Reid: No drilling proposals in debate over oil speculation

The Hill ^ | 07/14/08 | Manu Raju

[AmericaUnited]

“And what did we see off into the distance... Yes, it was pea size but still was distinctly discernible as a small set of gonads...

[autumnraine]

Why make oil companies spend time and money looking for oil when we know right where it is? That is just going to prolong the gas to our vehicles and increase the cost once it gets there.

[CedarDave]

Pete is retiring because of an incurable brain disease similar to Alzheimer’s. He has six-month’s left in his term and is becoming very feisty over this issue. See my post above about his likely replacement.

[coconutt2000]

It’s like satire... but it isn’t...

[popdonnelly]

The Democrats don’t represent the American people. They represent the environmental lobby. Vote accordingly. They should be kicked out of office.

[popdonnelly]

“This claim is so phony.”

But then, so is Reid.

[chatham]

Reid is just a plug in the colon of life.
He would turn America into a third world nation.

[ncpatriot]

Right on!

[zerosix]

Yes there are. At least some of the leaseholders (oil companies) have stated that all of their original startup dollars have been taken care of and monies made and to continue to drill would be for the "more expensive" crude that would NOT make pumping profitable.

One assumes that some crude is easier to get and therefore more profitable, while later on, crude becomes more and more expensive to get out of the ground.

Hope these answers are what you are looking for.

[vpintheak]

Idiots! Complete morons! If there was oil there worth exploiting, they would be doing so. Yeah Harry, the eeeeeevil oil companies are sitting on top of so much oil, they just don’t want to produce it because hey they aren’t in it for the profits.

[Cobra64]

“We want oil and gas companies to drill on the leases they’ve been given,” Reid said.

Marxist.

[Cobra64]

Has someone published a good article about how lame this particular talking point really is? i.e. something that actually describes the exploration leases in question, how much has been explored, and how much has been found? And what is really the potential for recoverable oil/gas?

I've read that at least one of these leases has a potential oil deposit worth recovering, but they can't get a drilling permit. Can someone point me to that, too?

I agree. I'd like to see it too. Lot of jabber-blabber, conjecturte and rumor about this with no substance or facts given.

[Cobra64]

Expect the GOP to NOT use this as a serious campaign issue.

Agreed. The GOP is hopeless. Overpaid bunch of jellyfish.

[Cobra64]

I keep seeing this argument. What’s the basis of it, and what has the oil companies’ response been?

The people who have the answers are too stupid to make it known.

[Extremely Extreme Extremist]

This is an issue given to the Republicans on a silver platter, a roasted pig with an apple core in its mouth. THERE SHOULD BE NO COMPROMISES - FORCE THE RATS TO ACCEPT DRILLING OR NO DEAL!!!

[gogeo]

Reid is incoherent; he’s using the same talking points as Boxer and Pelosi.

[vietvet67]

[Bubba Ho-Tep]

How much does the initial lease cost (I doubt they are "given")?

It's an auction, with the bidding starting at $2/acre. I can't find anything telling what the average winning bid is, though

Is there an annual fee?

$1.50/acre

Can they be returned if found to be unproductive or does the oil compnay have them for X number of years based on the original contract?

The term is ten years, but they revert to the BLM if the $1.50/acre isn't paid. They can't be renewed unless they've been drilled and are producing, in which case the government gets a royalty of 12.5%

There's also a bunch of bonds that have to be put up to cover clean-up, etc. before drilling can actually begin.

[Pistolshot]

Little Pete retires at the end of this term. He has nothing to lose.

[Sicon]

have a vote on a new plan for this huge, huge, reserve of gas and oil that belongs to none other than the people of the United States.

If all Republicans started talking (and actually thinking) like this, they'd be running the entire federal government on January 20th, 2009.

But of course, I'm not holding by breath...