Thursday, March 21, 2013

Gulf of Mexico Lease Sale

The Yankee Government held a lease sale yesterday for offshore tracts in the Gulf of Mexico. Obama was able to add $1.2 Billion, with a "B", to the government cash register. That's in one day. A total of 52 oil companies submitted 407 bids on 320 leases. The high bidders were:

ExxonMobil: 7 high bids totalling $220 million
Shell: 38 high bids totalling $140 million
BHP Biliton: 24 high bids totalling $107 million

Remember, this is money the oil industry is willing pay just for permission to drill. There is no promise of success, no government subsidies and no bailouts. If they find oil or gas, they will then have to fund the development and pay the Yankee Government a royalty for everything they produce. If they get a dry hole, the money is gone.

Can anyone show me a "green energy" company willing to take on those kinds of risks? Well, T Boone did and he lost his shirt.....but he has plenty of shirts he bought with oil money.

Now, think how much more money Obama could get to fund his socialist schemes if he just opened up drilling!


Old NFO said...

How about Solyndra... Oh... the Government GAVE them money... never mind...

Peripatetic Engineer said...

When the libs complain that oil companies do not pay taxes, they neglect the non refundable lease bonuses.