My former colleague at the National Taxpayers Union, Andrew Moylan, had an excellent op-ed in the Wall Street Journal recently which discussed yet another often-overlooked reason to open new areas to domestic drilling: a gusher of tax revenues.
As has been made abundantly clear in New Mexico during this special session, this state relies heavily on oil and gas revenues for tax revenues. We’re not alone. The federal government also collects billions of dollars annually from oil and gas and, as Moylan points out:
The potential federal revenue from Arctic National Wildlife Refuge (ANWR) oil development is $191 billion over 30 years — roughly $18.36 per barrel, based on projections of recoverable reserves. Applying that formula to the 107 billion-plus barrels of recoverable oil that federal agencies estimate is in ANWR, the nearby National Petroleum Reserve and offshore tells us that sensible drilling could yield nearly $2 trillion in overall revenue over 30 years, or an average of about $65.5 billion per year.
Additional domestic oil and gas drilling is already a “win, win.” As Moylan concludes, “More supply, lower gas prices, greater energy security, and lower taxes. What are we waiting for?”