I have somehow obtained a copy of a letter from the Congressional Budget Office to the Chairman of the Committee on Natural Resources of the U.S. House of Representatives about the budgetary issues governing the leasing of oil and gas resources on the Outer Continental Shelf [PDF]. Among its dark secrets is this:
You asked for information about the budgetary implications of a recent administrative action and potential legislative changes in policies governing the leasing of oil and gas resources on the Outer Continental Shelf (OCS). In particular, now that the President has removed previous restrictions on leasing in areas off the Atlantic and Pacific coasts, you asked how CBO would estimate the budgetary impact of legislative proposals ...
Taking into account a wide range of potential leasing results under current law, CBO estimates that OCS receipts will increase by about $2 billion over the 2009-2018 period as a result of the recent administrative action. ...
$2 billion sounds substantial. But, a quick analysis of all U.S. government revenues over the period of 2009-2018 indicates that it would amount to only 0.09% of the 10 year deficit [PDF].
This is only part of the benefit-cost analysis that should be conducted. Other benefits are the market effects of increased oil and gas. Costs include environmental costs. I'll try to get this part completed later this afternoon and send a letter to the Chairman of the Committee on Natural Resources of the U.S. House of Representatives.
Or maybe I'll work on a powerpoint.
Update #1 (Sex, Drug Use and Graft ...):
As Congress prepares to debate expansion of drilling in taxpayer-owned coastal waters, the Interior Department agency that collects oil and gas royalties has been caught up in a wide-ranging ethics scandal — including allegations of financial self-dealing, accepting gifts from energy companies, cocaine use and sexual misconduct.
... the Minerals Management Service, which collects about $10 billion in royalties annually and is one of the government’s largest sources of revenue other than taxes.
...
The report says that eight officials in the royalty program accepted gifts from energy companies whose value exceeded limits set by ethics rules — including golf, ski and paintball outings; meals and drinks; and tickets to a Toby Keith concert, a Houston Texans football game and a Colorado Rockies baseball game.
The investigation also concluded that several of the officials “frequently consumed alcohol at industry functions, had used cocaine and marijuana, and had sexual relationships with oil and gas company representatives.”
Sign me up for the MMS! Er, wait, did I say that out loud?
Update #2 (House Bill...):
After months of political assault from Republicans over high gasoline prices, House Democrats are preparing legislation that would relax a decades-old ban on oil drilling along much of the nation’s coastline.
The legislation, still being assembled Wednesday for a vote as early as Thursday, would also require utility companies to generate more power from renewable sources, provide tax incentives for alternative energy like wind power and institute new conservation programs.
The measure, which would retain current restrictions on drilling off the Gulf Coast of Florida, would repeal some federal subsidies for oil companies and seek to improve the collection of royalty payments.
...
Under the Democratic approach, the federal government could lease drilling rights 50 to 100 miles off a state’s coastline as long as a state affirmatively “opts in” by passing a state law. Waters beyond 100 miles would be open to federal leasing. National marine monuments and sanctuaries would be permanently withdrawn from any leasing programs. Alternative proposals offered by Republicans would allow drilling as close as within 12 miles of a state’s coastline.
Here is an issue that the American public can really use to figure out the start differences in the political parties:
- Democrats: 50 miles
- Republications: 12 miles
