New U.S. budget cuts tax breaks for oil and gas industry

摘要

President Barack Obama's budget plan could have a major effect on oil and natural gas companies, cutting back on tax breaks and royalty relief for the industry.rnThe budget proposal will use a new excise tax on offshore oil and gas production in the Gulf of Mexico to close what the administration termed "loopholes that have given oil companies excessive royalty relief." This new tax is set to begin in 2011, in hopes that the economy will have recovered by then.rnThe government will also begin charging a new fee on non-producing leases in the Gulf of Mexico, in order to encourage companies to start producing or relinquish the leases. The Department of the Interior is referring to this as a "use or lose" plan.