Download America*s Oil and Gas Industry: Paying Their Share

America’s Oil and Gas Industry: Paying Their Share
America’s oil and natural gas industry supports 9.2 million jobs throughout the economy and 7.5 percent of our GDP.
Our industry provides higher-than-average wages and helps ensure our nation’s energy security. In the process, the
industry generates tax revenues from operations and sales of products that contribute billions every year to federal,
state and local governments.
Major energy producers pay at least their fair share and are a tremendous source of public revenue.
Income Taxes
 $1 Trillion
Total income taxes paid or incurred by major energy producers from 1980 through 2009.1

$376 Billion
Total income taxes paid or incurred for the five years from 2005 to 2009 with over $110
billion paid to U.S. taxing authorities.1

$35.7 Billion
Income taxes paid or incurred in 2009 alone by major energy producers. 1

41.1 percent
U.S. oil and gas industry’s 2010 income tax expenses as a share of net income.

26.5 percent
All non-oil and gas S&P Industrials income tax expenses for 2010.
Non-Income and Excise Taxes
 $362 Billion
Excise taxes paid on petroleum products to U.S. taxing authorities by the oil and
natural gas industry from 2005-2009.2

$68 Billion
Other non-income taxes paid to U.S taxing authorities from 2005-2009,
not including excise taxes collected and remitted on petroleum products.3
Rents, Royalties, and Fees
 $30 Billion
Land use fees paid to the U.S. government between 2008 and 2010, over $5
billion more than the 2009 budgeted discretionary spending for the Department of Energy. 4

$187 Billion
From 1982 through 2010, the United States government collected rent,
royalty, and bonus payments from the oil and gas industry totaling more than $187 billion,
with almost $96 billion having been received or accrued since 2001.5
So what does this all mean? America’s oil and natural gas industry pays over $86 million every day in rents,
royalties, bonuses and income tax payments to the federal government. Calls to increase taxes on oil and natural gas
companies would undermine revenues returned to the federal government.
Using two econometric models, a Wood Mackenzie study finds that from 2011 to 2025, increased access to resources
generates $150 billion in additional government revenue; compared to increased taxes which decrease net revenues
by $128 billion.
1
http://tonto.eia.doe.gov/cfapps/frs/excel.cfm?tableNumber=12&startYear=1977&endYear=2009
http://www.fhwa.dot.gov/policy/ohpi/hss/hsspubs.cfm (data compiled by API using schedule MF-1; http://www.irs.gov/pub/irs-soi/histab20.xls)
3 http://tonto.eia.doe.gov/cfapps/frs/excel.cfm?tableNumber=13&startYear=1977&endYear=2009
4
http://www.gpoaccess.gov/usbudget/fy09/pdf/budget/tables.pdf
5 http://www.onrr.gov/ONRRWebStats/Home.aspx
2
API – February 2012