In addition, depreciation deductions track historical cost rather than rapidly rising replacementcosts, adding to short-term profit during inflationary times.
This rapid turnover creates rapid replacementcosts and raises questions about how to decommission and dispose of old hardware, which can also cost money.
His bigger concerns are utilities, which could suffer from required replacementcosts in some areas, and exploration companies like Apache, which had to shut down production in the Gulf.