Obama Budget Won’t Include Oil Royalty Rate Hike

By Paul Ausick Published Feb 2, 12:28PM EST

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President Obama will not include a royalty rate increase on oil produced on federal lands in his 2013 fiscal year budget. The current onshore royalty rate is 12.5% and the offshore rate is 18.75%.

A Department of Interior official told Bloomberg News that the administration is working on a proposal to increase the royalty payments, but that such an increase is “not imminent.”

The government is looking forward to another banner year for offshore oil lease auctions. In 2010 the federal government took in nearly $950 million at its lease sales in the same area. The next auction is scheduled for June.

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About the Author Paul Ausick →

Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.

He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.