Center for Western Priorities Facebook
Center for Western Priorities Twitter
Center for Western Priorities Videos

GET EMAIL UPDATES

Taxpayers Could Miss Out on $500 Million if Congress Lifts Export Ban Without Updating Royalty Rates

FOR IMMEDIATE RELEASE

SEPTEMBER 10, 2015

DENVER—A new analysis from the Center for Western Priorities finds American taxpayers could lose more than half a billion dollars over the next decade if Congress lifts the ban on exporting crude oil while leaving intact century-old royalty rates on oil and gas extracted from national public lands.

As a House subcommittee prepares to vote on lifting the oil export ban today, CWP is urging lawmakers to update those royalty rates so taxpayers get their fair share from American oil development.Using data from the Energy Information Administration and a report commissioned by the American Petroleum Institute, CWP calculated the difference between expected royalties under the existing antiquated 12.5 percent royalty rate and the 18.75 percent royalty rate that’s currently assessed on oil from offshore leases.

“Using the oil industry’s most conservative estimates for new production if the export ban is lifted, we found that taxpayers will miss out on at least 47 million dollars over the next ten years,” said Policy Director Greg Zimmerman. “If production increases to the oil industry’s high-end estimates, we’re looking at hundreds of millions of dollars at stake, even if oil prices stay low.”

TAXPAYER REVENUE LOST BY LIFTING EXPORT BAN WITHOUT MODERNIZING ONSHORE ROYALTY RATES, ESTIMATED FOR 2016-2025

Oil Exports Scenarios 1

The current oil and gas royalty rates on public lands were set in 1920. The outdated 12.5 percent rate falls well short of the royalty rates on oil extracted from state-owned lands, which range from 16.67 to 25 percent. Last year, oil companies produced nearly 150 million barrels of oil from national public lands—the most production since 2003 and an increase of nearly 50 percent over the last 12 years.

“If our elected officials are serious about being good fiscal stewards for the American people, Congress must use this opportunity to bring royalty rates into the 21st century,” said Executive Director Jennifer Rokala. “In its haste to hand oil companies a major policy victory, Congress risks overlooking a simple and long-overdue fix to guarantee we’re capturing the economic upside of oil drilling.”

The full analysis is available for download at westernpriorities.org. Greg Zimmerman and Jennifer Rokala are available for video and audio interviews. For more information or to schedule an interview, contact Aaron Weiss at 720-279-0019.

Latest News

@WstrnPriorities on Twitter


14 hours ago
Putting Karen Budd-Falen at the head of @BLMNational would send a clear signal to land seizure advocates that @SecretaryZinke is on their side. https://t.co/oeA1rz6pHn
3 days ago
@SecretaryZinke rocked moccasins to celebrate native cultures. But tribes are focused on his plans to rock Bears Ears, via @bydarrylfears @eilperin
https://t.co/hJJcLWTvTZ https://t.co/MpgFr6aVpE
WstrnPriorities photo

FROM THE BLOG


House committee chairman attacks reporter for doing his job

Utah Congressman Rob Bishop, chairman of the House Natural Resources Committee, has made no secrets about his disdain for America’s...

November 10th, 2017

Trying to shrink Bears Ears, Trump makes it clear whose heritage he cares about

Senator Orrin Hatch (R-UT) said Friday that President Trump had called him to announce his intent to dramatically shrink Bears...

October 27th, 2017

The Zinke Doctrine: Make public lands hard for the public to use, easy for industry to abuse

More than six months into Secretary Ryan Zinke’s tenure at the Interior Department, we’re getting a clear picture of what...

October 27th, 2017