Taxes

The oil and gas industry pay huge sums in taxes, and are a tremendous source of public revenue.  

Now, some in Congress want to raise taxes on American oil and natural gas, despite the fact that they already have an effective tax rate of 41.1%.  And that’s compared to an average of 26.5% for all other S&P Industrial companies.[i] 

In addition to taxes, the U.S. oil and natural gas industry pays the federal government significant rents, royalties, and lease payments for production access—totaling more than $100 billion since 2000.  U.S. oil and natural gas companies pay more than $86 million dollars to the federal government in both income taxes and production fees every single day—about $31 billion a year.[ii]

What You Can Do To Lower Gas Prices

Americans can’t control overseas crude oil production.  But, with the right government policies, we can work to fully develop our nation’s own ample oil and natural gas resources and increase our energy security. 

More U.S. oil and natural gas development would:

• Create hundreds of thousands of new jobs,
• Generate billions of dollars in additional government revenues,
• Help lower costs for consumers and businesses.

Greater oil production increases supply, which pushes crude oil prices lower, which has a positive impact on the economy.  And not just for gasoline—diesel, aviation fuel, and other crude oil products will be cheaper, and so will the thousands of consumer products that depend on petroleum products for some or all of their components.