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Didja know that.......

ANWR Oil maybe worth $111 BILLION in Taxes and Royalties?

Washington - Chairman Richard Pombo (R-CA) of the House Resources Committee released figures on ANWR oil revenues to the Federal Government this week stating that a Congressional Research Report analyzing tax and royalty revenues from oil and gas production in the 10-02 Area of ANWR would raise $111 billion over 30 years for the Federal Government.

That’s over $10 million injected into federal coffers everyday for over 30 years with zero cost the public.

The Congressional Research Service (CRS) based its figures on the median prediction of 10.3 billion barrels of oil the USGS stated in its 1998 study of potential 10-02 Area reserves. Over $76 billion in income taxes would be levied on oil companies and $35 billion raised in royalties and bonus bids. At $60 per barrel (the current and predicted average price for oil this year) the CRS estimates $89 billion could be raised in income taxes. $111 billion dollars would be most probably the largest tax windfall the US Government would receive from a single source in its history.

The CRS report went further in predicting revenues if the oil from the 10-02 Area of ANWR reached 16 billion barrels as the USGS report possibly states it could. At this amount the US Government could raise $118 billion in corporate income taxe and $55 billion in royalties. Oil from the 10-02 Area of ANWR is expected to reach a peak of 1 million barrels per day and keep the Trans-Alaska Pipeline in operation (which has a capacity of 2.1 million bpd) for over 30 years.

Even at its lowest potential estimate of 5.9 billion barrels predicted by the USGS the 10-02 Area would contain the largest oil field found in the western world in over 30 years.

Chairman Pombo stated about ANWR that, “The ANWR energy issue has been a cash cow for environmental fundraising groups and obstructionists in Congress for two decades. Enough is enough! Its time to make this resource a cash cow for each and every American taxpayer.”