Tuesday, October 4, 2011

a lovely ballet ensues, so full of form and color

in a letter to Ken Salazar, Senator David Vitter (R-LA) warned of a severe revenue falloff attached to declining energy lease sales... $10,000,000,000 per year falloff... but the President promised to increase oil production in the U.S.

[W]e should increase safe and responsible oil production here at home. Last year, America’s oil production reached its highest level since 2003. But I believe that we should expand oil production in America – even as we increase safety and environmental standards.
-President Barack Obama - May 14, 2011

is this what happened?... let's ask someone close to the problem... say, a Congressman from a Gulf state... like Sen. David Vitter.

September 28, 2011

The Honorable Ken Salazar
Secretary, Department of Interior
1849 C St., NW
Washington, DC 20240

Director Michael Bromwich
Director, Bureau of Ocean Energy Management Regulation and Enforcement
1849 C St., NW
Washington, DC 20240

Dear Secretary Salazar and Director Bromwich:

We would like to bring to your attention the steep decrease in revenue from bonus bids that result from zero Outer Continental Shelf lease sales in FY2011. In FY2008, revenue from bonus bids on offshore leases was approximately $10 billion. For FY2011, the amount is $0.

Our country faces a severe fiscal crisis as well as significant economic challenges related to private industry job creation. Revenue cannot be generated from lease sales that do not occur, and jobs cannot be created on leases that private industry cannot acquire.

Revenue from the offshore lease sale program has dropped from $10 billion to nothing in just three years. As a result, the revenue that Gulf States can anticipate from their share of bonus bids under GOMESA is $0 for FY2011. This is clear evidence that the financial scope of these decisions reach beyond the Federal Treasury.

The 100 percent falloff in bonus bid revenue from 2008 to 2011 will also have long-term economic impacts that include lost jobs, lost royalties, and lost rental fees—all of which have a negative impact on our employment and fiscal challenges. If companies continue to face challenges in obtaining permits, future lease sales revenue will be negatively impacted by that uncertainty. No company wants to own a lease if there is not a reasonable expectation that its exploration plan or permits will be approved.

In order to better understand the direction the agency is headed with federal offshore leasing we ask that you provide the status of all anticipated lease sales for FY2012, as well as current planning areas under review for inclusion in the next 5-year plan.

David Vitter
United States Senate

Richard Shelby
United States Senate

Kay Bailey Hutchison
United States Senate

John Cornyn
United States Senate

Cc: President Barack Obama

that's $10 billion just from leases... that doesn't include the jobs working these sites... the construction of the rigs... the infrastructure, the maintenance jobs, the design professionals, the supply vessels, etc.
to quote the movie, The Fifth Element:
Now, think about all those people that created them. Technicians, engineers, hundreds of people, who will be able to feed their children tonight, so those children can grow up big and strong and have little teeny children of their own, and so on and so forth. Thus, adding to the great chain of life.
but Obama wants another stimulous bill?... how about we let companies create the jobs they are already able to?

Senator David Vitter

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