RWB

Bush's New Drilling Proposal: Fixing a Hole

Mmarrkk: Contract renegotiation doesn't happen? Hell, if we were to open ANWR and the continental shelves to E&P (and I think we should) I, if I were negotiating the leases on behalf of the government, would make renegotiating old leases a pre-condition to bidding on new leases. I guess what I'm saying is that the government should be tough in lease negotiations--just like a private landowner should. Especially now.

I think I was clear that I understand (from direct personal experience) why and E&P company doesn't drill on a lease right away. In fact, there are more reasons than those you state, including inability to marshal enough resources right now (due to capital costs and labor availability) and desire to "tie up" a lease to prevent a competitor from getting it.

Bush's New Drilling Proposal: Fixing a Hole

Mixter--as one who works in E&P, you are right that just because you own a lease doesn't mean you have the capacity to drill right away. It's as true of leases of private land as with government leases.

But since this is true, I don't see any problem with the government getting the best deal possible, and charging for undrilled leases, as opposed to letting E&P companies just park on them for (potentially) the entire lease period. This is not a deal that could have been struck in, say, 1997, when oil was cheap. But now that it's expensive, lease-holders--includi... the U.S. government--have a leverage to negotiate (or re-negotiate) a "put-up-or-shut-up" lease. Certainly I'd do that if I were a private landowner negotiating a lease.

Nationalizing Oil: Well-Intentioned, But Wrong

I love the "extreme binary choice" form of argument--either we have a libertarian system, or we're basically Cuba. So helpful in framing the issues! Thanks!

If Maxine Waters scares you, you are a dolt. She represents the fringe point of view of the Democratic party, and holds little power to push her views onto the country. She does provide handy scary sound-bites for Republicans to exploit, though! At least she's good for something!