Breitling Oil and Gas CEO Chris Faulkner talks about U.S. Secretary Ken Salazar’s proposed plan to increase onshore royalty rates for oil and gas.
Oil and gas today, here is Chris Faulkner with Breitling Oil and Gas: US secretary of Interiors Kim Salazar’s plans to raise on-shore oil and gas royalty rates by nearly 50% is simply a bad idea. Salazar’s said recently that raising royalties for oil and gas produce from federal on-shore acerage from 12.5% to 18.5% is an appropriate fare market value rate. The increase will fly in the face of the energy strategy President Obama outline on his state of the Union address. While oil and gas production in public land is one of the top sources of federal revenue. The proposed 50% increase in royalty payments will further deter production and stay for much needed investment for American struggling economy . Development cost will further climb if the bureau of land management were to move forward with a highly anticipated chemical disclosure in well integrity requirements for hydraulics fracturing on those lands.
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