And why would this report be kept secret? Well, it sure makes the U.S. government look like a stooge or an enabler of the oil companies. Companies that drill in the Gulf of Mexico have been able to escape paying tens of billions of dollars in royalties that should be due the government. The U.S. government takes about 40 percent of the revenue produced on federal property, compared to an average of about 60-65 percent worldwide. The government is also paying more for this incentivized oil than if it just bought oil on the open market.
Some Democrats have promised to roll back the incentives once they take control of Congress next month. Read the Times article for the full details.
[Source: Edmund Andrews / New York Times]