Partly because this story doesn't fit preconceived liberal storylines and partly because the Democratic Convention is taking up all the oxygen in the mainstream media, you can expect this story to remain buried in your newspaper and be given little if any attention on cable news networks.
From page 17 of today's Financial Times, "US drillers to get $1bn court award" comes news of how federal government red tape often holds up oil companies for drilling on leases they've already sunk billions of dollars into (emphasis mine):
A US federal appeals court ruled yesterday that 11 oil and gas companies should receive more than $1bn awarded to them in 2006 after the government effectively changed the terms of leases to drill off the California coast.
The US Court of Appeals was upholding a 2006 ruling that the government had breached the leases when changes in federal law materially interfered with the companies' efforts to develop the oil and gas reserves off California.
The case points to the difficulties US oil and gas companies have developing oil and gas resources in the US.
Even when acreage is legally open to production, restrictive regulations about how properties can be developed have made it impossible for companies to follow through.
The US government had estimated the area contained more than 1bn barrels of oil equivalent.
Politicians have been critical of the industry for pushing for Senator John McCain's proposal to open up protected areas off the coast of Florida, saying they have yet to develop all the property currently open to production.
The industry can point to this case as a good example of why not all leased properties in the US are under development.
—Ken Shepherd is Managing Editor of NewsBusters
Editor at Large
Comments Policy
Doesn't fit the framework
August 26, 2008 - 17:25 ET by Indiana JoeAll evil flows from the wellhead of Big Oil. Therefore, this would get buried if the top story was "Dog Bites Man."
So, now the cost of stupid regulations has risen by $1 billion with one smack of the gavel. Yeah, we need more government "protection." Let's put them in charge of our health care, while we're at it.
That's the ticket.
OMG! My heart be
August 26, 2008 - 17:37 ET by bigtimerOMG!
My heart be still!
I cannot believe this....I knew nothing about this news!
Thank you Ken....
Not only the industry using this to hold up as a prime example with some of the problems they have had over the years adn years of BS...but the US Congress with the Republicans leading the way had better use this example! The dirty dems have been using this BS til you are sick of hearing the BS.
The msm is silent...gee, I wonder why!
"America isn't the problem...America is the solution." ~ Rush Limbaugh
Queen Nancy suffers from hoof-in-mouth disease again!
August 26, 2008 - 19:35 ET by goldenthroatTrue to form, instead of addressing the oil issue, she lowers herself to petty and asinine democratic psychobabble:
http://www.politico.com/blogs/thecrypt/0808/Pelosi_to_protesters_Can_we_drill_your_brains.html?showall
Amazing, isn't it? And this woman wonders why "her" congress is wallowing in the muck with a 9% approval rating!
"I think we're all bozos on this bus!" - Firesign Theatre
From the link: Majority
August 27, 2008 - 09:16 ET by pbanks7From the link:
Majority Leader Steny H. Hoyer swiped at the demonstrators, too, saying that “sophomoric chanting” won’t solve [this marks the end of all liberal protest chants for all time] the energy crisis and that “all thinking Americans [meaning ignorant people who get their talking points from Democrats and their lapdog media] know” — stressing the word "thinking" and looking at the crowd — that America doesn’t have a quarter of the word’s fossil fuels [because Democrats won't let us drill for it] yet uses a quarter of the world’s energy [good for us, it is a sign of our prosperity].
What an ultramaroon. What a ta-ra-ra-goondy-A.
MSM - shaping all the perceptions you need to believe, then confirming it with a poll.
Who Pays?
August 26, 2008 - 19:08 ET by CharliedocOK, I like the idea of the companies being reimbursed for the expenses incurred when the Government changed the rules, and made the properties no longer valuable.
But....
If the "Government" has to pay the $1B, doesn't that come out of our pockets from the taxes we pay?
One Billion Dollars Compensation to Oil Companies
August 26, 2008 - 20:23 ET by HuapakechiHere's a thought, rather than have the taxpayers foot the bill for bureucratic stupidity, why not have the same people that changed the rules in the middle of the game pay the compensation OUT OF THEIR OWN POCKETS.
Do you think it possible that such a consequence might make our "public servants" a bit more cautious about being so autocratic and capricious?
Rock and Roll
August 26, 2008 - 22:43 ET by general companyI am all for it, bout time they give us our $ back
"Television is a freak show" Bernie Goldberg
Many of us here have been
August 26, 2008 - 22:31 ET by RESTLESS 1Many of us here have been saying the the "not drilling" canard was incorrect, precisely because of the restrictions, beauracracy, and red tape these companies have to go through to drill on land they are leasing. Getting the leases is only 1/4 of the battle. All of the BS is the real reason they are not drilling as much as they could.
Of course all of the liberal trolls said we were full of it. Looks like, once again, we were right and they don't have a clue.
"This
liberal would be all about socialize -- uh, uh, would be about
basically taking over and the government running all of your companies."-Maxine Waters 2008
Most people have no Idea
August 26, 2008 - 22:59 ET by LCT688And I doubt if ANY in attendance at the Obamafest have the slightest idea of the complexity and expense involved in offshore drilling. never mind the cost of exploration drilling, once oil is found the production platform must be put in place. Its not just all the technology that can be seen sitting atop the platform but the all the equipment and infrastructure that must be put in place on the ocean floor. Once its put in place it must be monotored and maintained it the harshest environment on earth. Just putting an ROV (remotely operated vehicle) in the water that must be used to perform this work cost in excess of $10,000.00 an hour. Anyone interested and getting a glimse of just what is involved subsurface I would invite to visit oceaneering.com.
"A nation which can prefer disgrace to danger is prepared for a master and deserves one."
Alexander Hamilton
The Truth about oil leases and offshore drilling
August 27, 2008 - 10:13 ET by PopularTechI consistently hear the same propaganda about oil leases and no one ever responds to it. Federal law stipulates that an oil company must sink a producing well within 10 years or lose the lease.
Oil Leases on ‘68 Million Acres’ No Guarantee of Oil, Experts Say (CNSNews)
The facts about non-producing federal leases (PDF) (API)
The 'Idle' Oil Field Fallacy (The Wall Street Journal)
- 2.3% of the Outer Continental Shelf is under lease (WSJ)
- 0.46% of the Outer Continental Shelf is producing oil (WSJ)
- Federal law stipulates that an oil company must sink a producing well within 10 years or lose the lease (WSJ)
"Unfortunately, not all the leases contain oil and natural gas, and even those that do, may not contain enough to make them commercially viable. In many cases, the so-called "idle" leases are not idle at all; they are under geologic evaluation or in some stage of pre-production development and could be an important source of domestic supply in the not so distant future. Collectively, companies spend billions of dollars to obtain leases, pay rental fees each year to continue to hold them, and then pay to conduct surveys and other exploratory activity before production even starts. If a company does not produce from a well within a specified period set out during the lease term (usually five or 10 years depending on the area), it relinquishes the lease back to the government and loses all the money it invested." - American Petroleum Institute
Cuba Drills for Oil 60 Miles Off U.S. Coast (NewsMax)
Cuba Plans Offshore Wells Banned in U.S. Waters (The New York Times)
China, Cuba reported in Gulf oil partnership (CNN Money)
- 86 Billion barrels of oil are estimated in the U.S. Outer Continental Shelf (MMS)
- Over 4000 oil and natural gas platforms operate in U.S. waters with an outstanding environmental record (API)
- Horizontal and directional drilling make it possible for a single well to produce oil from much bigger areas (EIA)
- Today's production footprints are only about one-fourth the size of those 30 years ago (EIA)
- Platforms use sophisticated high-pressure valves that close automatically to prevent oil spills (API)
- Automatic fail-safe devices are installed in wells below sea level, protecting sea beds and sea life (API)
- Only 1% of all oil in the sea comes from drilling (EIA)
- 63% of all oil in the sea comes from natural seeps (EIA)
- Twice as much oil as the Exxon Valdez spill naturally seeps into the Gulf of Mexico every year (NASA)
Most Oil in Santa Barbara Channel Is Natural Seepage (The Wall Street Journal)
Scientists find that tons of oil seep into the Gulf of Mexico each year (NASA)
California’s Offshore Oil And Gas Platforms Serve As Marine Protected Areas (Science Daily)
Oil, Gas Seismic Work Not Affecting Gulf Sperm Whales, Study Shows (Science Daily)
Research Shows Little Effect From Arctic Offshore Oil Drilling; Study Reveals Thriving Oceanographic System (Science Daily)
Studies Show That Rockfish Thrive With Offshore Platforms As Their Home Base (Science Daily)
The Anti 'Man-Made' Global Warming Resource