DOI decides against lowering royalty rates for offshore leases

DOI decides against lowering royalty rates for offshore leases

Department of the Interior (DOI) secretary Ryan Zinke said on Tuesday he will not reduce royalty rates for offshore lease sales, according to Reuters.

There had been an expectation that the rates would be lowered after February’s recommendation by DOI’s Royalty Policy Committee to reduce rates from 18.75% to 12.5%.

The idea behind a reduction in rate would be to encourage participation by oil companies and to boost production.

But Zinke said that, for the time being at least, the government can maintain the higher royalties on leased sites in federal waters “without compromising the record production and record exports our nation is experiencing.”

Donal Scully

With 28 years experience writing and editing for newspapers in the UK and Hong Kong, Donal is now based in California from where he covers the Americas for Splash as well as ensuring the site is loaded through the Western Hemisphere timezone.

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