Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Politics for Pros- moderated -- Ignore unavailable to you. Want to Upgrade?

To: Bill who wrote (254796)	6/18/2008 12:42:39 PM
From: Brumar89	Respond to of 793790

The federal govt. owns beyond states coastal waters -(usually about 3 miles except FL & TX which is 10 miles more or less). The US government does get royalties (usually around 16% or 18% of revenue) and lease payments on federal leases similar to a private land-owner. A recent round of lease bidding in the GOM brought in around $3.7B in bids. With oil prices staying above $100 a barrel, energy companies on Wednesday put down a record $3.67 billion in winning bids for the right to drill on federal leases off the coasts of Louisiana, Mississippi and Alabama. houmatoday.com interior.gov Presumably, the US could use royalty and other lease income to offset gasoline prices if the legislators were to so decide. I don't know if that would be wise. Many nations which are net exporters have national oil companies which are required to sell at low prices in their home market. Other countries, usually developing ones, provide government subsidies to keep gasoline prices low. China is an example. Some countries like Malaysia and India are raising their subsidized prices because its costing them too much.