The US Department of the Interior (DOI) is weighing up whether or not to cut the royalty rate for deep-water oil and gas projects in the US Gulf of Mexico, according to the Houston Chronicle.
Lowering the government’s cut is seen as a way to encourage increased offshore energy production as per the policy promises of President Donald Trump, who wants to maximise US energy independence for economic and security reasons.
Under plans being looked at by the DOI’s Royalty Policy Committee, the federal government’s take would fall from 18.75% to 12.5% for fields deeper than 200 feet.
Royalty rates for shallow water sites were already lowered to 12.5% last July.
