Oil industry opposes proposed royalty increase


New proposals by the Biden administration and Congress could have a major impact on Louisiana’s oil and gas industry, reports Houma Today.

On Nov. 26,  the Interior Department proposed an  increase in royalty rates, or the price the government charges oil and gas companies to drill on federal lands and waters, including the Gulf of Mexico.

“The Interior Department has an obligation to responsibly manage our public lands and waters – providing a fair return to the taxpayer and mitigating worsening climate impacts – while staying steadfast in the pursuit of environmental justice,” Interior Secretary Deb Haaland said in releasing the report.

Oil-industry groups expressed immediate opposition. “During one of the busiest travel weeks of the year, when rising costs of energy are even more apparent to Americans, the Biden administration is sending mixed signals,” Frank Macchiarola, senior vice president with the American Petroleum Institute, said in a news release. Read the entire story.