taxes here on the Gulf coast by shifting their drilling equipment and resources overseas. Once gone, it’s not likely they will come back anytime soon.

Congress needs to lift the moratorium and stop efforts to raise taxes on our domestic oil and gas industry.

Thomas Clements,

Owner, Oilfield CNC Machining

Broussard, La.