US Royalties to Big Oil Give a New ($100 Billion) Meaning to "Black Gold"

Thu, 2006-03-30 08:45Ross Gelbspan
Ross Gelbspan's picture

US Royalties to Big Oil Give a New ($100 Billion) Meaning to "Black Gold"

Incentives for oil and gas companies that drill in the Gulf of Mexico will cost the federal government at least $20 billion over the next 25 years, according to the draft of a Congressional report obtained on Tuesday.

The new estimates, prepared by the Government Accountability Office, also warn that $80 billion in revenue could be lost over the same period if oil and gas companies win a new lawsuit that seeks a further reduction in their royalty payments.

The report, delivered in a private briefing late Monday to House and Senate staff members, startled some of the program's longtime supporters and infuriated some critics.

The report is the first attempt by a government agency to calculate the soaring costs of a 10-year-old program that was created to encourage deepwater drilling when energy prices were low.

 
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The phrase “clean coal” has about as much merit as saying “sanitary sewage,” but that hasn’t stopped the industry and pro-coal talking heads from repeating that phrase ad nauseum to the American public.

The Orwellian industry buzzphrase was so successful that the Obama administration, as part of the 2009 stimulus package, pledged more than $1 billion to create the largest carbon-capturing system known as FutureGen 2.0. The...

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