Tax change could tilt playing field for U.S. E&Ps

摘要

U.S. oil and gas companies will not be able to successfully com- pete against their foreign counterparts on many international energy development projects if longstanding rales on taxing foreign income are changed, according to a newly released study by Wood Mackenzie. Legislative proposals put forth by the Obama administration would significantly alter how foreign tax payments on foreign income by U.S.-based companies would be treated for U.S. income tax purposes—essentially subjecting them to double taxation on foreign operations, according to the study. As a result, U.S. companies would face potentially lower returns investing in foreign oil and gas projects, would bid on fewer projects, and successfully bid less often.