The impact of The Tax Reform Act of 1986 on the ability of the integrated oil producer and the independent oil producer to generate cash from internal sources is investigated. How did the oil industry fair in the most recent tax reform battle. Obviously, the impact of the new tax law will vary from company to company depending on the specific tax situation of the company. The changes affecting the oil industry appear at first glance to be relatively minor. However, changes in the alternative minimum tax calculations are significant and could add to the tax burden in some years. Each year tax reform manages to chip away at some of the preferential treatment that the oil industry receives for certain capital expenditures. The 1986 Tax Reform Act is not an exception. However, the oil industy probably would have been "hit" harder had it not been for the current weak economic condition of the industry.

You can access this article if you purchase or spend a download.