Fuel Fix » Report: Oil exports and higher royalties should go together

WASHINGTON — The Obama administration would shortchange taxpayers if it heeds the oil industry’s calls to lift a 39-year-ban on exporting U.S. crude without first hiking the royalty rate companies pay the government for drilling on federal lands, according to a new report.

Energy companies now pay the government 12.5 percent in royalties for oil and gas produced on federal lands — one of the lowest rates charged in oil-producing nations worldwide, says the white paper set to be released Monday by the Western Values Project.

Canada collects 45 percent of the value of oil and gas production on its federal land, and Venezuela takes in 33.3 percent. U.S. states also charge far more; for instance, the Texas government charges 25 percent for oil and gas production on its land. Colorado, Montana, Utah, Wyoming and other states charge 16.67 to 18.75 percent.

via Fuel Fix » Report: Oil exports and higher royalties should go together.

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