Denver, CO – Following increased debate on ending the crude oil export ban, Western Values Project released a new report making the case that an increase in the onshore royalty rate should accompany any repeal of the crude oil export ban.
“For too long oil and gas companies have gotten rich off of paying below fair market value to develop American resources. Westerners are the losers in that equation,” said Ross Lane, director of Western Values Project. “If Big Oil reaps the benefits of selling American energy overseas, taxpayers should get their fair share—and Washington needs to fight for that.”
The relatively recent boom in oil and gas development has reignited the debate around exporting crude oil. Proponents of the repeal argue the ban reduces the incentive for companies to drill, while opponents argue the repeal would hurt American jobs and increase fuel prices for consumers.
The new report from Western Values Project outlines positive steps the Department of Interior and the Obama administration can take to better ensure a greater return for the American taxpayer while Washington considers a possible repeal of the crude oil export ban.
The onshore royalty rate in the U.S. is 12.5 percent. When the rate goes head-to-head with those in other countries, it comes up short. What return do other countries receive for their resources?
Canada: (up to 45 percent)
New Zealand: (up to 20 percent)
Ecuador: (18.5 percent)
Venezuela (up to 33.3 percent)
Colombia (up to 25 percent)
Nigeria, Algeria and Russia onshore (up to 20 percent)
In protest of the U.S.’ Middle East foreign policy position during the Yom Kippur War, Arab members of OPEC cut production and stopped oil shipments to the U.S. in 1973. The immediate scarcity of the resource threw developed and developing nations alike into chaos. In response, Congress passed a series of bills effectively curtailing the export of crude oil.
Read the Report: Refining the Energy Debate