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  • Lack of Offshore Drilling Lease Sales Makes America's Debt Problem Worse

    Offshore oil and gas leases produced $10 billion in federal revenue only a few years ago. Today that number is zero, a consequence of the Obama administration’s reaction to last year’s Gulf of Mexico oil spill and the resulting moratorium on production in the region.

    Sen. David Vitter (R-LA) says it’s a huge mistake for the federal government to forgo the money — and the jobs that result from the offshore leases. Writing for Roll Call today, Vitter outlines the extent of the problem:

    Revenue can’t be generated from lease sales that don’t happen, and jobs can’t be created on leases that private industry can’t acquire. We’re in a severe fiscal crisis and we’re facing significant economic challenges related to job creation, yet the administration continues to neglect our offshore resources. …

    Not surprisingly, the financial scope of these bad policies reaches far beyond Washington, D.C. Under the Gulf of Mexico Energy Security Act, energy-producing states along the Gulf Coast receive a share of revenues from certain lease sales. But if there are no lease sales, then there are no revenues. This puts further strain on states that are already struggling to make ends meet.

    Earlier this year, Heritage and the National Center for Policy Analysis documented the anticipated loss of revenue from the lack of lease sales. The decline in new drilling permits also means less money from royalty payments by oil and gas companies.

    Heritage’s Nick Loris notes that increased production onshore and offshore would result in millions of jobs, an abundance of energy and much-needed revenue to cut into the debt.

    “Allowing access for exploration and creating an efficient regulatory process that allows energy projects to move forward in a timely manner will not only increase revenue through more royalties, leases, and rent; it will also create jobs and help lower energy prices in the process,” Loris writes. “These are sensible policy ideas with or without a debt crisis, but given the fiscal situation, this is a no-brainer.”

    Vitter, along with Rep. Jeff Landry (R-LA), met with Bureau of Safety and Environmental Enforcement Director Michael Bromwich today. The meeting didn’t result in much progress, however. Vitter bemoaned that the Obama officials offered “the same old company line.”

    In an effort to increase the pace of permitting in the Gulf, Vitter vowed to continue blocking Rebecca Wodder’s confirmation to serve as assistant secretary for Fish and Wildlife and Parks for the Department of Interior. Vitter wants to the agency to approve hundreds of drilling leases that will expire this year.

    Posted in Featured, Scribe [slideshow_deploy]

    6 Responses to Lack of Offshore Drilling Lease Sales Makes America's Debt Problem Worse

    1. I know some of you think drilling is evil and all, but it's a livelihood for many of us. This is just one of many reasons I'm not keen on our current president. He stated earlier this year that he wanted to secure more of Brazil's oil… "the United States wants to be a major customer, which can be a win-win for both our countries." I just can't wrap my mind around his thought process. He halts drilling (and job creation, revenue and self-reliance) in the Gulf of Mexico and then turns around and promises to buy from another country? Just who is he trying to create jobs for?

    2. Bobbie says:

      natural resources are not evil and drilling for them is necessary. The safety evaluation from the government safety board of children, passed 6 months before it blew and killed eleven people. Government and permits are the problem. To lift the moratorium without permits to proceed is unacceptable and pure ignorant. Non sense! Greater sacrifice on the people for the president's pleasing! It was never the American government's role to burden us out of commission. He claims a jobs plan that costs people their private sector jobs, yet he can increase employment, America's energy independence AND INCREASE revenue to the government, by one simple answer without increasing taxes. What's this man's acceptable excuse? there is NONE! HE'S HOLDING AMERICA BACK for his own special conflicts of interests.

    3. Lloyd Scallan says:

      Do we not yet understand why the BP spill was made much worse than it should have been? Obama's manipulation of federal agencies. His refusal to accept foreign help and equipment. The true reason the BOP failed to shut-in the well. All of this gave Obama license to stop lease sales, thus drilling operations, onshore and offshore, which lead to not only a $10 billion lease sales loss, but the thousands of jobs and the billions in tax dollars that they would generate. But more important is that many of the deep water rigs have left the Gulf to foreign waters for years. That will result in not having the equipment to drill when Obama is sent packing in 2012. Do we not realize this was nothing more that a deliberate attempt to collapse the overall economical system of this nation and making use more dependent on oil from
      third world countries, which of course means Obama get more of his "spread the wealth" ideology.

    4. RennyG says:

      I have a solution to solve the unemployment, debt and illegal situations in our country in SIX months.
      1. You ship all the illegals, even those with work permits, out/back to where ever, by first calss flights.
      2. 7-10 million jobs are open!!
      3. You lower the federal and state unemployment costs
      4. Federal debet reduced by eliminating 7 million people receiving subsidies.
      Being the generous country we are we will pay for the airfair!! Who needs over 500 congressman to try to figure this out over 3-4 years?????

    5. TimAz says:

      What better way to destroy a country then to wreck that countries ability to extract its own energy from its own natural resources. The question is. Will Americans give up before we can rebuild our country to it's former glory. There are those who's power and wealth depend on just that. I say we stick it out and continue removing all the cancerous growths that have taken hold within our govt. until we achieve victory. This may mean whole govt. agencies would have to be eliminated for our very survival. The cancer is betting that they have infiltrated our govt. enough that we cannot remove them fast enough to avoid the total devastation of all that made America great. Had enough yet?

    6. Dave says:

      If Obama wins this.next election, the middle east will br ecstatic and America will be relegated to a third class country. There will be riots in the streets, food shortages. and an unemployment rate never seen in this country before. Pray that God in his wisdom will remove this socialist regime Fremont office before it is too late.

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