OBAMA's administration budget is out and it does not seem to bring much
of good news. The budget shall see the US oil and gas producers pay extra
federal tax of $27 million over the next ten years. Also it includes a proposal
to hike the geological and geophysical amortization period for independent
producers to seven years. The proposal to raise $10.72 billion over 10 years by
modifying rules for dual capacity taxpayers could spell doom for US-based
multinational oil companies and at the same time domestic producers' expenses on
federal acreage would rise with proposed onshore drilling permit processing
fees, offshore inspection fees, and fees for not meeting lease development
deadlines.
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