One Big Beautiful Bill

Key Opportunities for Operators

• Expanded Leasing Access: With more federal onshore and offshore lease sales required, operators may see new opportunities for exploration and development.
• Reduced Royalty Rates: Lower federal royalty rates and restored tax deductions for drilling costs could improve margins on qualifying projects.
• Streamlined Permitting: Faster, more predictable permit timelines could shorten the path from planning to production.
• Enhanced Carbon Capture Incentives: Strengthened credits for carbon capture — particularly when used in enhanced oil recovery — could make these projects more attractive to pursue.

Why This Matters for Your Business
While OBBB is favorable for oil and gas producers overall, it introduces new layers of complexity:

• Accounting Impacts: Changes to royalty rates, tax treatment of drilling costs, and incentives for carbon capture directly affect how companies record expenses, revenues, and deductions.
• Regulatory Compliance: Expanded leasing opportunities and streamlined permitting mean more projects could come online — but each still requires accurate and timely reporting to remain in compliance.
• Strategic Planning: With potential for faster project timelines and new incentive structures, operators will need a clear picture of how these changes affect long-term financial and operational planning.