US Royalties to Big Oil Give a New ($100 Billion) Meaning to "Black Gold"

onMar 30, 2006 @ 08:45 PST

Incentives for oil and gas companies that drill in the Gulf of Mexico will cost the federal government at least $20 billion over the next 25 years, according to the draft of a Congressional report obtained on Tuesday.

The new estimates, prepared by the Government Accountability Office, also warn that $80 billion in revenue could be lost over the same period if oil and gas companies win a new lawsuit that seeks a further reduction in their royalty payments.

The report, delivered in a private briefing late Monday to House and Senate staff members, startled some of the program’s longtime supporters and infuriated some critics.

The report is the first attempt by a government agency to calculate the soaring costs of a 10-year-old program that was created to encourage deepwater drilling when energy prices were low.

By Ross Gelbspan

Analysis

Q&A: Amy Westervelt on the Corporate Poisoning of the Information Aquifer — and How to Undo the Harm

ByMatthew Green

onSep 21, 2026 @ 12:34 PDT

The acclaimed climate accountability journalist says bold steps are needed to reverse the insidious impact of decades of industry propaganda on the public square.

Series: Holding the Advertising and Public Relations Industry Accountable for Greenwash and Climate Misinformation

Series: Advertising & PR Industry

Suncor Helped Lead Climate Denial Group Spreading ‘Uncertainties’

ByGeoff Dembicki

onSep 21, 2026 @ 07:18 PDT

With a U.S. Supreme Court decision looming on whether the company can be held liable for climate deception, internal documents show a campaign to question science.