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As oil markets collapse, oil industry players and their allies in Congress have asked the Trump administration to reduce or suspend royalty payments companies make for producing publicly-owned oil and gas, money that is then divvied up between state and federal governments. Such a move would deprive states of critically-needed revenue in the economic downturn, while benefitting former clients of Interior Secretary David Bernhardt.
While President Trump is rumored to oppose a blanket suspension of royalties, Secretary Bernhardt, a former oil lobbyist, has promised that he will swiftly reduce royalties for any company that asks for it. One former client in particular stands to benefit—the main trade association representing offshore drillers, the National Ocean Industries Association (NOIA), which cheered the idea in a press release last week.
A new Center for Western Priorities analysis finds companies on NOIA's board of directors paid $3.8 billion in oil and gas royalties in 2018 alone, and $19.4 billion in royalties from 2013-2018. Similarly, companies that met last week with President Trump paid $6 billion in royalties over six years.
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Oil and gas companies have a core responsibility to protect health, safety and the environment. This data shows that operators in the Permian are failing to meet that basic obligation.”
