The proposed oil tax could hurt an already struggling industry - KWES NewsWest 9 / Midland, Odessa, Big Spring, TX: newswest9.com |

The proposed oil tax could hurt an already struggling industry

Proposed tax would affect oil industry in West Texas Proposed tax would affect oil industry in West Texas
MIDLAND, TX (KWES) -

According to the Permian Basin Petroleum Association (PBPA), if the proposed tax were to pass the oil business especially here in West Texas would have trouble stay afloat.

Executive Vice President of the PBPA, Steven Robertson said "Currently in West Texas, producers that are out in the field are getting for their oil around $26-$27 dollars per barrel. If they absorb that it means  they would be gaining $16-$17 dollars per barrel. They can't operate at those prices."

The reasoning behind the proposed tax allows for improvement with transportation across the United States. Robertson believes improving one area should not have to come at a cost to another.

"If you're putting a tax on an industry that industry go out of business you're not going to generate any kind of revenue because there's not going to be any companies to tax," said Robertson.

The PBPA said the timing of the proposed tax is off.

"If the proposal of a ten dollar tax when oil was $110 or $120 dollars per barrel there would have been outrage from the industry but probably not as much outrage from anybody else," said Robertson.

Robertson said time is what will help the oil industry in the long run.

"Thankfully in West Texas we have a lot of very strong companies, companies that have been around for a long time. If this tax isn't put in place the industry out here in West Texas is going to be able to recover and we are going to be able to put those people who are out of work, back to work."

The proposed tax will be put to a vote, Robertson and others believe the tax will have trouble getting passed.

Copyright 2016 KWES. All rights reserved.

Powered by Frankly