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CBO report finds 'drill baby drill' in practice produces little revenue or oil (barf alert)
examiner ^ | august 18, 2012 | Lou Colagiovanni

Posted on 08/19/2012 9:44:13 AM PDT by lowbridge

It has been confirmed in a new report by the non-partisan Congressional Budget Office that the benefits of opening up and leasing protected federal landsforthe development of oil and natural gas are next to nothing. The estimated profit would be as little as $500 million a year which is only 0.7% of the total gross take of revenue of $150 billion that is expected to be generated over the next decade from leases already in place.

A favorite cheer of the Republican party has been "drill baby drill." Some would now say that talking point has been proven impotent.

The analyzed issue was the opening of ANWR, The Arctic National Wildlife Refuge, and off-shore drilling sites between 5 and 200 miles away from both coasts. Certain parts of the Outer Continental Shelf were also included in the analysis.

The United States allows individual corporations and private businesses to bid on leases for resource development already, with 70% of these areas already in use.

Once operational, which in some areas may take as long as 25 years, the report finds a revenue of $2 billion a year may be possible but not sustainable.

(Excerpt) Read more at examiner.com ...


TOPICS: Business/Economy; Culture/Society; News/Current Events
KEYWORDS: cbo; chi; oil
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1 posted on 08/19/2012 9:44:24 AM PDT by lowbridge
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To: lowbridge
A favorite cheer of the Republican party has been "drill baby drill." Some would now say that talking point has been proven impotent.

Is this the same CBO that told us that Obamacare would save us money? Yeah, I guess once they say something, it is proven, case closed. What a putz.

2 posted on 08/19/2012 9:48:20 AM PDT by fhayek
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To: lowbridge

The cbo report:

http://www.cbo.gov/publication/43527


3 posted on 08/19/2012 9:49:22 AM PDT by lowbridge (Joe Biden: "Look, the Taliban per se is not our enemy.")
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To: lowbridge
If this is all true, why when there is a problem in the Middle East the price of oil sky rockets? If supply increases don't lower prices, why not just eliminate all oil imports & eliminate the gas tax? After all the Moron who wrote this article said that our own oil supply, now proved to be as substantial as Saudi Arabia or more, has NO EFFECT on price OR revenue from gas taxes.

Absolute Financial and Economic Sub-Moronic Idiots.

4 posted on 08/19/2012 9:50:16 AM PDT by Jim from C-Town (The government is rarely benevolent, often malevolent and never benign!)
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To: lowbridge

CBO needs to take one of those chartered government planes to North Dakota and see how the real world actually works.


5 posted on 08/19/2012 9:51:40 AM PDT by ilgipper
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To: lowbridge

That’s why ND has 3% unemployment? Riiiiight.


6 posted on 08/19/2012 9:53:06 AM PDT by struggle (http://killthegovernment.wordpress.com/)
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To: lowbridge
Also, lets not forget that It could take 10 - 25 years to bring that oil on line. The perpetual lie has been used for the last thirty years that I can remember, probably longer. The same was said during the Iran Hostage crisis and the oil embargo!

Just sick to death of the idiocy?

7 posted on 08/19/2012 9:54:21 AM PDT by Jim from C-Town (The government is rarely benevolent, often malevolent and never benign!)
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To: struggle
‘That’s why ND has 3% unemployment?’

And the ability to eliminate ALL property taxes if desired!

8 posted on 08/19/2012 9:55:41 AM PDT by Jim from C-Town (The government is rarely benevolent, often malevolent and never benign!)
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To: struggle
Excepting for Military and Federal buildings and parklands, there should be...."0"....Federal Lands.

The Feds have usurped both lands and fees from the states.

9 posted on 08/19/2012 9:58:54 AM PDT by Sacajaweau
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To: lowbridge
Government Bureacrat A: Drilling for Oil could not possibly make a profit...

Government Bureacrat B: There is no way we could have known Solyndra would not make a profit...

10 posted on 08/19/2012 10:00:50 AM PDT by douginthearmy
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To: lowbridge

Somebody should tell that to the State of North Dakota. They are suffering under the delusion that they’re in a boom.


11 posted on 08/19/2012 10:02:26 AM PDT by katana (Just my opinions)
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To: lowbridge

The most important thing us how it effects the US Government, not jobs, or the oil that’s pumped out.


12 posted on 08/19/2012 10:05:37 AM PDT by DesertRhino (I was standing with a rifle, waiting for soviet paratroopers, but communists just ran for office.)
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To: lowbridge
Why don't the CBO folks compare that with North Dakota?

At least there, when you lease mineral rights, the owner doesn't yank your permits to drill.

When you tell people they can't drill somewhere every time there is a Democrat in the White House, they are going to look elsewhere to make a living.

13 posted on 08/19/2012 10:05:45 AM PDT by Smokin' Joe (How often God must weep at humans' folly. Stand fast. God knows what He is doing)
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To: lowbridge
From someone who worked 30 years in the oilfield (exploration and production), "FUCBO".
Nuff said.
14 posted on 08/19/2012 10:06:07 AM PDT by The Cajun (Sarah Palin, Mark Levin......Nuff said.)
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To: katana

http://www.startribune.com/business/166656556.html


15 posted on 08/19/2012 10:08:42 AM PDT by scooby321 (AMS)
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To: lowbridge

The CBO is about as non partisan as the Justice Department, the State Department, ATF , ICE, and the IRS.

Who are they kidding?


16 posted on 08/19/2012 10:09:21 AM PDT by Venturer
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To: lowbridge
“that the benefits of opening up and leasing protected federal landsforthe development of oil and natural gas are next to nothing. The estimated profit would be as little as $500 million a year which is only 0.7% of the total gross take of revenue of $150 billion that is expected to be generated over the next decade from leases already in place.”

If you define “benefits” as only what the Government collects in royalty taxes, and forget about the 150 billion in GDP and the high paying jobs that go with it.

Also don't forget that they are only scoring the Alaska national wildlife refuge.

Add in a stable domestic oil supply and any honest person can find more benefits that what they claim here.

17 posted on 08/19/2012 10:09:58 AM PDT by Beagle8U (Free Republic -- One stop shopping ....... It's the Conservative Super WalMart for news .)
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To: lowbridge
The author is correct that the ANWR royalty goes 90% to Alaska and 10% to the feds. But, if it is drilling on federal lands in other states, the royalty split is 50-50.

Certainly, some members of congress resent that Alaska gets 90% when their state gets only 50% and that plays a part into the question of opening ANWR up to drilling.

As for offshore, any new drilling will include royalty sharing with the state.

In GOMESA 2006, TX, LA, MS, and AL were given royalty sharing. Offshore drilling Virginia will be predicated on royalty sharing. Likewise N Carolina, Maryland, and Florida if and when those states get drilled offshore

18 posted on 08/19/2012 10:12:25 AM PDT by Ben Ficklin
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To: Sacajaweau
Not quite correct. The United States acquired vast territories that were then organized, surveyed and put up for sale.

As those lands and resources were sold, the area then fell within the state domain.

As you may have noticed, people didn't buy an awful lot of it!

Every now and then someone will claim that many Western states that were brought into the union didn't get the same deal as the older Eastern states.

Actually, Virginia and other states relinquished their Western land claims to their new federal government. It organized and surveyed those lands ~ then awarded them to Revolutionary War patent holders and to private individuals who bought vast tracts with the idea of developing them with roads and trails, and then selling them to new settlers.

The same thing was done with much of the Louisiana Territory, and it's at that point they discovered there's some stuff that you just can't get people to buy!

In fact, some of the later territories acquired directly from Spain and their successor, Mexico, and Russia, were of little use beyond testing nuclear warheads ~ not exactly one of your more regular civilian pursuits eh!

So, no, the new states were treated the same as the original states, and by the ones organized in the 1800s. It's just nobody bought stuff.

Currently were in a situation where technology is allowing us to make use of a lot of the more desolate areas ~ but even then the folks who want the oil aren't buying it ~ they want to rent it!

Not likely folks in the Eastern states would be happy with the federales just giving that land away to those Western states ~ not only wouldn't be prudent, I'd like my money back first ~ just give me a piece of the Bakken Formation ~ I'll be happy!

19 posted on 08/19/2012 10:16:18 AM PDT by muawiyah
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To: lowbridge

One of the things I’ve learned since Barack the Kenyan rose to power is that the CBO is made up of a bunch of incompetent buffoons.


20 posted on 08/19/2012 10:17:36 AM PDT by FlingWingFlyer (Had enough of the freaks running the show yet?)
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