President Obama’s drilling moratorium in the Gulf is not only contributing to higher prices for us at the pump, job losses in Louisiana and fueling oil shortage problems, it’s also losing money for the government.
Rob Bluey writes in the Washington Examiner:
“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% of all U.S. prodution – 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 about 18.75%, 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.”
Louisiana Senator David Vitter has protested against this policy, but in the Obama administration has yet to budge.