Energy and Natural Resources

Terry Dinan, senior advisor for CBO’s Microeconomic Studies Division, testifies before the House Committee on Energy and Commerce’s Subcommittee on Energy on federal support for developing, producing, and using fuels and energy technology.

In this report, CBO analyzes how the government manages access to oil and natural gas on federal lands and eight policy options that could modestly increase federal income from oil and gas leasing without significantly reducing production.

In fiscal year 2015, the federal government supported the development, production, and use of fuels and energy technologies through tax preferences totaling $15.8 billion and spending by the Department of Energy totaling $5.4 billion.

Terry Dinan, Senior Advisor for CBO’s Microeconomic Studies Division, testifies on the Renewable Fuel Standard before the House Committee on Science, Space, and Technology’s Subcommittee on Oversight and Subcommittee on Environment.

CBO estimates that the development of shale resources will increase GDP by about two-thirds of 1 percent in 2020 and about 1 percent in 2040; the increases in GDP will lead to slightly larger percentage increases in federal revenues.

Using the rising amounts of renewable transportation fuels required by the Renewable Fuel Standard will be difficult. CBO looks at how those requirements and alternatives would affect fuel and food prices and greenhouse gas emissions.

CBO's report assesses how the credits affect the relative cost of owning an electric vehicle, and how cost-effectively the credits reduce gasoline consumption and greenhouse gas emissions.

CBO estimates that, under current laws and policies, the government’s gross proceeds from all federal oil and gas leases on public lands will total about $150 billion over the next decade.

CBO’s analysis suggests that the projected high cost of using CCS means that current federal programs are unlikely to support widespread use of the technology. The study discusses several other options that lawmakers might consider.

Improving energy security—the ability of U.S. households and businesses to accommodate disruptions of supply in energy markets—requires considering policies related to the nation’s supply of and demand for oil.