Transparency Snapshot
The United States is one of the world's top producers of oil. It is also one of the few countries where sub-soil mineral resources are not considered public property unless they are situated on public lands. As a result, in recent years an average of only one-third of total U.S. oil production has come from on- and offshore lands owned by the federal government. Nonetheless, natural resource revenues from development activities on these lands account for one of the U.S. government’s largest sources of nontax income.
While the U.S. is a long-standing supporter of the Extractive Industries Transparency Initiative (EITI), it took a milestone step in 2011 by announcing it would seek to become an EITI implementing country. The U.S. government collects roughly $10 billion annually in revenues from oil, gas and minerals on federal lands. The management and use of these revenues will involve a more transparent, inclusive process as the U.S. pursues EITI candidacy and compliance.
Extractive Industries
The United States is the third largest oil producer in the world and also produces significant amounts of natural gas and coal. Practically all of these resources are consumed domestically, with the U.S. importing vast amounts of additional crude oil and petroleum products each year to meet demand.
The legal and fiscal regimes governing oil, gas and mineral extraction within the United States are varied. The federal government, state and local governments and private citizens may all own subsoil mineral assets, and each level of U.S. government is authorized to levy its own taxes and, to an extent, apply its own laws and regulations to oil and mining activity. The federal government regulates oil, gas and mining company activities across the country, but, apart from corporate income taxes, receives fiscal benefits only from resources located on federal lands. The U.S. does not own any national oil companies, and relies on a standard leasing process to assign land and rights to thousands of domestic and international operators.
