There was supposed to be an oil and gas lease sale for the Gulf of Mexico tomorrow but Biden cancelled it. In a lease sale, a company pays for the right to explore a 3 mile by 3 mile block of ocean. If they don't find anything, they lose their money. If they find something, the government gets a royalty (percentage) of the oil and gas produced. It's a steady income stream to Uncle Sam.
Why should the average person care?
Well, the government gets a substantial portion of their budget from the offshore oil and gas industry. I don't know the current percentage, but it provides a few billion of income.
Why should you care?
The Biden administration is on a spending spree and that money has to come from somewhere. If they don't get income from offshore oil and gas, and the taxes paid by the people that the industry employs, they are going to come to you for that money. Stand by for more taxes.
2 comments:
Not surprised, and yes, taxes are coming, along with higher gas taxes at the pump... Probably doubled!!!
Utterly pathetic. Growing up in LA and leaving via Houma, I have seen exactly how those leases impact not just the Gulf communities, but the nation as a whole. Gas price increases have always been a priority for these (place inappropriate words here) people. Obama, part 3 is well underway.
Btw, hanging out on Tchoupitoulas this week - been missing home for a while. And try to get a non-local to pronounce that right.
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