Extraction site

The United States has supported the development of its oil and gas industry since the early twentieth century. Despite repeated pledges to phase out 'inefficient' fossil fuel subsidies, US oil and gas production continues to be subsidized by billions of dollars each year. In this study, we quantify how 16 subsidies and regulatory exemptions individually and altogether affect the economics of US oil and gas production in 2020–2030 under different price and financial risk outlooks.

This analysis looks at the last two decades of investment data for US oil and gas fields to evaluate how major federal subsidies may have played a role in the huge boom in US oil and gas production. It finds that federal subsidies amplified the expected financial returns of investing in unconventional oil and gas development, thereby helping to spur and sustain the US shale boom over the last two decades.

Federal law requires coal companies to reclaim and restore land and water resources that have been degraded by mining. But at many sites, reclamation occurs slowly, if it all. Mining companies are required to post performance bonds to ensure the successful completion of reclamation efforts should they become insolvent, but regulators have discretion to accept “self-bonds,” which allow many companies to operate without posting any surety or collateral.

The US coal industry faces not just overcapacity but crippling liabilities that will outlive mine closures. Setting the industry on a viable course will require all stakeholders to step up with new ideas.

This report aims to illuminate some of the hidden costs of coal production, which Interior should account for in order to modernize the federal coal program and earn a more fair return. If Interior had used a higher royalty rate that accounts for even a fraction of the public costs of mining, it could have earned an additional $2 billion from 2009 to 2013, from coal production in four western states-Wyoming, Colorado, Montana, and Utah.

To modernize the coal program and earn a more fair return, Interior should:

This report identifies billions of dollars in subsidies for fossil fuel exploration from the world's wealthiest countries. This government support for expanding oil, gas, and coal reserves continues despite a 2009 commitment by G20 countries to phase out inefficient fossil fuel subsidies, a pledge that has been repeatedly reiterated since then, including by G7 leaders in their June 2014 declaration.

The pace and scale of oil sands mining continues to increase in Alberta despite a poor understanding of the environmental liabilities: costs associated with the environmental impacts throughout the life of a mine. In Toxic Liability, the Pembina Institute has compiled the first public estimate of these liabilities.

Although the oil shale industry is still in its commercial infancy, it has a long history of government support that continues today. The Bureau of Land Management recently issued two new research, development, and demonstration leases and new federal regulations for commercial leases and royalty rates are expected any day. Before the federal government goes down that road it’s important to take a look back and ask whether we should be throwing good money after bad.

Discussion of fiscal regimes for oil extraction have traditionally focused on the total charges of all sorts levied on a project (the "total government take"), and whether their level and structure optimised oil production and public revenues.  Yet national, or global, policies to meet energy and environmental goals need to maximize benefits across complex energy and economic systems, not just specific projects.  This study argues that there is a need to reframe the debate on how fiscal regimes - notably tax and royalties - to fossil-fuel extraction are evaluated.  It further argues that su