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Climate Politics

Big Oil Sees Upside of Climate Bill As Small Drillers Brace for New Fees, Taxes

  • Supermajors benefit from carbon capture, hydrogen tax credits
  • Small producers at risk from leasing curbs and methane fee
A gas flare stack at an oil well in Midland, Texas

A gas flare stack at an oil well in Midland, Texas

Photographer: Sergio Flores/Bloomberg
Updated on

Oil and gas executives from Exxon Mobil Corp. to Occidental Petroleum Corp. have been quick to applaud parts of the $437 billion climate, tax and health-care legislation that Congress is poised to pass this week. 

The enthusiasm from Big Oil isn’t shared by some smaller and independent producers, which pump the vast majority of the crude and gas produced in the US. They’re bracing for a raft of new fees and taxes, including penalties on leaking methane and much higher payments for drilling on federal land.