Abstract

Abstract Congress and the Administration are considering Federal tax incentives to improve the economics of marginal oil and gas wells. The effectiveness of these incentives will depend on the specific provisions of the incentive, primarily whether they can be used by the large percentage of marginal well operators in AMT or without taxable income. Comprehensive assessment of Federal marginal well incentives requires a methodology that accounts for the diversity of marginal production operations. This paper presents a marginal well database, model, and methodology designed specifically to assess the costs and benefits of Federal tax incentives for marginal wells. Selected results are presented, along with general conclusions about Federal marginal well tax incentives based on numerous analyses.

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