Drill, Drill, Drill
The National Taxpayers Union recently sent comments to the U.S. government’s Minerals Management Service regarding MMS’s 2010-2015 plan for oil and gas leasing in the outer continental shelf. [The public comment period closed September 21, 2009, but a phone call to the Program Manager’s office today indicated they will still accept comments although they will not be part of the official record.]
Some of the issues addressed by NTU in their letter to MMS included:
“Many of the factors leading to current energy prices are outside the control of the federal government. However, the extent to which we allow domestic companies to explore for energy is very much within Washington’s control. Ending these costly restrictions would have the benefit of providing a steady stream of oil supply, thereby helping to calm market volatility.
“Domestic energy exploration is possible without creating major environmental hazards. The nation’s offshore areas where there currently is not a drilling moratorium, such as portions of the Gulf of Mexico, did not experience any oil spills or significant environmental problems after being struck by Hurricane Katrina, a Category 5 storm.
“In addition, allowing for responsible exploration would help to lower taxes and reduce budget deficits. This would occur by producing an influx of tax revenue from additional lease sales and royalties, as well as from income and excise taxes.
“The Congressional Research Service recently estimated the potential federal revenue from Arctic National Wildlife Refuge (ANWR) oil development at $191 billion over 30 years – roughly $18.36 per barrel, based on projections of recoverable reserves. Applying that formula to the 107 billion-plus barrels of recoverable oil that federal agencies estimate is in ANWR, in the nearby National Petroleum Reserve, and offshore tells us that sensible drilling could yield nearly $2 trillion in overall revenue over 30 years, or an average of about $65.5 billion per year. That amounts to sufficient money, for example, to completely repeal the Alternative Minimum Tax without boosting budget deficits.”
ACTA members and Growls readers are urged to use the MMS link above and comment on the proposed 2010-2015 leasing plan. Our apologies for just noticing the NTU letter, but we thank NTU for commenting on the MMS leasing plan. Note also that one issue not addressed in NTU's letter is the jobs that would be generated from more drilling for oil and gas.