Bill Overview
Title: Ending Taxpayer Welfare for Oil and Gas Companies Act of 2021
Description: This bill addresses royalties related to the development of federal energy resources. Among other requirements, the bill increases the onshore royalty rates for new oil, gas, and coal leases; increases onshore rental rates for oil and gas leasing; modifies the current onshore oil and gas minimum bid from $2 to $10 and requires it to be adjusted every four years for inflation; and increases inspection fees and penalties on oil and gas operators.
Sponsors: Rep. Porter, Katie [D-CA-45]
Target Audience
Population: General global population affected by energy market changes
Estimated Size: 331000000
- The bill will increase costs for oil and gas companies due to higher royalty rates, rental rates, and inspection fees, thereby impacting their profitability.
- Consumers might experience changes in oil and gas prices as companies may pass increased costs onto consumers, affecting their economic wellbeing.
- Workers in the oil and gas industry might face employment shifts if companies adjust their workforce in response to increased costs.
- Environmental groups might be impacted positively as these changes could potentially lead to more environmentally responsible practices.
Reasoning
- The policy changes proposed would increase costs for oil and gas companies, leading to potential adjustments in their operations that could impact employment and prices in the industry.
- Consumers may see an increase in energy prices if companies pass on the higher operational costs, affecting household budgets and potentially reducing overall wellbeing, particularly for those with lower incomes or higher energy needs.
- Environmental advocacy groups may welcome these changes as they might lead to a decreased incentive for fossil fuel extraction and more investment in cleaner energy alternatives.
- Employment in the oil and gas sector might face instability, with layoffs possible if companies try to maintain profits by reducing their workforce.
- Communities dependent on oil and gas jobs could see a socioeconomic impact; however, those advocating for greener practices might perceive this policy positively.
- The broader economic implications could vary, with potential short-term instability leading to long-term environmental benefits if this policy successfully reduces fossil fuel dependency.
Simulated Interviews
Oil Rig Operator (Houston, Texas)
Age: 45 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 4/20
Statement of Opinion:
- I'm worried about job security if costs go up for my company.
- We could see more layoffs, which would impact my family's financial stability.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 6 |
| Year 2 | 4 | 6 |
| Year 3 | 4 | 6 |
| Year 5 | 3 | 6 |
| Year 10 | 2 | 5 |
| Year 20 | 2 | 5 |
Environmental Activist (Los Angeles, California)
Age: 30 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 20.0 years
Commonness: 8/20
Statement of Opinion:
- This policy is a step in the right direction for reducing fossil fuel dependency.
- We need more incentives like this to push for cleaner energy solutions.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 9 | 7 |
| Year 10 | 9 | 8 |
| Year 20 | 9 | 8 |
Small Business Owner (Bismarck, North Dakota)
Age: 50 | Gender: other
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 6/20
Statement of Opinion:
- If oil prices go up, so does my cost. This could hurt my sales.
- I hope there is government support for small businesses like mine if this policy passes.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 4 | 5 |
| Year 2 | 4 | 5 |
| Year 3 | 4 | 5 |
| Year 5 | 3 | 5 |
| Year 10 | 3 | 5 |
| Year 20 | 3 | 5 |
Middle School Teacher (New York, New York)
Age: 39 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 15/20
Statement of Opinion:
- Energy prices might spike, which would strain my already tight budget.
- It's crucial that changes also support clean alternatives to benefit future generations.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 6 |
| Year 2 | 5 | 6 |
| Year 3 | 5 | 6 |
| Year 5 | 4 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 6 |
Software Developer (San Francisco, California)
Age: 28 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 20.0 years
Commonness: 10/20
Statement of Opinion:
- I support any move towards reducing fossil fuels—even if I have to pay a bit more initially.
- This policy could hasten the shift towards cleaner energy sources, which is necessary.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 9 | 8 |
| Year 10 | 9 | 8 |
| Year 20 | 9 | 8 |
Retired (Marietta, Ohio)
Age: 62 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 14/20
Statement of Opinion:
- I'm worried about my heating costs going up. Every dollar counts when you're on a fixed income.
- I hope there's some assistance if prices rise too high because of this policy.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 6 |
| Year 2 | 4 | 6 |
| Year 3 | 4 | 6 |
| Year 5 | 3 | 6 |
| Year 10 | 3 | 6 |
| Year 20 | 3 | 6 |
Oilfield Service Technician (Oklahoma City, Oklahoma)
Age: 23 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 15.0 years
Commonness: 5/20
Statement of Opinion:
- Job security is a big concern if costs go up for the oil companies employing me.
- I hope the policy comes with retraining programs for sectors in decline.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 7 |
| Year 2 | 6 | 7 |
| Year 3 | 5 | 7 |
| Year 5 | 5 | 7 |
| Year 10 | 4 | 7 |
| Year 20 | 3 | 6 |
Stay-at-home Parent (Rural Pennsylvania)
Age: 41 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 7/20
Statement of Opinion:
- I'm anxious about potential layoffs impacting our family income.
- Hope there are alternative opportunities if this policy shifts the job market.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 4 | 5 |
| Year 2 | 3 | 5 |
| Year 3 | 3 | 5 |
| Year 5 | 2 | 5 |
| Year 10 | 2 | 5 |
| Year 20 | 2 | 5 |
Renewable Energy Consultant (Denver, Colorado)
Age: 52 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 20.0 years
Commonness: 9/20
Statement of Opinion:
- This policy is great as it can boost interest and investment in renewables.
- Higher fossil fuel costs make our services more attractive to businesses.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 9 | 8 |
| Year 2 | 9 | 8 |
| Year 3 | 9 | 8 |
| Year 5 | 9 | 8 |
| Year 10 | 10 | 9 |
| Year 20 | 10 | 9 |
Finance Analyst (Chicago, Illinois)
Age: 36 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 12/20
Statement of Opinion:
- Uncertain policies can lead to market volatility, impacting my portfolio.
- Need for clear guidelines to manage energy sector investments effectively.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 6 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
Cost Estimates
Year 1: $10000000 (Low: $5000000, High: $15000000)
Year 2: $7000000 (Low: $3000000, High: $12000000)
Year 3: $5000000 (Low: $2000000, High: $8000000)
Year 5: $3000000 (Low: $1000000, High: $5000000)
Year 10: $2000000 (Low: $1000000, High: $3000000)
Year 100: $500000 (Low: $100000, High: $1000000)
Key Considerations
- The immediate costs will primarily involve administrative and enforcement expenditures as a result of implementing new policy requirements.
- Future adjustments in the energy market may affect employment and prices, influencing broader economic conditions.
- Environmental implications could sway public opinion and align with climate change goals, affecting company operations.