Energy Tomorrow Blog
Posted September 2, 2021
As the administration looks to foreign nations to boost energy production, the House Natural Resources Committee’s baseline reconciliation bill, as unveiled, proposes a double-whammy of punitive policies to discourage U.S. energy development with new, targeted measures against the U.S. natural gas and oil industry. That combination could lower domestic production and boomerang the U.S. back to 1970s-era dependence upon foreign energy imports.
Most concerning, instead of advancing effective solutions that build on the nation’s progress in reducing emissions, the committee would inundate producers with a myriad of new taxes and fees to create a de facto natural gas and oil development ban on federal lands.
As the full committee works on the proposal, a course correction is urgent as the broader, multi-trillion dollar reconciliation package takes shape. Read on about why the committee’s proposal could harm the environment, weaken the economy and jeopardize America’s national security.
Posted December 9, 2020
Let’s discuss the value of natural gas and oil to all Americans – the fundamental worth of abundant, affordable and reliable energy to modern, daily life, the economy and our nation’s security – which gets lost in two U.S. senators’ proposal to make producing energy on federal lands more costly.
U.S. Sens. Chuck Grassley of Iowa and Tom Udall of New Mexico want to increase the royalty rate for production on federal lands, which would discourage that critical production. We’ll get to that point down below. First, let’s zero in on the issue of fundamental value.
In a New York Times op-ed, Grassley and Udall call the American public “the big loser” under the current royalty arrangement. In doing so, the senators are so preoccupied with percentages they inadvertently make an afterthought of what current natural gas and oil production on federal lands means for U.S. economic growth, global leadership, strengthened security at home and significant environmental progress.
Posted October 28, 2019
America’s natural gas and oil industry continues to work for Americans – with revenues from production on federal and Native American-owned lands and offshore areas driving $11.69 billion in federal disbursements back to the states, counties, tribes and reclamation and conservation programs. That’s $2.76 billion more than the previous fiscal year and nearly double the disbursements in FY2016, the Interior Department said.
Recipients included: $2.44 billion to states and counties, $1.76 billion to the reclamation fund, $1.14 billion to Native American tribes and individual mineral owners, $1 billion to the Land and Water Conservation Fund and $4.9 billion to the U.S. treasury.
Posted August 31, 2017
President Trump’s call for tax reform this week, kicking off the administration’s push for pro-growth measures to spur investment, create jobs and raise earnings is one we can certainly understand. The president said:
“We need a competitive tax code that creates more jobs and higher wages for Americans. It’s time to give American workers the pay raise that they've been looking for, for many, many years. … If we do this, if we unite in the name of common sense and the name of common good, then we will add millions and millions of new jobs, bring back trillions of dollars, and we will give America the competitive advantage that it so desperately needs and has been looking for for so long. It’s time.”
No argument here. The natural gas and oil industry is about economic growth: investing, creating jobs and boosting worker pay for years – on the way to supporting 10.3 million jobs while adding $1.3 trillion to the national economy and aiding growth across all 50 states.
Posted August 17, 2015
Our series highlighting the economic and jobs impact of energy in each of the 50 states continues today with Hawaii. We started the series with Virginia on June 29 and continued with Montana, Iowa, Alabama, Arizona and Nebraska last week. All information covered in this series can be found online here, arranged on an interactive map of the United States. State-specific information across the country will be populated on this map as the series continues.
As we can see with Hawaii, the energy impacts of the states individually combine to form energy’s national economic and jobs picture: 9.8 million jobs supported and $1.2 trillion in value added.
Posted August 25, 2014
Because she relies so much on her lease checks from Greka Energy, she's concerned about Measure P and how it could affect her income. The voter-driven initiative to ban oil extraction methods of hydraulic fracturing, better known as fracking, cyclic steaming and well acidization in Santa Barbara County is on the November ballot.
Posted October 17, 2013
With the ongoing budget debate in Washington serving as backdrop, let’s review ways America’s oil and natural gas industry generates revenue for our government – and the smart path to increasing that contribution in coming years.
First, our industry currently supplies $85 million a day in revenue to the U.S. Treasury via income taxes, royalties, rents and other fees. Second, industry is paying its fair share and more with an effective tax rate of 44.6 percent averaged over 2007-2012 – compared to 37.7 percent for retail, 25.6 percent for computer and peripherals and 21.3 percent for pharmaceuticals. And it could deliver more through increased domestic production made possible by greater access to U.S. reserves.
Posted September 11, 2013
Posted July 22, 2013
According to new data from the Texas Railroad Commission, the nine fields that make up the Eagle Ford Shale play yielded nearly 582,000 barrels of crude oil a day in May, compared to nearly 369,000 barrels daily in 2012.
Thanks to impact fees from hydraulic fracturing in the Marcellus Shale region, Williamsport, Pa. can now invest more than $1 million to repair the city’s roadways, a city official says. "We're doubling the amount of investment because of Marcellus Shale impact fees," said John Grado, city engineer and director of community and economic development.
Posted June 14, 2013
The energy stimulus from shale development last year in Pennsylvania is big – big as in approaching a number with nine zeroes:
- $202.4 million collected in state impact fees from energy producers.
- $731 million in rents and royalties paid to land and mineral rights owners.
That’s nearly $1 billion from the oil and natural gas industry in terms of tax revenues for government to allocate (more below) and payments to individuals.
Pennsylvania officials announced this week $202,472,000 was collected in producer-paid impact fees in 2012. About $204 million was collected for 2011, bringing the two-year total to more than $406.6 million, state officials said. Public Utility Commission Chairman Robert F. Powelson:
“The PUC is entrusted by the Governor and the legislature with the collection and distribution of the Impact Fee monies. Again, we have met all of the deadlines in the legislation, which contains a complex and specific formula for getting this money into the hands of local communities.”