Sentence examples for drilling expenses from inspiring English sources
Drilling unexpectedly into an abnormally pressured formation (AHFP) can result in costly drilling expenses.
And oil and gas companies insist the industry's health depends on the deduction for drilling expenses.
In particular, investors were uncomfortable with the potential conflicts posed by his vast borrowing from investment firms that did business with Chesapeake — an amount the company disclosed at $846 million — to finance his share of drilling expenses.
The tax breaks — fast write-offs for drilling expenses, generous depletion allowances, and the like — may have been useful years ago but are wholly unnecessary when oil prices and industry profits are reaching new highs.
That measure, expected to raise $40 billion over 10 years, would also reduce the generous write-offs for drilling expenses and the tax credit for royalties paid to foreign governments.
Daily crude imports were nearly eight million barrels a day before the Iraqi invasion on Aug. 2. The oil industry wants Congress to back new tax credits that would reduce drilling expenses in the United States.
The credit allows companies to immediately deduct drilling related expenses, like labor and repairs, before any resources are even extracted from the ground.
That, the Treasury Department argues, has encouraged overinvestment in oil and gas drilling at the expense of other parts of the economy.
The first part (i.e., the drilling cost) is the expenses incurred related to the drilling of a horizontal well and the second part is the expenses related to the steps taken to prepare a well for production.
The company also will have $1.5 million in additional exploration expenses after drilling failed at two locations.
After reading the article, make sure that students understand that petroleum deposits are actually more likely to be found offshore than under desert lands, but oil companies prefer to drill on barren desert land because of the much lower expenses incurred by drilling on land than under water.
