President Obama Wants To Increase Your Cost of Gas
The Obama administration is looking to increase the royalties charged to oil and gas companies who drill on land owned by the American people. The administration is telling us they want to get the “best return” of the taxpayers, according to a Daily Caller article.
Do they not understand that the increased royalty fees will be passed along to us, the taxpayer?
If not, then they have no understanding how business works.
At present, oil and gas companies’ royalty rates are set at 12.5% of the value of the production on those federal lands. The administration has said that states and private landowners have a higher royalty rate.
As far as I am concerned, private land owners can charge what the market allows them to.
The question is, if we the taxpayer already own the federal and state lands, should the royalties that these companies pay and pass along to the consumer be raised?
Or do you believe the federal and state government should charge what the market will bear or dictates?
According to government data, currently oil and natural gas production on federal lands only account for approximately 10% and 31%, respectively. That is below the levels recorded in 2010. Private and state lands have seen an 89% increase in oil production and a 37% increase in gas production.
What are your thoughts about this?
Let’s discuss this today on my show The Live with Renk show, which airs Monday through Friday 9 a.m. to noon, to let me know your thoughts at (269) 441-9595.
Or please feel free to start a discussion and write your thoughts in the comment section.