For all the debate around Trump’s tax reforms, one area of business is shouting their praises from the rooftops: oil and gas. Royal Dutch Shell, one of the world’s largest oil conglomerates, released a statement recently, stating that Trump’s tax reforms would significantly improve their bottom line. Much of these improvements come from tax cuts; Trump’s reform takes the corporate income tax down from 35 percent to just 21 percent. For businesses like oil and gas, that can equal a difference in the millions at year-end.
• Shell did admit that, while they will largely benefit from the changes, they will lose approximately $2 billion to $2.5 billion in this year’s third quarter as a re-measurement of its deferred tax position.
• The changes come at a beneficial time for Shell, who has been in a slump on home soil for the last few years. The company reports that they are finally restoring cash dividends and expect additional growth in the coming years.
• Lowered oil barrel prices were a significant cause for Shell’s struggles. Those numbers are beginning to rebound from a low of $27 per barrel to nearly $60 a barrel.
• Signs of Shell’s success and growth are occurring not just on home soil, but also across the pond. The fuel giant successfully bought out and took over England’s First Utility company, an organization providing power to nearly 900,000 homes.
• Shell plans to release a full outline of just how much it benefits at the close of the year (Feb 1). It may be impossible to tell just how much oil and gas really benefits until that time, due to fluctuations in the industry.
SPECIAL: Identity Theft Is on the Rise. Protect Yourself with THIS
What other industries do you expect to benefit from the tax plan?