The Reagan Administration is considering tax incentives to boost oil output and restore 100000 jobs U.S. Energy Secretary John Herrington said. A tax credit for new exploration would be part of a package to bring 1000 idle drilling rigs back into operation and raise domestic production by one mln barrels a day he said. The tax status of exploration might also be changed Herrington told reporters at the World Petroleum Congress. He said the oil industry was experiencing difficult times internationally and had been devastated in the United States. Consumer demand and a significant decline in domestic production has resulted in a rise in oil imports of one mln barrels a day in over the last 16 months Herrington said. Steps must be taken...To reverse the downturn in our domestic energy industry and to safeguard and increase our energy security he said. The administration is committed to improving marketplace conditions and incentives to spur exploration and development. This commitment includes rejecting quick fix solutions like an oil import fee which are bad for the United States and bad for the world he added.
U.S. CONSIDERING OIL INDUSTRY TAX INCENTIVES