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Pastimes : Let's Talk About Our Feelings!!! -- Ignore unavailable to you. Want to Upgrade?

To: cosmicforce who wrote (85820)	8/20/2000 9:41:58 AM
From: average joe	Read Replies (2) \| Respond to of 108807

You replace depleted reserves by exploring for more oil or deeper zones. Oil sands and oil shale are future sources of oil but come with much higher refining costs attached. The only chance small producers have for making a profit are when oil is trading at higher prices. The concept that oil companies are rolling in money is patently false. The only party in the lease arrangement that rolls in money is the lease holder who has an over riding royalty. Not all mineral rights are vested in the state. law.indiana.edu As far as licking the bowl goes we have seen new deeper zones of production opened up on leases where the shallow zone is depleted. Horizontal drilling gives those old zones a new profitable boost. U.S. Oil companies have historically had a tendency to over produce and keep the price down and not the other way around. The Texas Railroad Commission regulated and enforced proration in east Texas. That was a victory to the lease owner and holder. A very small slice of the oil price pie goes to the producer most is tax. The government grants a lease and gets a GORR on the production. The government then taxes the sale of the product to you the consumer. Not to mention income taxes and corporate taxes for the people and products of the refinery. Who else should be taxed??? I think you have a problem with the concept of a lease being granted by the government to an oil company. That system has worked rather well over the past 100 or so years and is fundamental to the system and will never change. If you want to see real waste go somewhere where production is vested in the state like in Romania and the Ukraine. North American producers are the most responsible in the entire world.