General Oil, Gas and CERAweek
Markey Report: Oil Companies Pocketing Billions of Dollars in Free Drilling
The gubmint decides that, since they can't sell and acre of lease due to the low price of oil, they need something to get some drilling done. Therefore they offer "no royalty" leases at a time oil is selling for under $20/bbl. They sold their leases. making a mint on the sale, wells were drilled that otherwise would not have been and the public had gasoline for their cars.
Now dead-head Markey wants the money back.
But... He got his head handed to him again - thankfully. Don't make a bargain and then break your word dEaD.
“The Deep Water Royalty Relief Act was a good example of sound, constructive energy policy that was very successful in establishing a reliable source of domestically produced energy,” said John Christiansen, spokesman for Anadarko. “Without the DWRRA incentives that spurred these long-term investments, much of the domestic production in these frontier areas of the deep-water Gulf of Mexico would not exist today.”
Moreover, he said, the lease bonuses, royalties and income taxes on deep-water production paid to the federal government from other wells still total in the billions of dollars “and have grown markedly since 1995.”
Another useless individual.....