The U.S. oil and natural gas industry need not fear a federal drilling ban — for now — but royalty rates may be hiked for the first time in a century and leasing terms could be tightened based on an analysis by the Department of Interior.

DOI

After taking office in January, President Biden issued Executive Order 14008, which called for a review of the federal oil and gas leasing and permitting program for the onshore and offshore. The 18-page report issued on Friday (Nov. 26) primarily focused on necessary reforms to the fiscal terms, leasing process and remediation requirements related to the oil and gas programs.

The Interior Department “has an obligation to responsibly manage our public lands and waters – providing a fair return to the taxpayer and mitigating worsening...