The Independent Petroleum Association of America has urged the U.S. Department of Interior to consider royalty reductions or other relief for all wells producing 50 b/d or less.
"With oil prices now at record lows, wells producing 50 b/d are uneconomic. Royalties need to be reduced for these wells, otherwise they will be shut in or abandoned, further reducing domestic production," IPAA said.
"Better still would be a 2-year royalty reinvestment policy for these uneconomic wells. If every royalty dollar for an uneconomic well is reinvested into keeping the well on line, the greater the return is to the American public. Both the royalty investment account or reduced royalty app...