Biden increases oil royalty rate, scales back lease sales
The Associated Press - April 16, 2022 7:46 am
BILLINGS, Mont. (AP) — The Interior Department is moving forward with the first onshore sales of public oil and gas drilling leases under President Joe Biden, but will sharply increase royalty rates for companies that extract oil. Friday’s announcement comes as federal officials weigh efforts to fight climate change against pressure to bring down high gas prices.
The royalty rate for new leases will increase to 18.75% from 12.5%. That’s a 50% jump and marks the first increase since the 1920s.
Republicans want Biden to expand U.S. crude production. However, he faces calls from within his own party to do more to curb fossil fuel emissions that are heating the planet.