AMERICA’S ENERGY FORUM Bringing experts and verifiable facts to the energy discussion

Local Revenue

If the Administration put pro-production policies as outlined in a Wood Mackenzie study, the oil and natural gas industry could generate more than $800 billion in additional government revenue through lease sales, royalties, production fees and taxes. [$36 billion by 2015 is roughly, the equivalent to the amount sought by those seeking to impose punitive taxes on our industry.]  These revenues would go to fund police, fire, schools, roads, environmental preservation efforts and other services for citizens.

America’s oil and gas industry is already a major contributor to federal, state and local tax coffers and the American economy: 

• Supports more than $1 trillion in annual contributions to the U.S. economy, or 7.5 percent of Gross Domestic Product (GDP);
• Invested $1.66 trillion in U.S. capital projects in the last decade;
• Paid $95.6 billion in 2008 income taxes alone;
• Paid more than $178 billion to the government in rent, royalty and bonus payments from 1982 through 2009;
• Provides the U.S. Treasury, on average, with well over $95 million each day.

Furthermore, if revenue sharing is permitted in some coastal states, these states could begin accruing benefits soon after a lease sale for the development area is held.  For example, states participating in revenue sharing in the Gulf of Mexico, as authorized by Congress, received more than $27 million in the first three years of the program. 

This would be a major benefit during these difficult economic times to fund critical services for the taxpayers of these coastal regions.

Read more:

• U.S. Supply Forecast & Potential Jobs & Economic Impacts (2012 – 2030)

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