President Barack Obama’s budget outline has called for eliminating substantial tax breaks and increasing fees for the oil and natural gas industry, while boosting funding for cleaner fuel development.
Obama has made transforming the way Americans use energy a priority for his presidency. He has pledged to double U.S. renewable energy production in three years and wants 10 percent of electricity to come from clean energy sources by 2012.
His budget includes more than $50 million in increased funding for the Interior Department to conduct environmental studies to assess alternative energy resources and bolster clean energy development.
Obama’s plan, which must still be approved by Congress, would levy an excise tax on Gulf of Mexico oil and natural gas, raising $5.3 billion in revenue from 2011 to 2019.
This new 13 percent tax on all oil and gas production in the Gulf would only affect those companies that are currently not paying any royalties due to a loophole, said an Interior Department official. The official said producers who already pay royalties will receive a tax credit.
Oil industry execs, lobbyists and their tame politicians are already whining about the proposals. When will these thugs realize that American voters are tired of being screwed by the Oil Patch Boys?