Thursday, April 28, 2011

Oil And Gas Stocks

This is a Sponsored post written by me on behalf of Andrew Johns. All opinions are 100% mine.

I just came back from the gas station where I paid $4 a gallon for gas. With $5 per gallon gas on the horizon and $6 per gallon a distinct possibility, some relief is definitely necessary. In an attempt to alleviate the pressure at the pump, legislators are looking at repealing tax breaks given to oil and gas companies. Some other proposals involve eliminating manufacturing tax deductions, reducing a tax credit for royalties paid to other governments and imposing an excise tax on certain Gulf leases. The recovered revenue from oil and gas producers would be used to promote clean-energy development.

Would repealing these subsidies lower gas prices? The industry insists that such plans would not help consumers and released a study showing that oil and gas stocks outperformed other stocks in public pension funds in four states: Michigan, Missouri, Ohio and Pennsylvania. Essentially, oil and gas stocks are not owned by faceless corporations, they're owned by millions of regular people. Oil and gas stocks have been performing quite well lately. For example, Exxon Mobil, the world’s largest company by market value, recently reported its net income jumped 69 percent to $10.7 billion in the first quarter.

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