U.S. Regulators Race To Save $20 Billion Of Oil & Gas Resources

The U.S. federal agencies regulating offshore leases are considering granting royalty relief to new oil and gas drilling in shallow waters in the Gulf of Mexico, in a bid to avoid the stranding of what they estimate could be US$20 billion worth of American oil and gas resources. In new research this week, the Bureau of Safety and Environmental Enforcement (BSEE) and the Bureau of Ocean Energy Management (BOEM) recommend a discount royalty rate for what they propose should be the Gulf of Mexico Shallow Water Province of water depths fewer than 200…