Oil and Gas - Page 20 of 26 - Taxpayers for Common Sense

Taxpayers subsidize the oil and gas industry through the federal tax code and generous leasing terms. Private companies lease federal land and waters to extract publicly owned oil and gas resources. The Department of the Interior is tasked with ensuring fair compensation through royalties and fees—and making sure companies properly reclaim land after drilling.

Federal policy must secure a fair return from the private development of publicly owned oil and gas resources and protect against long-term environmental and financial liabilities. Leasing decisions should weigh alternative uses of public land—such as hunting, recreation, and renewable energy—and prioritize areas with high development potential. For example, oil and gas leasing in the Arctic National Wildlife Refuge has delivered little revenue while posing serious environmental and financial risks. Mandated lease sales in the region attracted minimal industry interest, and the area’s remoteness and ecological sensitivity increase the potential for taxpayer exposure.