According to The Heritage Foundation, Democrat enviromentalcase policies are costing the government BILLIONS in lost revenues that could help close the deficit gap.
With oil currently at $90 a barrel and the royalty rate at 18.75 percent, that equals $3.7 million in lost revenue every day.
But it is much worse over the long-haul, especially if oil prices stay high, which is almost a certainty.
If Liberals would get out of the way and the federal government opened access to exploration and production in areas currently closed to development such as the eastern Gulf of Mexico, portions of the Rocky Mountains, ANWR, and the Atlantic and Pacific coasts, the increased access to those areas would bring $150 billion into federal coffers by 2025.
But you know they won’t, because this is the new normal.
Meanwhile, we have countries like China drilling off of Florida and in the Gulf of Mexico. America is the only country in the world that is so brain-dead stupid as to purposefully ban the safe harvesting of its own resources.
Billions of dollars in potential oil revenue that could help close the federal deficit is being lost as a result of President Obama’s anti-drilling agenda.
Production in the Gulf of Mexico — which normally accounts for about 30 percent of all U.S. production — is expected to drop this year by 220,000 barrels per day, according to projections from the U.S. Energy Information Administration.
With oil currently at $90 a barrel and the royalty rate at 18.75 percent, that equals $3.7 million in lost revenue each day.
If the agency projections hold over the course of the year, the federal government would lose more than $1.35 billion from Gulf royalty payments this year.
The number grows even larger when coupled with a lack of Gulf lease sales and fewer rental payments. Those three components — royalties, leases and rent — make up a sizeable amount of government revenue.
[…] A report from the economic forecasting firm IHS Global Insight estimated that federal, state and local taxes related to the Gulf, combined with royalty payments, totaled $19 billion in 2009.
Royalties, bonus and rent payments made up more than $6 billion of that number. That pot of money could go a long way toward deficit reduction. And that’s from the Gulf alone.
Significant additional revenues would be generated if the federal government opened access to exploration and production in areas currently closed to development such as the eastern Gulf of Mexico, portions of the Rocky Mountains, ANWR, and the Atlantic and Pacific coasts.
A recent study conducted by Wood Mackenzie for the American Petroleum Institute estimated that increased access to those areas would bring $150 billion into federal coffers by 2025.