Fair Share of Taxes

In Brief In Brief

America’s Oil and Natural 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, they generate tax revenues from operations and sales of products that contribute billions every year to federal, state and local governments. Contrary to what some political pundits may say, U.S. oil and gas companies pay their fair share and are a tremendous source of public revenue. Did You Know? • •
• From 1980 through 2008, U.S.-based major energy producers paid or accrued more than one trillion dollars in total income taxes. From 2004 to 2008, U.S.-based oil and natural gas companies paid or accrued more than $300 billion in total income taxes with almost half being paid to U.S. taxing authorities. In 2008 alone, major energy producers paid or incurred over $95 billion in income taxes, with over $23 billion paid to taxing authorities within the United States. More than $20 billion was paid or incurred purely for federal income tax liability, nearly twice 2008 budgeted discretionary spending for the Department of Interior (DOI). During the five-year period from 2004-2008, major energy producers paid or incurred over $60 billion in non-income taxes to U.S. taxing authorities. From 1982 to 2009, the United States government collected rent, royalty, and bonus payments from the oil and gas industry totaling more than $178 billion, with over $88 billion having been received or accrued since 2001. In 2008 and 2009 alone, the oil and gas industry paid land use fees to the U.S. government which totaled more than $30 billion, over $5 billion more than the 2009 budgeted discretionary spending for the Department of Energy (DOE). During the five-year period from 2004-2008, over $350 billion in excise taxes on petroleum products was collected and remitted to U.S. taxing authorities by the oil and natural gas industry.

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January 2011

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