Drill, Baby, Drill - Government Revenue Gains In Opening Up Drilling

August 9th, 2012
in econ_news

BOE (barrel of oil equivalent) is a measure of the approximate amount of energy released by burning one barrel (42 U.S. gallons) of crude oil; 1,000 cubic feet of natural gas = 0.178 BOE.

Follow up:

In the above graphic - The areas of the Outer Continental Shelf (OCS) referenced here are the submerged lands generally between 3 miles and 200 miles from the Atlantic and Pacific coasts of the continental United States, the coast of Alaska, and the coast of the Gulf of Mexico. ANWR is the Arctic National Wildlife Refuge in Alaska.

The uncertainty surrounding whether and when new offshore areas will be developed in  he future makes it difficult to estimate the budgetary impact of accelerating leasing. If leasing started sooner than currently assumed by EIA—for example, by 2017 instead of 2023 for the California and Florida OCS—the net increase in royalties could range from an average of tens of millions dollars a year to a few hundred million dollars a year over the 2023–2035 period, depending on whether policymakers in California allowed the development of new offshore leases—which is very uncertain.24 Such gains would diminish over time and eventually turn negative because the resources in those areas would be depleted sooner. Similarly, collecting bonus payments earlier could reduce the amount received during the 2023–2035 period, which could offset some of the estimated increase in royalties over that period.

read the full source report from the CBO (14 pages)


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1 comment

  1. ghenghis khan says :

    so let's just start adding zero to "the price thingy" and PRESTO! WE'RE RICH! PROBLEM SOLVED!

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