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

authordefault
on

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.

 

Related Posts

on

The conference featuring Nigel Farage and Suella Braverman descended into chaos as police were called.

The conference featuring Nigel Farage and Suella Braverman descended into chaos as police were called.
on

Activists aim to make it “politically toxic” for elected representatives to associate with coal, oil and gas companies.

Activists aim to make it “politically toxic” for elected representatives to associate with coal, oil and gas companies.
on

Parliamentary candidate Noel Matthews, who has sacked candidates accused of supporting far-right figures, previously defended the EDL founder.

Parliamentary candidate Noel Matthews, who has sacked candidates accused of supporting far-right figures, previously defended the EDL founder.
on

Lord Agnew is a shareholder in Equinor, the Norwegian oil and gas firm behind the ‘carbon bomb’ Rosebank oil field.

Lord Agnew is a shareholder in Equinor, the Norwegian oil and gas firm behind the ‘carbon bomb’ Rosebank oil field.