Private Profits, Public Risks

Private equity investments in nearly 2,700 oil and gas wells on federal and tribal lands in the western United States could leave taxpayers with cleanup costs up to $384 million. The report identifies 19 private equity firms, including Blackstone and Carlyle Group, that invested in 35 companies permitted to drill on federal lands since 2017. Current regulations only require companies to set aside approximately $5.7 million for cleanup, representing 1.5% of the estimated total cost. Colorado and New Mexico face the highest potential liabilities, with estimated cleanup bills of $161 million and $108 million, respectively.

• Private equity-backed oil and gas operations on federal and tribal lands across eight states could result in decommissioning and cleanup costs of nearly $384 million for U.S. taxpayers, as current rules only require companies to set aside approximately $5.7 million, which is about 1.5% of the likely bill.
• Colorado and New Mexico have the highest potential cleanup liabilities from private equity-backed drillers on federal lands, with costs estimated at up to $161 million and $108 million, respectively.
• Since 2017, 19 private equity firms—including KKR, Apollo Global Management, Warburg Pincus, Blackstone, and Carlyle Group—have invested in 35 oil and gas companies that were granted permits to drill on federal lands.
• Private equity-backed drillers have a significant presence in federal drilling permits, accounting for 78% of approved permits in Colorado and 50% in Utah since 2017.
• While private equity-backed onshore drillers have paid nearly $2 billion in drilling royalties to the Interior Department since 2017, these payments are considered insufficient compared to royalties charged by states.

APA

Private Equity Stakeholder Project (2023). Private Profits, Public Risks. https://pestakeholder.org/reports/private-profits-public-risks/

Chicago

Private Equity Stakeholder Project. Private Profits, Public Risks. 2023. https://pestakeholder.org/reports/private-profits-public-risks/.

Wikipedia

{{cite report |author=Private Equity Stakeholder Project |title=Private Profits, Public Risks |date=8 August 2023 |url=https://pestakeholder.org/reports/private-profits-public-risks/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{privateequitystakeholderproject2023private, author = {{Private Equity Stakeholder Project}}, title = {{Private Profits, Public Risks}}, institution = {Private Equity Stakeholder Project}, year = {2023}, month = aug, url = {https://pestakeholder.org/reports/private-profits-public-risks/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }