STATEMENT: Americans Should Come First When Exporting Natural Gas
Denver, CO — Today, both the U.S. House and Senate will hold hearings discussing the future of liquified natural gas (LNG) exports. In response, Western Values Project released the following statement from Director Ross Lane urging Congress to think of Americans first when considering the future of the natural gas market.
“While politicians keep looking for ways to let industry ship our energy overseas, who guarantees American consumers don’t get taken to the cleaners in the form of higher prices — and who ensures our quality of life and economy aren’t negatively impacted?” said Western Values Project Director Ross Lane. “American consumers could face significant consequences as a result of rapidly changing the natural gas market, while continuing to be shortchanged for the resources extracted from public lands. It’s highway robbery.”
Earlier this month, Western Values Project released a report urging Congress to raise the onshore royalty rate as part of discussions around lifting the crude oil export ban.
Specifically, the report noted that:
- Energy companies now pay the government 12.5 percent in royalties for oil and gas produced on federal lands — one of the lowest rates charged in oil-producing nations worldwide (FuelFix)
- Canada collects 45 percent of the value of oil and gas production on its federal land, and Venezuela takes in 33.3 percent. U.S. states also charge far more; for instance, Texas charges 25 percent for oil and gas production on its land. Colorado, Montana, Utah, Wyoming and other states charge 16.67 to 18.75 percent. (FuelFix)
- Expanding the market without raising royalty rates would mean leaving millions of dollars in lost state and federal revenue on the table.