Morning Headlamp — Hendrix discusses oil and gas tax credits

All grit and no progress. Governor Bill Walker’s oil and gas advisor John Hendrix discussed the ongoing tension between the Walker administration and major oil producers with regards to tax credits. Noting that he’s not a regulator, Hendrix said the state needs to have “gritty” conversations with the oil industry about what companies are doing — or not — when it comes to exploration and production. “Tax credits are good if the people out there are drilling for oil,” Hendrix said. But it’s not good when companies “use tax credits to drill for more tax credits. We don’t want that.” The chief executive and president of AOGA, Kara Moriarty, said Hendrix can help the administration understand some of the challenges the industry faces. “We’d hope that type of background would be used and listened to in setting sound policy,” she said.

An Exxon Mobil Corp. official on Tuesday dismissed the growing calls by some nations to sharply curtail the use of fossil fuels, or even ban them altogether, as unfeasible. The Exxon official said the company is concerned about the risks climate change poses, and that it encourages the use of renewable and other alternative fuels. But he said, for example, that even while the use of wind and solar power will rise faster than any other energy source through 2040, those two will still amount to less than 3% of total energy use.

 

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First Reads

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