Royalty relief, not industry windfall, benefits US

An economic study indicates that deepwater Gulf of Mexico properties have not been a windfall for the oil and gas industry, even with the Deep Water Royalty Relief Program.Although the program has spurred a leasing boom in deepwater Gulf of Mexico (OGJ, May 8, 2000, p. 24), by our calculations, the industry is yet to experience a calendar year of positive after-tax cash flow.One benefit of the royalty relief program has been that it has diverted billions of dollars, which otherwise might have gone overseas, to bonus payments, lease rentals, seismic, geological studies, drilling, construction, and operations in the Gulf of Mexico, thus creating thousands of US jobs.But the expiration of th...

Why Register?

Non-subscribers can only view whitepapers by providing name, home and email address, phone number and other information and comment on/rate articles.

Why Subscribe?

Oil & Gas Journal subscribers with login credentials can access these premium features of OGJ Online:

  • Current Issue – an html version of the current week's issue of Oil & Gas Journal.
  • Past Issues – An Electronic OGJ Archive. A keyword-searchable archive of all issues of Oil & Gas Journal dating back to 1990; also searchable by issue date.
  • Market Journal – a weekly round-up of the oil and gas markets, with observations from leading analysts.
  • Editor's Perspective – a short article of insight and opinion by the Editor of Oil & Gas Journal.
  • OGJ Industry Stats – quick access to current industry statistics from Oil & Gas Journal.
  • OGJ Survey Downloads - quick access to exclusive reports from Oil & Gas Journal.


Subscriber Help or Subscribe

Oil & Gas Journal Subscribers: Have your subscription number (from the mailing label on the cover of your Oil & Gas Journal) and e-mail address ready to set up your online account through Customer Service Assistant.

If you're not an Oil & Gas Journal subscriber, start a subscription and gain access to the subscriber areas of OGJ Online now.

Stay Connected