Why so soft on offshore drilling? | 52 comments (52 topical, 0 hidden)
Doesn't matter (none / 0)

The oil companies are bitching and moaning about what they have to pay now. Do you really think they are going to drill anywhere with a 25% skim off the top?

Ken knows that and that was the BS I was calling out. 

by z1p101 on 08/04/2008 02:36:05 AM EST

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that's because (none / 0)
they don't have any competition. Currently this resource is managed for the benefit of the oil companies exclusively.

by hazmat on 08/04/2008 11:29:01 AM EST

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Yes, they absolutely will (none / 0)

Or at least someone will.

Canada has no problem getting takers on its 40% rate.

And since these are MNCs who are mostly HQed for tax purposes outside the US and just sell to the highest bidder on the world market I see no reason why we should give an "American" company and competitive advantage.

by ProfRich on 08/04/2008 11:30:46 AM EST

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Good lord Rich (none / 0)

Please don't tell me you just used the "it works in Canada so it will work here" line. I apologize but I am going to have to use the Bobo tone here.

What planet do you friggin liberals live on that you just don't realize that that the "it works in Canada" line gets 0 traction here and when are you going to get your heads out of your collective asses. There will be no 25% royalty payments but if there were this is how it plays out.

The sweetest contracts will be given to the companies with the most lobby muscle and those
companies who get the contracts of course will promise to work them in good faith. However, with a little market manipulation on their part the price of oil mysteriously drops $20 to $30 dollars a barrel. Not enough to keep the American people from being pissed off at the pump but just enough for those drilling companies to say "it is not in our financial interest to drill now because of the recent drop in oil prices and the 25% "Tax".

The Republicans suggest a lift on the %25 royalty for the "good of the people"  and start yelling once again about how the Democrats are blocking economic growth and energy independence by creating this hardship on the "evil energy" companies who just want to make a profit the "good ole American way" but The Democrats insisting on keeping this %25 "re distribution of wealth" is blocking progress and job creation for hard working American citizens.

The Democrats of course counter with the oil companies will still be making money and Canada does %40 and the caribou and..... And take a look at where their interests lie also.

In the end the %25 royalty disappears. Republicans get some political miles out of it to make up for their constant fuck ups elsewhere, oil companies still don't drill unless they have cited a mother load but by that time Americans attention will be on the next dog and pony show.

Does any of this sound familiar?Have you ever seen any of this before? And please don't give me this "we will implement a use it or loose it" line.

That is the way the world works Rich. 

by z1p101 on 08/05/2008 03:33:18 AM EST

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Slow down, Zip (none / 0)

The only thing I said is that a 40% premium will not stop the oil companies (same ones drilling in Canada as down here) from drilling oil.

That is inarguable.

Whether or not the Dems are too chickenshit to stand up for it is a different issue entirely.

Thanks the baseless rant against something you assumed I was saying though!

by ProfRich on 08/05/2008 06:49:16 AM EST

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LOL (none / 0)

Sorry man. I was just using my particular sense of humor to try to drive a point home. I using Bobo's tone would have made that obvious but...

Anyway, anyone who has been paying attention to what has been going on over the last 20 years quickly realizes there will be no reasonable royalties  paid on US oil drilling so it is not even worth talking about.

by z1p101 on 08/05/2008 11:03:27 AM EST

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OK Ken (none / 0)

What are you talking about?

"Obama is now born-again pro-drilling. He wants to drill everywhere. One more zippy prediction bites the dust..."

When and where have I ever made any statements about Obama and his stance on oil drilling?

"..."Bush will be impeached", and on and on and on."

No, I have never said that. Actually you can find multiple posts by me stating that Bush will not be impeached and explaining why.

"...and "Bush will leave Iraq""

never said that either.

"...One more zippy prediction bites the dust, along with "the surge will divide republicans..."

I outlined an either/or scenario.  Republicans decided to back Bush and now they are loosing in Mississippi. Trust me, I'm thrilled about it. Don't make me pull quotes and outline how much damage backing Bush has done to the Republican party just like I talked about.

by z1p101 on 08/05/2008 10:42:08 PM EST

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Oh (none / 0)

So I guess I should start searching eBay for some good used drilling equipment just in case that happens. Or maybe Mr Peabody is currently not using his way back machine.

What the frig is it with you and all these what if's and ridiculous hypotheticals? Do you really believe Exxon Mobil is ever going to allow you to park your rusty little rig right next to theirs?

Once again Ken, spare us with this bull shit. 

by z1p101 on 08/05/2008 11:15:36 AM EST

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I fogot one thing (none / 0)
The oil companies now get to work that mother load without the %25 skim off the top.

by z1p101 on 08/05/2008 04:23:27 AM EST

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Why so soft on offshore drilling? | 52 comments (52 topical, 0 hidden)