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New oil leases on Federal/U S A lands

Original post made by Rick, Charleston Gardens, on Aug 12, 2008

If we were to sell new oil leases here's what I would like to see:
Any company bidding would have to give up or give back any leases they have that are not producing oil now.

Any co. that has had leases that sold them to someone else would not be elidgble to bid if those lands/wells are not producing oil now.

The above are important since the oil companies own millions of acres of land that they are not trying to produce oil from them. They are simply banked assets to keep on their books.

Next: All oil produced must be sold to U.S. Consumers. The shipping, refining and sellers to retail users would be by other, independant shippers, refiners and stations.

The selling price of the oil from the well to the consumers would be based on a cost of producing, shipping ,refining and retailing and only a reasonable mark up would be allowed. Say 5% to 8%. World prices would not be taken into account.

Failing to produce oil in a timely manner, a few years, would cancel the lease.

No selling of leases would be allowed. No banking of leases or oil would be allowed.

No manipulation of this process would be allowed. Ownerships, management of each process, step must be independant of the other.

These are just some of my "Off-The-Cuff" ideas. I would hope that Obama would pick them up.

Comments (4)

 +   Like this comment
Posted by Oil Man
a resident of Palo Alto Hills
on Aug 13, 2008 at 12:52 am

Here is a wild cat oil tip of the day, 1.] not all wells produce at the same rate 2.] not all wells produce a crude product that a motor fuel refiner wants or needs. 2.} Oil has nothing to do with dinosaurs and it will be in abundance for hundreds of thousands of years. Web Link

And just one more thing, Obama is an idiot.



 +   Like this comment
Posted by Walter E. Wallis
a resident of Midtown
on Aug 13, 2008 at 7:05 am

How about the cost of a CD being the three cents for material and the 5 seconds handling time? Forget the time and talent that went into producing the music or software on the CD. Sorry, Jobs. Sorry Streisand.


 +   Like this comment
Posted by oilpatch
a resident of another community
on Aug 13, 2008 at 3:07 pm

Oil Man has the wrong story for a reason he may never suspect if he only reads the establishment petroleum press. A postmodern explanation for the origin of his oil has been conclusively proposed, which I will summarize in its essentials here. There are no known Web links related to this theory, and I am taking a professional risk to publish this much.

Oil and bituminous hydrocarbons were formed in intergalactic space soon after the big bang and they are delivered to earth by random asteroids to which giant hydrocarbon deposits have become gravitationally bound. Evidence for this fact comes from well known giant asteroid strikes, notably the Chixulub event which killed the dinosaurs and sowed vast oil deposits in Mexico, Venezuela, Gulf of Mexico, Texas and Oklahoma. Its temporal coincidence with the end of the dinosaur era at first misled scientists to formulate the premodern biogenic origins of oil hypothesis. A second notable asteroid event near Manson, Iowa created the huge hydrocarbon reservoirs in Alberta and the Bakken deposits in the Dakotas. The asteroid encounter associated with the gargantuan Mideast and Russian deposits remain undiscovered, probably having happened in deep water where it may never be found.

It is an understatement to say these findings are highly controversial among the science establishment which has attached itself to the biogenic and modern Russian-Ukrainian theories. For example NASA has never published photos of oil clouds surrounding the asteroids it has visited, which is definitive proof of this culture of denial. I am however confident that a properly oriented unbiased evaluation will prove the factuality of these postmodern views, and that another abundance of oil will happen when another major asteroid strikes the earth. Perhaps NASA could find and guide suitable asteroids to earth as more oil is needed, and oil will be a renewable resource at will.


 +   Like this comment
Posted by Anonymous
a resident of Another Palo Alto neighborhood
on Aug 13, 2008 at 11:13 pm

Back on topic, a condition for bidding on new oil leases should be that bidders should give up the deep-water tax breaks (to spur exploration when oil was under $35 per barrel) and which were erroneously added to their leases by the Bush Administration.


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