The Oil Industry Has Been Quietly Cashing In on the CARES Act

The recently passed stimulus bill, known as the CARES Act, included several provisions to provide funding to struggling businesses during the COVID-19 outbreak. One of the lesser-known opportunities made it easier for companies to deduct net operating losses and claim an immediate tax refund.

Among the many beneficiaries of this provision has been the oil industry . According to a report by Bloomberg , at least 37 oil-related companies have claimed more than $1.9 billion in CARES Act tax benefits. While many in the industry are using this cash to help prop up their struggling businesses, at least one offshore drilling contractor Diamond Offshore Drilling (NYSE: DO), apparently used the funds to pay executive bonuses after filing for bankruptcy protection .

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