Natural gas, oil revenue benefits examined
A recently released Department of the Interior report maintains revenues generated from energy development on federal lands have yielded economic and conservation benefits to communities nationwide.
The Department’s Office of Natural Resources Revenue (ONRR) said revenue increased by $2.76 billion over fiscal year 2018, totaling $11.69 billion. The funds are disbursed among states where the energy was produced, as well as for the Treasury and Native American Tribes and mineral owners. Nationwide programs such as the Land and Water Conservation Fund (LWCF) are also beneficiaries of the effort, according to the analysis.
“Responsible natural gas and oil development continues to bring incredible economic and conservation benefits to communities across the nation,” Stephanie Meadows, American Petroleum Institute (API) manager of Upstream and Industry Operations, said. “We are proud that the development of natural gas and oil, both onshore and offshore, allows the United States to reinvest back into important areas such as education, infrastructure, and conservation.”
The report determined in FY2019 the ONRR distributed over $2.44 billion among 35 states where energy production on offshore and onshore federal leases takes place, and the agency has shared more than $314.7 billion in mineral leasing revenues over the past four decades. Revenues collected last year increased by 31 percent over the prior year.
“It is especially exciting to see new benefits of production happening in New Mexico, who received the highest disbursement this year, where the Governor recently announced a plan to use natural gas and oil revenues to fund a program of free tuition at public universities for all residents, regardless of income, potentially benefiting an estimated 55,000 students,” Meadows said.
