This video of Trish Reagan is published in December of 2017. Although she does not address the oil industry explicitly, I think some of her comments do touch on issues related to the business.
It is estimated that 1% of the population in America owns close to 40% of the wealth. This is important because currently the oil industry is stalled due to low oil prices and high inventories. There is not really a need for capital investment when current assets are over producing.
The great economist Thornstein Veblen stated that when an economy is over invested the only thing the super wealthy can do is look for foreign investment. That is not the type of money you save in a bank. Investment in lesser developed countries typically yields higher rates of return. Lower tax rates will not yield higher investment in the US oil industry, and that is exactly what we need to bring back prosperity and jobs for this sector. Several analysts on Bloomberg TV have stated that the US has never recovered fully from its 2008 economic collapse. Bloomberg also reported that dark clouds are on the horizon for many large retailers like J C Penny, that will probably shutdown in 2018 due to low sales.
It seems to me that the right solution is higher taxes for the super wealthy because what this country does need sorely is investment in infrastructure: drinking water, electrical grid, and transportation. Higher water taxes, electricity taxes, driver’s license fees, and toll road fees are not going to be enough – especially when the population is plunging into higher debt levels as it currently is.
I am not against the rich. However, America will not see the benefits of the tax cut because more than likely money will end up offshore, either in foreign investment or a foreign bank in the Bahamas, for instance.
A few years ago, I was working in an engineering firm in downtown Houston when an employee walked by and saw me drinking from a water cooler connected to the city water system. He said, “don’t drink that, drink the bottled water they have here for you, that water taste funny”.
The other day I was driving on the feeder road of the North Sam Houston Parkway (toll). I noticed there were more people driving on the feeder than taking the toll road, the feeder was deadlocked, jammed packed.
People may not think about these things consciously. but they do know it intuitively. They can feel something is just not right. Higher Taxes. I just do not see any other way out.