Trump wants to stop sharing Gulf of Mexico oil royalties with Alabama, Louisiana, Mississippi

[donnay]

Trump wants to stop sharing Gulf of Mexico oil royalties with Alabama, Louisiana, Mississippi and Texas

Tom DiChristopher | @tdichristopher

Four U.S. states on the Gulf of Mexico stand to lose billions in future payments if a proposal in the president's new budget survives congressional scrutiny.

The White House on Tuesday proposed ending a program that shares revenue from offshore oil and gas drilling with the states — and it does so just as those payments were scheduled to expand significantly.

Alabama, Louisiana, Mississippi and Texas — all of which went for Donald Trump in the 2016 presidential election — are trying to close their own budget gaps amid a protracted oil price downturn and as the new White House budget asks them to absorb cuts to social welfare programs.

"The GOMESA program is critical to coastal states, who assume the environmental and economic risks and provide a majority of the infrastructure and workforce for the offshore oil and gas industry"
-Rep. Bradley Byrne, R-Ala.

The plan is part of the president's effort to contain the growth of the U.S. federal deficit. The Office of Management and Budget estimates that ending the royalty-sharing program would save the federal government $3.6 billion over a decade.

The program is part of the 2006 Gulf of Mexico Energy Security Act, or GOMESA, which was designed to encourage offshore drilling by giving states a cut when Washington leases federal water to energy companies for exploration.

Read more: http://www.cnbc.com/2017/05/24/trump-to-stop-sharing-gulf-of-mexico-crude-oil-royalties-with-states.html

[CPUd]

https://www.youtube.com/watch?v=ySdhGyqGCZk

[Anti Federalist]

Bad move.

Take those payments away and the states will then roadblock and ransom every single new drilling project that comes along, further adding to already over costly and over regulated process.

Be the final nail in the coffin of US offshore drilling.

[Swordsmyth]

This will not make it past the congressional delegations from those states.

[phill4paul]

Bad move.

Take those payments away and the states will then roadblock and ransom every single new drilling project that comes along, further adding to already over costly and over regulated process.

Be the final nail in the coffin of US offshore drilling.

Those Saudis gotta come up with $300 billion somehow.

[Anti Federalist]

Those Saudis gotta come up with $300 billion somehow.

Fucking shoot me now...

[donnay]

Bad move.

Take those payments away and the states will then roadblock and ransom every single new drilling project that comes along, further adding to already over costly and over regulated process.

Be the final nail in the coffin of US offshore drilling.

Isn't that just like welfare payments?

[Swordsmyth]

Those Saudis gotta come up with $300 billion somehow.

This isn't to help them.
Dump has other plans to crash the price of oil.


Trump Proposes Selling Off Half U.S. Strategic Oil Reserve


The White House (https://www.bloomberg.com/quote/0218390Z:US) plan to trim the national debt includes selling off half of the nation’s emergency oil stockpile and the entire backup gasoline supply, part of a broad series of changes proposed by President Donald Trump (https://www.bloomberg.com/billionaires/id/1252249) to the federal government’s role in energy markets.
Trump’s first complete budget proposal, released Tuesday, would raise $500 million in fiscal year 2018 -- and as much $16.6 billion over the next decade -- by drawing down the Strategic Petroleum Reserve.
“We think it’s a responsible thing to do," Mick Mulvaney, head of the White House Office of Management and Budget, told reporters. The “risk goes down dramatically when we have increased domestic production like we have today.”
The proposal also seeks to boost government revenues by allowing drilling in the Arctic National Wildlife Refuge...

More at: https://www.bloomberg.com/politics/a...ic-oil-reserve (https://www.bloomberg.com/politics/articles/2017-05-23/trump-proposes-selling-off-half-the-u-s-strategic-oil-reserve)

[Swordsmyth]

Isn't that just like welfare payments?

No the Idea is that the states have some rights to the waters off their shores as well.

[Swordsmyth]

$#@!ing shoot me now...

Don't jump to conclusions:

This is how DUMP plans to deal with the Saudis, First take a lot of their money for economically worthless weapons, then crash the price of oil:

Trump Proposes Selling Off Half U.S. Strategic Oil Reserve


The White House (https://www.bloomberg.com/quote/0218390Z:US) plan to trim the national debt includes selling off half of the nation’s emergency oil stockpile and the entire backup gasoline supply, part of a broad series of changes proposed by President Donald Trump (https://www.bloomberg.com/billionaires/id/1252249) to the federal government’s role in energy markets.
Trump’s first complete budget proposal, released Tuesday, would raise $500 million in fiscal year 2018 -- and as much $16.6 billion over the next decade -- by drawing down the Strategic Petroleum Reserve.
“We think it’s a responsible thing to do," Mick Mulvaney, head of the White House Office of Management and Budget, told reporters. The “risk goes down dramatically when we have increased domestic production like we have today.”
The proposal also seeks to boost government revenues by allowing drilling in the Arctic National Wildlife Refuge...

More at: https://www.bloomberg.com/politics/a...ic-oil-reserve
(https://www.bloomberg.com/politics/articles/2017-05-23/trump-proposes-selling-off-half-the-u-s-strategic-oil-reserve)

http://www.ronpaulforums.com/showthread.php?510641-Suadi-Arabia-and-OPEC-are-doomed

[donnay]

No the Idea is that the states have some rights to the waters off their shores as well.

When the oil disaster in 2010 happened the states sued BP and received money for the damages. Are the payments some kind of royalties like they give the citizens of Alaska?

[phill4paul]

This isn't to help them.
Dump has other plans to crash the price of oil.


Trump Proposes Selling Off Half U.S. Strategic Oil Reserve


The White House (https://www.bloomberg.com/quote/0218390Z:US) plan to trim the national debt includes selling off half of the nation’s emergency oil stockpile and the entire backup gasoline supply, part of a broad series of changes proposed by President Donald Trump (https://www.bloomberg.com/billionaires/id/1252249) to the federal government’s role in energy markets.
Trump’s first complete budget proposal, released Tuesday, would raise $500 million in fiscal year 2018 -- and as much $16.6 billion over the next decade -- by drawing down the Strategic Petroleum Reserve.
“We think it’s a responsible thing to do," Mick Mulvaney, head of the White House Office of Management and Budget, told reporters. The “risk goes down dramatically when we have increased domestic production like we have today.”
The proposal also seeks to boost government revenues by allowing drilling in the Arctic National Wildlife Refuge...

More at: https://www.bloomberg.com/politics/a...ic-oil-reserve (https://www.bloomberg.com/politics/articles/2017-05-23/trump-proposes-selling-off-half-the-u-s-strategic-oil-reserve)

Once it's sold, prices rise. Because inevitably, in the interest of "national security," it will have to be tanked off again. Either that or the Saudis, and others, will grab us by the balls and squeeze again. Were you alive in '73? History repeats.

[Swordsmyth]

Once it's sold, prices rise. Because inevitably, in the interest of "national security," it will have to be tanked off again. Either that or the Saudis, and others, will grab us by the balls and squeeze again. Were you alive in '73? History repeats.

The proposal also seeks to boost government revenues by allowing drilling in the Arctic National Wildlife Refuge...

See also: http://www.ronpaulforums.com/showthread.php?510641-Suadi-Arabia-and-OPEC-are-doomed

[phill4paul]

The proposal also seeks to boost government revenues by allowing drilling in the Arctic National Wildlife Refuge...

See also: http://www.ronpaulforums.com/showthread.php?510641-Suadi-Arabia-and-OPEC-are-doomed

Doesn't matter if what AF predicts comes about. And I tend to agree with him. They'll hang that shit up for years. And I can see the boost in the ANCWR as a "no go" as a matter of negotiation. Because Dems are going to fight both measures and one is not gonna happen so that the other can. And selling off reserves to help balance the budget while still burrowing into debt is like buying a 60" TV from Rent-to-Own.

[Anti Federalist]

Isn't that just like welfare payments?

No.


Are the payments some kind of royalties like they give the citizens of Alaska?

Yes.

Payment in return for extracting a valuable commodity from what is considered "public" land (or sea floor in this case).

[Anti Federalist]

Doesn't matter if what AF predicts comes about. And I tend to agree with him. They'll hang that shit up for years. And I can see the boost in the ANCWR as a "no go" as a matter of negotiation. Because Dems are going to fight both measures and one is not gonna happen so that the other can. And selling off reserves to help balance the budget while still burrowing into debt is like buying a 60" TV from Rent-to-Own.

Won't even require goonverment action.

The economics of arctic drilling don't make sense right now, when you can punch a producing hole in West Texas, NY State or North Dakota, or a million other locations for half the price, half the risk and in half the time. (Can only drill on the North Slope of Alaska in the dead of winter, when the slough and swamp is frozen.)

[oyarde]

The thing about Alaska is transportation . It is expensive and not year round .