{"id":33812,"date":"2018-04-27T08:57:01","date_gmt":"2018-04-27T13:57:01","guid":{"rendered":"http:\/\/olduvai.ca\/?p=33812"},"modified":"2018-04-27T08:57:01","modified_gmt":"2018-04-27T13:57:01","slug":"gop-tax-law-bails-out-fracking-companies-buried-in-debt","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=33812","title":{"rendered":"GOP Tax Law Bails Out Fracking Companies Buried in Debt"},"content":{"rendered":"<h3><a href=\"https:\/\/www.desmogblog.com\/2018\/04\/26\/gop-tax-law-bails-out-fracking-companies-debt-eog-hamm\">GOP Tax Law Bails Out Fracking Companies Buried in Debt<\/a><\/h3>\n<p><a href=\"http:\/\/www.eogresources.com\/\">EOG Resources<\/a> is one of the top companies in the fracking industry, and thanks to the <a href=\"https:\/\/www.washingtonpost.com\/news\/wonk\/wp\/2017\/12\/15\/the-final-gop-tax-bill-is-complete-heres-what-is-in-it\/?utm_term=.629ca7899ba5\">new tax bill passed<\/a>\u00a0by Republicans and President Donald Trump at the end of last year,\u00a0EOG\u00a0had an exceptionally strong year compared to\u00a02016.<\/p>\n<p>In 2017, the company\u00a0reported a net income of $2.6 billion.\u00a0The previous year? A\u00a0<em>loss<\/em> of $1.1 billion. That financial turnaround\u00a0seems very impressive until you realize that <a href=\"http:\/\/investors.eogresources.com\/2018-02-27-EOG-Resources-Reports-Fourth-Quarter-and-Full-Year-2017-Results-and-Announces-2018-Capital-Program?pagetemplate=widgetpopup\">$2.2 billion<\/a>, or about 85 percent,\u00a0of its 2017 income was the result of the new tax law. Without that gift from the GOP and Trump, EOG would have lost approximately $700 million between those two years. Instead they are $1.5 billion ahead of the\u00a0game.<\/p>\n<ul>\n<li><a href=\"https:\/\/www.desmogblog.com\/2018\/04\/24\/octane-surprising-reason-shale-oil-makes-poor-fuel-high-tech-cars-and-trucks\">Low Octane: The Surprising Reason Shale Oil Makes a Poor Fuel for High-Tech Cars and Trucks<\/a><\/li>\n<li><a href=\"https:\/\/www.desmogblog.com\/2018\/04\/19\/west-texas-permian-basin-alpine-high-fracking-apache\">Despite Disappointing Returns, Oil Driller Pushes Ahead with Fracking Near Rare Texas Wildlands<\/a><\/li>\n<li><a href=\"https:\/\/www.desmogblog.com\/2018\/04\/18\/finances-great-american-fracking-bubble\">The Secret of the Great American Fracking Bubble<\/a><\/li>\n<\/ul>\n<p>With numbers like these, it\u00a0is easy to see how the Tax\u00a0Cuts and Jobs\u00a0Act of 2017 was a much-needed lifeline for the <a href=\"https:\/\/www.desmogblog.com\/2018\/04\/18\/finances-great-american-fracking-bubble\">money-losing fracking industry<\/a>. EOG is <a href=\"https:\/\/seekingalpha.com\/article\/4153704-eog-resources-perhaps-good-time-move\">routinely touted<\/a> as one of the best shale oil and gas companies. Yet the company\u00a0still lost $700 million in the past two years. Or\u00a0at least it\u00a0would have\u00a0if not for the tax\u00a0bill.<\/p>\n<p>This is the same company that an analyst at the investment advice website <a href=\"https:\/\/seekingalpha.com\/article\/4153126-coming-fcf-giant-known-eog-resources?page=2\">Seeking Alpha<\/a> says is \u201cgenerally considered one of the best unconventional upstream oil and\u00a0gas players in the business, and its financials back it up.\u201d If those are the best financials in your industry, your industry has\u00a0a big\u00a0problem.<\/p>\n<p>An interesting side note is that EOG stands\u00a0for <a href=\"http:\/\/www.eogresources.com\/about\/company_history.html\">Enron Oil and Gas<\/a>, which was\u00a0spun off as its own company from Enron \u2014 the company notorious for one of the great <a href=\"https:\/\/www.theatlantic.com\/magazine\/archive\/2002\/03\/the-enron-ponzi-scheme\/303156\/\">energy Ponzi schemes<\/a> of the 20th century. Today, an Enron spinoff company is being held up as\u00a0the most fiscally sound in the shale oil\u00a0industry.<\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>GOP Tax Law Bails Out Fracking Companies Buried in Debt EOG Resources is one of the top companies in the fracking industry, and thanks to the new tax bill passed\u00a0by Republicans and President Donald Trump at the end of last year,\u00a0EOG\u00a0had an exceptionally strong year compared to\u00a02016. In 2017, the company\u00a0reported a net income of [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[195,5317,7844,3775,331,11782,783],"class_list":["post-33812","post","type-post","status-publish","format-standard","hentry","category-economics","tag-debt","tag-desmog-blog","tag-donald-trump","tag-eog-resources","tag-fracking","tag-justin-mikulka","tag-taxes"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/33812","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=33812"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/33812\/revisions"}],"predecessor-version":[{"id":33813,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/33812\/revisions\/33813"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=33812"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=33812"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=33812"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}