Bologna Does Fear the Grinder
The next time David Bologna Boy Paulson yammers about the 68 million acres of leases Big Oil owns but is not exploring, you can slice up his sandwich of an argument with these facts:
o Independent, American oil and gas businesses – not BIG OIL – develop 90 percent of the nation’s oil and gas wells.
o There are 5,000 independent oil and natural gas companies in the U.S. with, on average, 12 employees.
o These independent businesses also hold the majority of the nation’s federal oil and natural gas leases onshore and offshore.
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o American oil and natural gas companies are developing more oil and gas wells than at any other time since 1985.
o There are many reasons why federal oil and natural gas leases aren’t currently producing – including the need for exploration, federal permits, environmental studies, financing — or possibly there is no oil and gas to be found in commercial quantities!
o Developing leases requires many steps both technical and procedural. Technically, areas must be analyzed and exploratory wells drilled. Procedurally, the federal permitting process must be navigated.
o Protests and lawsuits – UP 700 PERCENT from 2001 to 2007 – also delay development. [Maybe Paulson can tell Brad Heavner to do something about this!]
o “Use it or Lose it” – the Democratic leadership’s proposal to not allow any new areas for oil and gas exploration current leases are developed or risk losing those leases – is already the law.
o Prior to 1992, the lease term was 5 years; the Energy Policy Act of 1992 (under a Democrat House) extended it to 10 years.
o For Federal offshore oil and gas leases, an oil company must produce energy between 5 to 10 years (in the government’s discretion). This is from the Outer Continental Shelf Lands Act. (Source: 43 U.S.C. 1337(b)).
o Most of the drilling on Federal leases has been for natural gas, and natural gas production was up – way up, last year, and so was demand.
o In fact, industry is producing more gas under these leases but they cannot keep up with demand because Democrats and their radical environmental allies will not allow the leasing of new areas.
o 97 percent of Federal offshore areas are not leased.
o 92 percent of Federal onshore areas are not leased.
Of course, Paulson ducks any serious debate, just look at his comments. He is a living answer to
William F. Buckley’s rhetorical question: Why does bologna fear the grinder?
h/t MarkTapscott
