State Governments Make Billions In Royalties Off Oil Production in 2019

State governments saw over $3 Billion come into their treasury coffers from production of oil and gas on their lands via the federal government. No matter what “environmental rhetoric” state politicians offer up, they secretly smile when the money comes pouring in.

Oil production from federally-managed lands and waters topped a record 1 billion barrels last year, U.S. officials told The Associated Press, as shorter permitting times and technological advances helped drive new development.

The production figure was up more than 13 percent from 2018. It includes oil from onshore and offshore parcels and American Indian-owned lands managed by the U.S. Interior Department during fiscal year 2019, which ended Sept. 30.

Royalties collected by the government on oil production increased to $7.5 billion in 2019, according to Interior officials. That’s up 21 percent compared to 2018.

Roughly half of that money is returned to states where the oil is produced. The rest goes into the U.S. treasury.

Under Trump, the time it takes the Bureau of Land Management to approve drilling applications has been cut from 257 days on average in 2016, to 108 days last year, according to federal officials.

About one-quarter of U.S. oil is produced from federal lands, a share that has slightly dropped since Trump took office.

Source: AP News

Published by Hoosier Econ

Located out of Central Indiana. Blogger of economics, politics and societal trends.

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