(Committee On Natural Resources) - In an effort to compel oil and gas companies to produce on the 68 million acres of federal lands, both onshore and offshore, that are leased but sitting idle, House Natural Resources Committee Chairman Nick J. Rahall (D-WV) today introduced legislation that gives Big Oil one option - either "use it or lose it."
Yup, still going with outdated trash from the democrats. All federal leases have a time limit. This means that every single oil lease on federal land has a drop dead date. Your congressman is making political points with his legislation of use it or lose it because it is already written in the lease. I was a purchasing agent for the Federal Government for two years while recuperating from some minor injuries. I had to learn the Federal Acquisition Regulations or (FAR) since I have been out of that area of federal work for 20 + years and I know this regulation don’t you think the Congress should know the laws when leasing federal property? Are you ashamed that they took you in so easily? Try Google since it has its own website, learn how you are being used like a 2 dollar whore.
"Big Oil, as many Americans already suspect, are perfectly fine with high gasoline prices at the pump while they hold back domestic production on federal leases and enjoy world record profits. I am calling them on the carpet. I am calling their bluff. We are not going to continue to allow them to speculate and profiteer with public resources to the detriment of the American people," Rahall said.
He is lying through his tooth. It can take up to ten years to drill for the oil once the lease has been made. They have to survey the land, and if they suspect there is oil then they have to do and environmental impact study before they can get a permit to put up a test well, if the test well shows that drilling may be profitable then they have to do another environmental impact statement and hope it is not challenged by the tree huggers, then they have to request another permit after all court challenges are resolved. If the Congress approves then they can drill for oil. They have to do all of this before the lease runs out or they have to start all over again and at the same time compete with other oil companies that might have noticed the lease has expired and try to out bid the first company because all the hard work was already done.
So with all the money spent you honestly think they are just letting the land sit idol in order to give us high prices for gas? You have been rolled my friend.
The 68 million acres of leased but inactive federal land have the potential to produce an additional 4.8 million barrels of oil and 44.7 billion cubic feet of natural gas each day. This would nearly double total U.S. oil production, and increase natural gas production by 75 percent. It would also cut U.S. oil imports by more than one-third, reducing America's dependency on foreign oil.
The key word is potential, none of it has been discovered, it could be there but we don’t know for sure until a test well has been sunk. Every person in the womb has the potential of being the next Albert Einstein, or the next Adolf Hitler. Until the child is born and reaches his full potential we won’t know for sure, most fall in the middle. The same is true with the oil leases. It looks good and has potential for a large amount of oil but until it has been tested we don’t know for sure. Getting the permits takes years so the land looks as if no one is doing anything but people have been out there doing their surveys, and finding potential areas to drill. This is the game that is being played on you. Just because there is not a rig pumping oil, you are told they are sitting on the land and not doing anything. When you see an oil rig you have seen the end of the process not the beginning.
How about this one in the Dakotas there was a find in the 1950’s of ten billion barrels of oil. the problem was that at the time of its discovery it would cost 25 dollars a barrel to pull out of the ground. Back then they could buy oil at 8 dollars a barrel. With new technology they can now get that oil at 20 dollars a barrel. The lease expired 30 years ago and Congress has not permitted another lease for that land. How about off the coast of Santa Barbra California, 400 million barrels of oil sit there, the wells have been capped because the state and federal governments banned drilling there. All that is required is for Congress to lift the ban and they can reopen the wells that are already there. But it seems your buddies in Congress don’t want to even open up proven wells, proven reserves, all they have to do is update the equipment and start pumping the oil. last word I heard on that was last week and it will take a year to start pumping again.
Great strategy your buddies have, drill where there is no oil or no proven oil but don’t drill where we know there is oil. you have been lied to, big time!
The Rahall bill would force oil and gas companies to either produce or give up federal onshore and offshore leases they are stockpiling by barring the companies from obtaining any more leases unless they can demonstrate that they are producing oil and gas, or are diligently developing the leases they already hold, during the initial term of the leases.
So the federal ban on offshore drilling means nothing? Congress has to lift that ban before they can pump that oil again. Only in a few states is it currently allowed and those places are being worked. You are so gullible!
Coal companies, which are issued leases for 20-year terms, are required, as a result of the Federal Coal Leasing Amendments Act of 1976 to show that they are diligently developing their leases during the initial lease term. The law was enacted in an effort to end rampant speculation on federal coal as a result of the energy crises of the 1970's.
Have you seen all the congressional bans on coal usage? Let me guess, your democrat buddies that want oil companies to drill it or lose it came up with that one too right?
Instead of new legislation to force oil companies to do what federal law already demands why don’t they lift the bans on oil drilling where we have proven reserves? It would take less time and we would actually see some results from it.
Oil and gas companies, however, are not required to demonstrate diligent development. Because of this, oil and gas companies have been allowed to stockpile leases in a non-producing status, while leaving millions of acres of leased land untouched. The Rahall legislation directs the Secretary of the Interior to define what constitutes diligent development for oil and gas leases.
Sorry having a son that works for an oil company makes it hard to believe that this is happening. They have 10 to 20 years to produce or they lose the rights to the lease. That has been established before you were born. Had you bothered to check that out you would not have swallowed their lies hook, line, sinker, the boat and half the water it displaced.
profit margin is defined as: “A ratio of profitability calculated as net income divided by revenues, or net profits divided by sales. It measures how much out of every dollar of sales a company actually keeps in earnings… Profit margin is displayed as a percentage; a 20% profit margin, for example, means the company has a net income of $0.20 for each dollar of sales.”
So let’s look at some oil company profit margins:
Exxon Mobile: 11.65%
Chevron: 9.49%
BP: 8.09%
So let’s see here. Exxon, the highest on the list, makes 11.65 cents on the dollar.
Federal law states 9.9 cents per gallon as profit. If they broke that law do you think the democrats in the Congress would be silent about it? That is not a profit ratio it is a hard number. Now they are allowed to recoup the cost of the barrel of oil but that is the cost of doing business not profit. So yes they may get 11 cents on the dollar but 9.9 cents is profit. They make any more than that the government can shut them down. You are complaining because they show a profit of 11.65 cents on the dollar when the federal government makes 68 cents on the dollar in taxes. Add to that the state and local taxes tacked on. Give me a break, smell what you are shoveling.