"Resource Extraction" regulation gets deleted south of the border
The US Congress has hit the delete button on a bill that required natural resource companies to disclose payments made to foreign governments, including taxes, royalties, fees, community investments and any information related to contract negotiations, commercial agreements and bids for exploration licenses. The regulation applied to oil and gas producers as well mining companies.
The bill was opposed by US oil majors, who argued they would need to reveal too much information, placing them at a competitive disadvantage over state-owned oil giants. Supporters argued the bill would help curb corruption in foreign jurisdictions. State-owned companies own 96% of the world's oil reserves and control 75% of the world's oil production.
The regulations have since been adopted by Canada and the European Union, who now may find themselves at a competitive disadvantage to their US counterparts.
The "resource extraction rule" was passed by the Obama Administration last June as part of the 2010 Dodd-Frank Wall Street Reform. The reversal is a small part of President Trump's promise to roll-back thousands of regulations introduced since the 2008 financial crisis.