WASHINGTON, DC – Today, Accountable.US released the following statement and analysis in response to the probable next Speaker of the House’s recently released oversight plan. It signals that the next House majority will use their oversight powers to undermine President Biden’s long-overdue reform of how much oil companies pay in royalties to drill federal lands.
The likely incoming Speaker and his gerrymandered majority plan to use our tax dollars to do the dirty work of their Big Oil donors rather than ensuring a fair share for taxpayers. While Congressman McCarthy is intent on delivering for wealthy industry executives, western state communities like his own district will suffer.”
Jordan Schreiber, Director of Energy and Environment at Accountable.US
President Biden recently set royalty rates at 18.75%, bringing them into line with those set by state governments. Big Oil previously struck a sweetheart deal with the Department of Interior that included an obscenely low royalty rate of 12.5% for companies producing commodities on public land.
- In fiscal year 2022, western states saw a 115% increase in revenue from oil and gas production, largely due to the increased rate.
- In the past, McCarthy has praised the leasing program for bringing “Royalty-Based Revenue” To Bakersfield, McCarthy’s district.
- In 2019, the artificially low rates cost them over $1 billion in potential revenue.
- This year alone, the largest oil companies in the country made $343 billion in profit.