American natural gas and oil development continues growth as major revenue generator for education and conservation funding nationwide
Published by Laura Dean,
The Department of the Interior’s Office of Natural Resources Revenue (ONRR) reported that revenues generated from energy development on federal lands increased by US$2.76 billion dollars over fiscal year 2018, totalling US$11.69 billion. These revenues are disbursed among states where energy was produced as well as for the US Treasury and Native American Tribes and mineral owners, and nationwide programs such the Land and Water Conservation Fund (LWCF).
“Responsible natural gas and oil development continues to bring incredible economic and conservation benefits to communities across the nation,” said API Manager of Upstream and Industry Operations Stephanie Meadows. “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.
"Royalties and revenues from federal natural gas and oil production fund programs in all 50 states. Everyone, including U.S. territories and the District of Columbia benefit from offshore energy development via grants, through programs such as the LWCF, that support state conservation and outdoor recreation projects – not just energy producing states.
“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 programme of free tuition at public universities for all residents, regardless of income, potentially benefitting an estimated 55 000 students.”
According to the ONRR, in FY2019 over US$2.44 billion was distributed among 35 states where energy production on offshore and onshore federal leases takes place. ONRR has shared more than US$314.7 billion in mineral leasing revenues over the past four decades, and revenues collected last year increased by 31% over the prior year.
US energy leadership has had additional benefits beyond revenues as well, through the increased use of clean natural gas in power generation, US energy-related emissions of carbon dioxide, another important greenhouse gas, have fallen to their lowest levels in a generation. Consumers have benefited in various areas, including with fuel pump prices last year that were nearly a dollar lower than they were in 2012 and other energy savings.
Read the article online at: https://www.oilfieldtechnology.com/special-reports/28102019/american-natural-gas-and-oil-development-continues-growth-as-major-revenue-generator-for-education-and-conservation-funding-nationwide/
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