Money Down the Drain

President Obama’s drilling moratorium in the Gulf is not only contributing to higher prices for us at the pump, ┬ájob 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.

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