The case for offshore oil and gas royalties

[TSmith274]

Well, the first real hurdle for Louisiana to recieve its fair share of it's oil and gas royalties happens Wednesday in comittee. Let's keep our fingers crossed, Louisianians. We need this money for coastal restoration and levee construction... our very survival. The picture below gives a real picture of just how important coastal Louisiana is to the nation's oil and gas industry...

[Stratosphere747]

Very important to La, and the other Gulf states as well.

Hard to not get political here.....

So many variables....

I can see natural gas, but almost no way that oil will get thru.

[Sean in New Orleans]

May be an unpopular opinion, but, if Louisiana is rejected, than I think Texas and New Mexico should have their present provisions rescinded and the entire situation re-evaluated. The entire system is obviously flawed. Even if Louisiana gets what it is asking for, Texas (our next door neighbor), will still receive more revenues from rights...what's that all about???? Is this how Texas has NO State income tax?

[Audrey2Katrina]

I can see natural gas, but almost no way that oil will get thru

Why not? MOST of our oil happens to be offshore and it sure means a LOT to the rest of the nation. States like Wyoming which don't produce 1/10 the Oil of Louisiana get over a Billion a year in royalties because the gov't forks back 50%. I don't see this as asking too much and I believe all we're asking is like 10%... c'mon what's fair is fair.

I'll stop there or this thing will really get political.

A2K

[Audrey2Katrina]

if Louisiana is rejected, than I think Texas and New Mexico should have their present provisions rescinded and the entire situation re-evaluated. The entire system is obviously flawed.

I agree... unfortunately we lack the political clout of the bigger states, hence they feel they can continue to just take whatever we produce without giving back anything.

What it will ultimately boil down to is an old Fram Oil Filter commercial. With this money we can build the protection we NEED and DESERVE. If we get these revenues... we can take care of our own needs... if not... another catastrophe awaits in the wings and like he Fram guy used to say:

"You can pay me now.... or you can pay me later!"

Either way it's gonna cost.

A2K

[TSmith274]

Well, with over 100 co-signers, the bill has passed through commitee. In its current form, Louisiana is requesting 75% up to 6 miles out, and 50% to 12 miles out... resulting in an annual sum of $3.5 billion, eventually $7 billion at 20 years. Of course, this will no doubt be negotiated down, but ya gotta start high. If this passes all the hurdles in its path, Louisiana will have cat 5 protection from Cameron Parish all the way to the mouth of the Pearl River, and the coast will be restored. We may also be able to restructure our business tax code and eliminate the state income tax, according to what I heard on the radio. Keep your fingers crossed.

[Audrey2Katrina]

Oh... They're crossed.... as are the eyes, and just about everything else!

A2K

[TSmith274]

Just saw a story about this on Fox8. My numbers are a little off, but roughly the same ballpark. It was mentioned that the Bush administration is against this bill because it "takes too much money out of the treasury". Whatever... it's ours to begin with. We'll see what happens.

[Audrey2Katrina]

Well, I'll avoid the obvious opening for a political statement here; and suffice it to say that this arrogant attitude doesn't surprise me. They already give 50% royalties to many other places, but don't want to give us ours... maybe someone should teach them a little reading and provide them with this:

http://www.stratfor.com/news/archive/050903-geopolitics_katrina.php

Sort of a Reminder about just how important New Orleans IS to this nation, and the sad thing is that as usual it looks like many are willing to just put a band-aid on a wound in need of considerably better medication.

A2K

[Dionne]

I cannot imagine why Louisiana will not recieve the royalties? Possibly because the oil patch is offshore?

Alaska has been recieving oil royalties for 30 years. Residents get money every year from the "Permanent Fund" which was established as a result of the oil revenues.

Doesn't this set a precedent?

[Audrey2Katrina]

Possibly because the oil patch is offshore?

This is the crux of the problem. But then again, Louisiana is the state allowing this to happen. Perhaps they'd look at it a bit differently if, like Florida, we just banned all offshore drilling altogether -- seein' as how it's such an environmental hazard and everything. (Sarcasm intended--but aimed at no one other than the government for not recognizing our rights to SOME remuneration if only for our own protection.) Heck, I wouldn't oppose the codicil that the funds be REQUIRED to restore wetlands, and build hurricane protection.

A2K