Monday, January 17, 2011

Gulf Oil Drilling -#2563 - Anti-Driling Policies Costing Federal Government Billions in Lost Revenue - Heritage Foundation

Billions of dollars in potential oil revenue that could help close the federal deficit is being lost as a result of President Obama’s anti-drilling agenda. Production in the Gulf of Mexico — which normally accounts for about 30 percent of all U.S. production — is expected to drop this year by 220,000 barrels per day, according to projections from the U.S. Energy Information Administration. With oil currently at $90 a barrel and the royalty rate at 18.75 percent, that equals $3.7 million in lost revenue each day. If the agency projections hold over the course of the year, the federal government would lose more than $1.35 billion from Gulf royalty payments this year. The number grows even larger when coupled with a lack of Gulf lease sales and fewer rental payments. Those three components — royalties, leases and rent — make up a sizeable amount of government revenue.  Read more.........

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