Budget reconciliation bill includes $6 billion in fines and fees on oil and gas industry

President Joe Biden. (Official White House Photo by Adam Schultz, cropped with background added by County 17)

By Bethany Blankley, The Center Square

About $6 billion in new taxes, fees and fines specific to the oil and gas industry are on the table in President Joe Biden’s $3.5 trillion budget reconciliation plan before Congress.

Four groups representing hundreds of oil and gas businesses have urged Congress to scrap the plan, arguing it will impact supply and increase prices on thousands of oil-based products that will hurt the poor, elderly and tribal groups the most.

In a letter to the House Natural Resources Committee, representatives from Western Energy Alliance, U.S. Oil and Gas Association, International Association of Drilling Contractors, and the Energy Workforce & Technology Council argue that imposing hefty “ill-conceived and punitive fees, royalties, and penalties in an effort to raise just six billion dollars in revenue” will constrain the future supply of 6,000 products derived from oil that Americans use every day.

 

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The Center Square is a 501(c)(3) non-profit focused on state- and local-level government and economic reporting.