No lower offshore drilling royalty rates

The royalty rate on future offshore oil and gas lease sales won’t be lowered “at this time,” the Interior Secretary Ryan Zinke said adding that a move wasn’t necessary in part because of the healthy economy and the new federal tax law.

The DOI said that the royalty rate for drilling in 200 meters of water or more off the country’s coasts will remain at 18.75 percent and not drop to 12.5 percent as had been recommended by the Royalty Policy Committee 

Share this post


Link to post
Share on other sites

sounds like a love poem to me

“The pilot light of American energy has been re-lit by President Trump, and the President’s energy dominance strategy is paying off,” Zinke said

Share this post


Link to post
Share on other sites

There is also a fact that drop in rates would incentivize more production of oil and gas. But I am still against the lower rates

Share this post


Link to post
Share on other sites

We should also note the optics of another giveaway to the oil industry as gasoline prices approach or exceed $3.00 a gallon

Share this post


Link to post
Share on other sites

The royalty charged In North Dakota and New Mexico, it is 18.75 percent, and in Texas, it is 25 percent. Why should the federal government charge lower royalty than the states which gives away billions of US taxpayer revenue over the life of the lease?

  • Like 1

Share this post


Link to post
Share on other sites
Sign in to follow this  
Followers 0