Local Revenue

Increased American offshore energy development would add billions in federal, state and local tax revenues.

Here’s how the oil and natural gas industry is already contributing to 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, it is estimated that increased access to U.S. oil and natural gas resources currently off-limits — much of which lie offshore — could generate an additional $36 billion in government revenue by 2015 and nearly $803 billion by 2030 (Source:  Wood Mackenzie: U.S. Supply Forecast & Potential Jobs & Economic Impacts).

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.

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What is a five-year plan? Who is in charge of developing and implementing that? States or Feds?
Posted on December 12, 2013

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