Pardon Our Dust
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On November 3, 2022, Bernard L. McNamee, McGuireWoods partner and McGuireWoods Consulting senior advisor, was quoted in Infrastructure Investor magazine in an article titled “Would a US energy windfall tax be ‘catastrophic’?”
The article looks at President Biden’s threat to impose a “windfall profits tax” on oil companies following the rise in profits for oil companies at the same time as customers are paying more at the pump.
McNamee, a former Commissioner on the Federal Energy Regulatory Commission (FERC), criticized the idea as potentially disastrous for US energy production and for consumers.
“A windfall tax on oil and [natural] gas producers would be catastrophic for the economy, energy production and consumers.”
McNamee noted that among the possible negative repercussions include a decrease in investment in oil necessary for increasing production. “A windfall tax will be yet another disincentive against energy producers to expand their business,” McNamee said.