The United States' Performance on the Resource Governance Index
The U.S. received a "satisfactory" score of 92, ranking 2nd out of 58 countries. While the petroleum industry is frequently a topic of politicized debate, the U.S. scored well on all components.
(out of 58)
(out of 100)
|2||Institutional & Legal Setting||88|
|4||Safeguards & Quality Controls||89|
Institutional & Legal Setting (Rank: 2nd/58, Score: 88/100) learn more
The U.S. has a detailed regulatory framework governing petroleum extraction in the Gulf of Mexico. Although its systems of revenue collection are particularly complex, it earned a "satisfactory" score of 88.
In 2010 the U.S. Department of the Interior's Minerals Management Service (MMS) was divided into three new regulatory bodies: the Bureau of Ocean Energy Management (BOEM), the Bureau of Safety and Environmental Enforcement (BSEE), and the Office of Natural Resources Revenue (ONRR).
A percentage of revenues accruing from federal offshore extraction is shared with coastal states, with some receiving additional revenues under the 2006 Gulf of Mexico Energy Security Act (GOMESA). Royalties, bonuses, rents, and other payments collected by ONRR are disbursed annually to the U.S. Treasury, individual states, American Indian tribes, and other federal conservation funds. Outside of ONRR's jurisdiction, federal income taxes are collected directly by the Internal Revenue Service.
Reporting Practices (Rank: 1st/58, Score: 97/100) learn more
The U.S. received a "satisfactory" score of 97, the product of detailed government disclosure on nearly all aspects of petroleum extraction in the Gulf.
Information on the leasing process and lease sales are publicly available, with bidding results and contract information available on the BOEM website. BOEM also provides regular reports on investments in exploration, the names of companies operating in the Gulf, and production data by company and state. These reports tend to be comprehensible, but the BOEM does not have access to the industry's real-time production data, making it difficult to determine accurate revenue figures.
Revenue information is reported annually by ONRR, though much of it is in aggregated form. ONRR also publishes historical data on key payments including royalties, bonuses, license fees, and acreage fees. A number of government agencies, such as the Energy Information Administration, publish additional data on the U.S. petroleum sector.
Under Section 1504 of the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act, oil, gas, and mining companies that file annual reports with the U.S. Securities and Exchange Commission are required to report the amounts they pay to the U.S. government and foreign governments for access to resources. Reports must be made on a country-by-country and project-by-project basis.
Safeguards & Quality Controls (Rank: 4th/58, Score: 89/100) learn more
Government oversight of Gulf petroleum production has improved, leading to a "satisfactory" score of 89.
As the licensing authority for offshore leases, BOEM has limited discretionary powers, although it may reject bids that do not meet its "fair market criteria." Both BOEM and BSEE have procedures for appealing licensing decisions. Federal regulatory and revenue-collecting agencies, ONRR included, are also subject to audits, and the results are reported to Congress.
The Government Accountability Office, the Office of the Inspector General and other external organizations routinely oversee and monitor U.S. minerals management activities.
Additionally, both houses of Congress have natural resources committees that regularly scrutinize petroleum management and revenue collection issues.
Enabling Environment (Rank: 5th/58, Score: 90/100) learn more
The U.S. performed relatively well on global measurement of government effectiveness, democratic accountability and budget openness, receiving a "satisfactory" score of 90.
Subnational Transfers (Rank: 4th/30, Score: 94/100) learn more
Gulf states receive a share of petroleum revenues under various revenue-sharing regimes. Under Section 8(g) of the Outer Continental Shelf Lands Act, all coastal states receive 27 percent of revenues from federal leases on lands within three miles of their seaward boundaries. GOMESA also gives coastal states a 37.5 percent share of revenues from certain oil and gas leases in the Gulf. BOEM publishes annual reports on the transfers.
INSTITUTIONAL & LEGAL SETTING
SAFEGUARDS & QUALITY CONTROLS
To explore all data and compare country scores, use the RGI Data Tool.
Key Economic Indicators
|GDP (constant 2011 international $ billion)||12,635.7||14,228.1||14,991.3|
|GDP per capita, PPP (constant 2005 international $)||39,545||42,516||42,486|
|Oil and gas revenues (% total government revenue)||0||0|
|Extractive exports (% total exports)||4||6||14|