Two new studies commissioned by API illustrate the benefits of the 1995 Deep Water Royalty Relief Act. As we explained on Monday, the act purposefully created financial incentives for drilling in the deep waters of the Gulf of Mexico, and it led to new technologies and huge investments in the production of domestic oil and natural gas.
As API's Erik Milito explains, "While this Act was primarily intended to encourage oil production at a time when the nation was in desperate need of new oil supplies, these studies show that they were also a boon to U.S. taxpayers and great stimulus to the nation's economy."
The study by Advance Resources International (ARI) examined the deep water leases purchased by oil and natural gas companies between 1996 and 2000. It found that 3,391 deep water leases... more »
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