Energy Giants Have Risks Too?
It is a volatile climate in the energy industry right now. With the possibility of a shift towards natural gas, no one really knows what is to come. Not only are investors at risk of losing their money, but big oil and natural gas companies are also faced with a number of risks. Lori Ann LaRocco conducted an interview with Charles Dewhurst of DBO USA, LLP, and got a number of great answers regarding this issue.
"LL: Let’s break down the threats. How are they hedging the ongoing regulatory battles?
CD: The industry has done a good job of making its case that the inherent risks of searching for and drilling for oil warrant the special tax incentives that the industry receives. They have also been successful in highlighting that much of the oil and gas exploration is done by smaller entrepreneurial companies that need the tax incentives to fund the exploration. Carrying the banner on these messages has fallen largely to the American Petroleum Institute, the principal industry group. But the industry is also quite well connected with Senators and Representatives in Washington."
Read the entire interview here: http://www.cnbc.com/id/43140729?__source=yahoo|headline|quote|text|&par=yahoo