U.S. to consider raising oil, gas royalty rates | Reuters

WASHINGTON The Actual Obama administration will choose later this year if these people should raise the royalty rates energy companies would pay on the oil and also propane produced about federal leases, U.S. Interior Secretary Ken Salazar said in Tuesday.Companies now pay a royalty price https://www.youtube.com/watch?v=4Sw_4UsvDQ4 - royalty free wedding photos - which range from 12.5 percent for you to 18.75 percent associated with the value of the actual oil and also gas that they drill. However, Salazar mentioned other countries cost higher royalties as well as the Obama administration desires to make positive U.S. taxpayers are generally treated fairly."We are usually considering royalty prices and also compensation paid pertaining to both onshore and also offshore oil and gasoline development," Salazar informed Reuters inside a wide-ranging interview. "We is most likely to always be able to make sure the actual American citizen is getting its fair return."Salazar refused in order to speculate in just how much the royalties rates may be changed, but said the Interior Department will determine just before the end in the year."I don't wish to prejudge where we're likely to go, simply because it's a complicated issue," he said. "We want being fully informed, frankly, prior to we acquire towards the point exactly where we use a proposal about the way we wish to adjust royalties."Salazar rejected arguments by simply energy companies that higher royalties would discourage domestic oil and gas production, pushing companies to adopt their business with other countries."From the global point involving view, we have a shortage of oil, and when you start looking at your emerging consumption coming from areas just like China and also India and furthermore the remaining part regarding the Third World, there's going being any market, seems to me, for oil along with gas," he said.Salazar stated an exclusive landowner leasing his property to some organization drilling with regard to oil or even gas would insist on a "fair return regarding his resources. "We have to complete exactly your same upon behalf with the American folks (with public lands)," he said.Salazar said oil as well as gasoline companies "have completed well on this country" plus they have got huge cash reserves from the record profits they have earned."That doesn't mean that will you want to become punitive as well as unfair to end up being able to them," he said. "But I think what we want to do can be figure out what's fair for your American citizen, what ought to the particular American taxpayer become acquiring back now."Salazar also stated he supports expanding offshore oil and fuel production as a part of the larger U.S. energy plan. The Particular department will be thinking about contracting private companies to become able to collect seismic data on oil along with gasoline reserves within lately opened places off your Atlantic and Pacific coasts, since current information is outdated, he said."I do not really know how you probably can easily make honest thoughtful decisions, if it is to develop or perhaps to not develop (offshore supplies), with out the actual best science on the table," Salazar said.He mentioned it would price about $1 billion to collect new information in offshore sources and the department will determine through the summer how anyone can proceed.Although Salazar is actually available to developing newer and much more effective offshore areas, he said your Obama administration will not assistance drilling in Alaska's Arctic All-natural Wildlife Refuge.Lawmakers have launched legislation in order to would allow companies to be able to tap the actual refuge's oil by means of directional drilling based outside ANWR's boundaries on and also on beneath the reserve at an angle."Unless there's something that I do not know with regards to directional drilling within the proposal, we tend to be really not opening ANWR," Salazar said.(Reporting simply by Tom Doggett; Editing simply by Marguerita Choy)