I understand it is a losing argument. So how can we in America give our private companies/industry an advantage and encourage continued production of oil despite the supply and demand problem (low oil prices) that is making new exploration and production a losing economic proposition?
Normally I would say, let the market work. But we have our enemies on the ropes economically. Their economic engine isn't providing the revenue it once did.
“So how can we in America give our private companies/industry an advantage and encourage continued production of oil despite the supply and demand problem (low oil prices) that is making new exploration and production a losing economic proposition?”
a couple of thoughts:
1. I have seen estimates that up to 20-25% of the cost to produce oil is due to environmental causes. Although we must be good stewards, a lot of this is just ridiculous, like doing some required environmenal studies that does nothing but subsidize some university’s environmenal program. Getting rid of the fluff would be a large drop in costs to companies.
2. Opening up huge areas that are currently off-limits to companies. Do you know that the coast of California has huge fertile oil provinces? But companies are not allowed to drill for them or set new platforms. Example, Exxon drilled this well http://news.exxonmobil.com/press-release/exxonmobil-sets-drilling-records not because they wanted to, but because they were required to in order to reach oil that otherwise been developed using new platforms.
Many of these areas would compete very favorably, perhaps better, to existing fields in terms of value effectiveness at low prices
We need to domestically focus on the obstruction government makes in the oil and gas industry.
Adding more government involvement will only make the problems worse. Do not look for the government to select winners and losers in private industry.
Keep oil and gas on a level playing field with all other business and industry. Have them pay royalties, but quit with the special additional taxes and burdensome regulations.