US authorities to simplify oil and gas extraction in the West

The US Department of the Interior has proposed changes to regulations governing oil and gas extraction on federal lands. The new approach will allow companies to combine production from multiple sites using a single drilling pad. This will make the use of infrastructure more efficient and reduce costs. According to the department's estimates, annual savings could reach up to $1.8 billion.

Currently, such an approach is only permitted if ownership rights, royalty rates, and revenue distribution are identical. However, Reuters notes that the US West often lack this structure and this creates obstacles to efficient operations. The new rules aim to eliminate these barriers by simplifying production accounting and tax calculations for both the federal government and Native American tribes.

US Interior Secretary Doug Burgum stated that the old regulations are outdated and no longer align with modern extraction practices. According to him, the changes will improve natural resource management and ensure full collection of due payments. Reuters experts anticipate that the reforms will accelerate project launches and enhance overall transparency in hydrocarbon extraction on federal and tribal lands.