Could Offshore Drilling Reduce the Deficit?
January 24, 2011
Sen. David Vitter (R-La.) wants the Obama administration to provide Congress with data on the federal government's offshore drilling revenue -- information that would show just how much President Obama's antidrilling policies are impacting the budget, says the Texas Insider.
- Based on recent projections from the U.S. Energy Information Administration, production in the Gulf of Mexico is expected to drop this year by 220,000 barrels per day.
- With oil currently at $90 a barrel and the government's royalty rate at 18.75 percent, that equals $3.7 million in lost federal revenue each day.
Last fall Vitter asked the Interior Department to share revenue figures, but Interior Secretary Ken Salazar ignored the request. Now, Vitter is taking his case directly to the White House.
Source: Robert Bluey, "Could Offshore Drilling Reduce the Deficit?" Texas Insider, January 20, 2011.
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