H.R.2053 - Stop Giving Big Oil Free Money Act (119th Congress)
Summary
H.R. 2053, the "Stop Giving Big Oil Free Money Act," aims to prevent the Secretary of the Interior from issuing new oil and natural gas production leases in the Gulf of Mexico to companies that do not renegotiate existing leases to include royalty payments when oil and gas prices exceed specified thresholds. This bill targets companies benefiting from royalty relief under the Outer Continental Shelf Deep Water Royalty Relief Act. The bill also addresses the transfer of leases, ensuring that new owners also adhere to the renegotiated royalty terms.
Expected Effects
The likely effect of this bill is to increase royalty revenue for the government from oil and gas production in the Gulf of Mexico when prices are high. This could discourage some companies from seeking new leases or transferring existing ones without agreeing to the new royalty terms. Ultimately, it may lead to a decrease in oil and gas production in the Gulf, or force companies to renegotiate their leases.
Potential Benefits
- Increased government revenue from royalties during periods of high oil and gas prices.
- Potentially fairer deals for taxpayers regarding resource extraction on public lands.
- Could incentivize companies to operate more efficiently, knowing they will pay royalties at higher price points.
- May encourage investment in alternative energy sources as the profitability of oil and gas extraction decreases slightly.
- Could lead to more responsible management of offshore oil and gas resources.
Most Benefited Areas:
Potential Disadvantages
- Potential decrease in oil and gas production in the Gulf of Mexico, potentially leading to higher energy prices.
- Increased regulatory burden on oil and gas companies, potentially stifling investment and job creation.
- Possible legal challenges from oil and gas companies arguing that the renegotiation requirement is unfair or violates existing contracts.
- Could disproportionately affect smaller oil and gas companies that may not have the resources to renegotiate leases.
- May lead to companies abandoning leases, resulting in stranded assets and environmental concerns.
Most Disadvantaged Areas:
Constitutional Alignment
The bill appears to align with Congress's power under Article I, Section 8 of the Constitution to regulate commerce and manage federal property. The Outer Continental Shelf Lands Act, which this bill amends, is itself based on this constitutional authority. There are no apparent violations of individual rights or liberties guaranteed by the Constitution or its amendments. The bill aims to ensure fair compensation to the government (and thus, the people) for the extraction of resources from federal lands.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).