There is talk of royalty relief for oilers in the US. The...

There is talk of royalty relief for oilers in the US. The question is, will Otto benefit from any of this? Federal royalties are only on on federal land / areas:

- Lightning....no. Private land.
- GoM SM71...YES. Federal area.
- GoM GC....YES . Federal area.

"Unlike land (which can be owned by states, local governments, corporations, or private individuals), the waters and submerged lands of the Outer Continental Shelf are entirely administered by the federal government. This means that all offshore drilling and renewable energy generation takes place in federal waters."
https://revenuedata.doi.gov/explore/offshore-gulf/

Current royalty rates on GoM is 18.75%...this could be a Company saver even if just temporary for a year or so. It's worth noting the the energy industry has not had any relief yet....while boeing et al have had $100's of billions committed to them. This could be a good time to be getting into a US oiler that has been beaten down 90% and will be undersubscribed in it's right issue...

"The list of options for Trump are expected to contain measures that Republican lawmakers recommended to Interior Secretary David Bernhardt this week, including suspending royalty payments for oil produced on federal lands and the extension of federal lease terms. It may also include suspending the Jones Act, which prevents ships that are foreign-owned, -flagged or -crewed from transporting products between U.S. ports."

https://www.politico.com/news/2020/04/02/trump-calls-on-russia-and-saudi-arabia-to-cut-oil-production-161368