New disclosures filed with the U.S. Securities and Exchange Commission (SEC) have lifted the veil on billions of dollars paid by oil and gas companies to governments worldwide. For the first time, these filings offer a detailed look at how much major corporations like ExxonMobil and Chevron pay in taxes, royalties, and other fees. However, a striking takeaway is that the U.S. government may be getting a raw deal compared to other nations.

The disclosures, years in the making, aim to shed light on potential corruption and expose the unfair deals that often allow elites to profit while failing to improve living conditions for ordinary citizens. This disparity is starkly illustrated by the experiences in Equatorial Guinea. Tutu Alicante, executive director of EG Justice, recounted personal tragedies in his family, where despite ExxonMobil’s $189 million payment to the Equatoguinean government in 2023, hospitals in the country remain under-resourced, a symbol of wealth not reaching those in need.

The SEC-mandated reports are a part of a broader effort to ensure transparency, requiring companies to disclose payments to all governments. In 2023, ExxonMobil paid $32 billion across 28 countries, while Chevron reported $16.6 billion to 17 countries. These numbers are meant to help civil society organizations and citizens match payments to government reports, potentially revealing corruption or inconsistencies.

Aubrey Menard, a senior policy advisor at Oxfam America, highlighted one of the most startling revelations from the filings: the disparity in taxes paid by oil companies across different countries. For example, ExxonMobil paid five times more in taxes to the United Arab Emirates ($5.6 billion) than it did to the U.S., despite producing a third of its oil domestically. Chevron similarly paid more taxes to Angola than to the U.S., even though half of its oil production comes from American soil. Menard noted that this suggests the U.S. might be getting a “bad deal.”

Exxon and Chevron have pushed back on this interpretation, citing the complexities of comparing payments across jurisdictions. Both companies argued that differences in resource ownership, royalty structures, and project timelines make direct comparisons difficult. Exxon added that U.S. state and local taxes were not included in the disclosures, and Chevron noted that in the U.S., many royalties go to private landowners rather than the government.

Nonetheless, advocates like Zorka Milin of the Financial Accountability and Corporate Transparency Coalition believe these disclosures should spark a broader conversation about the oil industry’s tax obligations. With the Biden administration proposing to eliminate fossil fuel tax breaks that could raise $110 billion over a decade, these new revelations come at a critical time. Milin suggested that the oil companies’ reluctance to reveal detailed payment data, especially at a contract level, signals their discomfort with public scrutiny. 

Beyond the U.S., the filings have broader implications for other nations. Simon Taylor, co-founder of Global Witness, pointed out that many countries receive unfair deals, with companies exploiting weak governance to strike lucrative agreements. Taylor argued that the rising costs of oil production, combined with global commitments to phase out fossil fuels, will put further pressure on governments to ensure they secure fairer deals for their citizens.

These SEC reports were a hard-fought victory for transparency advocates. Though oil companies succeeded in limiting some details—such as contract-specific payments—the disclosures mark a step forward in revealing the financial relationships between oil giants and governments. As the world grapples with the transition to cleaner energy, these revelations will play a crucial role in shaping policy debates and ensuring that oil wealth is more equitably distributed.