WASHINGTON - The U.S. interior secretary on Thursday told oil and gas company executives the Obama administration has not declared war on their industry, but their companies will lose some tax breaks and he suggested they may pay higher royalties on production from public lands.
"Just as your shareholders expect you to get a fair rate of return on your investments and to be wise stewards of your balance sheets, the American people are asking the same of us as we manage their resources," Secretary Ken Salazar said in a speech to the board of the directors of the American Petroleum Institute, the trade group for big oil and gas companies.
"But this is not, as some have suggested, a war on the oil and gas industry," he said.
Still, Salazar said the Obama administration wants to end certain tax breaks for the industry that it believes are no longer needed and the Interior Department will review U.S. royalty rates that he said are very low compared to other countries.
"The American people want to know they are getting a fair deal," Salazar said.
Energy companies have said repealing tax breaks and imposing higher fees will discourage domestic oil and gas production, making the United States more dependent on foreign energy supplies.
They have also called for access to more government lands where drilling is prohibited or heavily restricted.
Salazar said oil and natural gas will remain "a cornerstone of our nation's energy base" for many more years, but alternative energy sources, like wind and solar power, must also be developed.
API spokeswoman Karen Matusic said the trade group's board welcomed the opportunity to hear Salazar's views on energy development.
"He recognizes the important role of oil and natural gas in meeting the nation's economic and energy goals, and we look forward to working with him," she said.
"Just as your shareholders expect you to get a fair rate of return on your investments and to be wise stewards of your balance sheets, the American people are asking the same of us as we manage their resources," Secretary Ken Salazar said in a speech to the board of the directors of the American Petroleum Institute, the trade group for big oil and gas companies.
"But this is not, as some have suggested, a war on the oil and gas industry," he said.
Still, Salazar said the Obama administration wants to end certain tax breaks for the industry that it believes are no longer needed and the Interior Department will review U.S. royalty rates that he said are very low compared to other countries.
"The American people want to know they are getting a fair deal," Salazar said.
Energy companies have said repealing tax breaks and imposing higher fees will discourage domestic oil and gas production, making the United States more dependent on foreign energy supplies.
They have also called for access to more government lands where drilling is prohibited or heavily restricted.
Salazar said oil and natural gas will remain "a cornerstone of our nation's energy base" for many more years, but alternative energy sources, like wind and solar power, must also be developed.
API spokeswoman Karen Matusic said the trade group's board welcomed the opportunity to hear Salazar's views on energy development.
"He recognizes the important role of oil and natural gas in meeting the nation's economic and energy goals, and we look forward to working with him," she said.
