Obama’s Drilling Ban Piles Billions on Federal Debt

Rob Bluey, Foundry Blog

Billions of dollars in potential oil revenue that could help close the federal deficit is being lost as a result of President Obama’s anti-drilling agenda.

Production in the Gulf of Mexico — which normally accounts for about 30 percent of all U.S. production — is expected to drop this year by 220,000 barrels per day, according to projections from the U.S. Energy Information Administration.

With oil currently at $90 a barrel and the royalty rate at 18.75 percent, that equals $3.7 million in lost revenue each day.

If the agency projections hold over the course of the year, the federal government would lose more than $1.35 billion from Gulf royalty payments this year.

The number grows even larger when coupled with a lack of Gulf lease sales and fewer rental payments. Those three components — royalties, leases and rent — make up a sizeable amount of government revenue.

The looming shortfall is raising red flags on Capitol Hill. Sen. David Vitter, R-LA, an outspoken critic of the Obama administration’s drilling moratorium and the subsequent slowdown in permitting, first called attention to it in September.

“It’s not only about job loss along the Gulf Coast — the federal government is losing revenue as a result of the administration’s misguided moratorium,” Vitter explained.

“I’ve been attacking the moratorium from multiple angles and will continue to do so until drilling can fully resume.”

Interior Secretary Ken Salazar canceled a Gulf lease sale last October.

Read more.

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Comments

  1. …just another logical reason to IMPEACH obama…….

  2. We need to Impeach Obama now !

  3. Why is it that supposedly the brightest among us (Senators and Congressmen.women) are too stupid to realize this Dude (Obama) is a DUD

  4. Open the drillng, shut down the resident of the White House and his criminals and xocialist pals.

  5. Edwardkoziol says:

    How else will this mallato president control the people.I'm sure he has learned from Castro and Chavez how to make the people depend on him and you know all those people he has in advisory positions are leftwing socialist.The worst part is there is no way to stop this socialist so called president.

  6. Anybody that believes Obama cares about the debt is misguided. As long as he and his robbers get what they want the debt will skyrocket more and to hell with the United States and its citizens.

  7. obama needs to issue drilling permits and get busy and process the oil in this country, but he won't do it.
    Guess he wants the money to go to his muslim buddies.

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