Obama’s $10 oil fee could be DOA

By The Bakken Magazine Staff | March 02, 2016

With the release of his proposed fiscal year 2017 budget, U.S. President Barack Obama drew a wide range of criticism from pro-oil developers for his idea related to every barrel of crude consumed in the country.

Through his proposal, Obama’s administration would levy a $10 per barrel fee on imported oil to fund clean transportation projects and infrastructure. “By placing a fee on oil, the president’s plan creates a clear incentive for private sector innovation to reduce our reliance on oil and at the same time invests in clean energy technologies that will power our future,” the administration said. Under the proposed plan, the $10 tax would be applied to imported oil but not to U.S. produced oil set for export. The point along the production, refining and delivery chain where the fee would be applied has not been clarified to date. Comments from Congress show the idea for the $10 fee on each barrel of oil may never come to fruition.