Oil Taxes

The tax dollars from the oil and gas industry fund vast portions of the economy, from schools to public safety. In the last 20 years, over $3 trillion of the industry's capital has been invested to meet the growing demand for energy. The energy industry’s tax rate averages 38.7 percent, compared to other sectors’ 28.2 percent. Combined with rents, royalties, and lease payments, the industry has contributed more than $119 billion to the economy since 2000. Industry earnings remain comparable to other major U.S. manufacturing industries, with earnings averaging 3.9 cents for every dollar.

Many companies take advantage of tax provisions in the form of “oil and gas subsidies”, which are actually cost-recovery mechanisms, allowing the oil and natural gas industry to deduct its costs in the same way that most other sectors do, including biotech, pharmaceutical, computers, and software.