Massive Foreign Payments Revealed by US Oil Giants
Monday, Sep 30, 2024 7:21 am ET
2min read In a significant disclosure, three of the largest U.S. energy exploration companies have revealed that they paid more than $42 billion to foreign governments last year, according to regulatory filings. This revelation, required for the first time under a new SEC rule, provides a glimpse into the financial transactions of major oil companies in their global quest for oil and offers insights into whether U.S. taxpayers are receiving a fair share of the value of soaring U.S. production.
Exxon Mobil, Chevron Corp, and ConocoPhillips, the three largest U.S. energy exploration companies, paid a combined total of $42.3 billion to foreign governments in 2023, according to the disclosures. This amount is approximately eight times more than what they paid in the United States. The payments include taxes, royalties, and other items.
Exxon, the largest U.S. oil company, paid out $22.5 billion in taxes, royalties, and other items overseas, with the United Arab Emirates, Indonesia, and Malaysia topping the list. In contrast, Exxon made about $2.3 billion in U.S.-based payments in 2023, including just $1.2 billion to the U.S. Internal Revenue Service.
Chevron, meanwhile, paid $14.6 billion to foreign governments in 2023, including $4 billion to Australia alone. Chevron paid just $2 billion in the U.S., according to the filings.
ConocoPhillips paid $5.2 billion to foreign governments, with just $1.3 billion going to the U.S.
Transparency advocates have been pushing for this rule for more than a decade to shine a light on Big Oil’s foreign financial transactions and provide a sense of whether U.S. taxpayers are getting a fair share of the value of soaring U.S. production. The new SEC requirement is a result of Section 1504 of the Dodd-Frank Act, which opened the door for the new disclosures around overseas activities by energy exploration and production companies.
The United States has become the world's largest oil and gas producer in recent years, thanks mainly to a boom in the massive Permian Basin in Texas and New Mexico. However, the truth is that, here in the U.S., we get one of the worst deals for the extraction of our natural resources, according to Michelle Harrison, deputy general counsel for EarthRights International, an environmental advocacy group.
The new disclosures come as the U.S. government is considering ways to increase revenue from the oil and gas industry. The Biden administration has proposed a fee on methane emissions from the oil and gas sector, which could generate billions of dollars in revenue. Additionally, some lawmakers have called for a higher tax on the industry to help fund infrastructure projects and other priorities.
The revelation of massive payments to foreign governments by U.S. oil companies highlights the need for greater transparency and accountability in the energy sector. As the U.S. continues to be a leading producer of oil and gas, it is crucial to ensure that the industry is paying its fair share of taxes and contributing to the well-being of the American people.
Exxon Mobil, Chevron Corp, and ConocoPhillips, the three largest U.S. energy exploration companies, paid a combined total of $42.3 billion to foreign governments in 2023, according to the disclosures. This amount is approximately eight times more than what they paid in the United States. The payments include taxes, royalties, and other items.
Exxon, the largest U.S. oil company, paid out $22.5 billion in taxes, royalties, and other items overseas, with the United Arab Emirates, Indonesia, and Malaysia topping the list. In contrast, Exxon made about $2.3 billion in U.S.-based payments in 2023, including just $1.2 billion to the U.S. Internal Revenue Service.
Chevron, meanwhile, paid $14.6 billion to foreign governments in 2023, including $4 billion to Australia alone. Chevron paid just $2 billion in the U.S., according to the filings.
ConocoPhillips paid $5.2 billion to foreign governments, with just $1.3 billion going to the U.S.
Transparency advocates have been pushing for this rule for more than a decade to shine a light on Big Oil’s foreign financial transactions and provide a sense of whether U.S. taxpayers are getting a fair share of the value of soaring U.S. production. The new SEC requirement is a result of Section 1504 of the Dodd-Frank Act, which opened the door for the new disclosures around overseas activities by energy exploration and production companies.
The United States has become the world's largest oil and gas producer in recent years, thanks mainly to a boom in the massive Permian Basin in Texas and New Mexico. However, the truth is that, here in the U.S., we get one of the worst deals for the extraction of our natural resources, according to Michelle Harrison, deputy general counsel for EarthRights International, an environmental advocacy group.
The new disclosures come as the U.S. government is considering ways to increase revenue from the oil and gas industry. The Biden administration has proposed a fee on methane emissions from the oil and gas sector, which could generate billions of dollars in revenue. Additionally, some lawmakers have called for a higher tax on the industry to help fund infrastructure projects and other priorities.
The revelation of massive payments to foreign governments by U.S. oil companies highlights the need for greater transparency and accountability in the energy sector. As the U.S. continues to be a leading producer of oil and gas, it is crucial to ensure that the industry is paying its fair share of taxes and contributing to the well-being of the American people.
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