From the Energy Front for 123009
As I have said in the past, we need to follow California's lead on this one. Look at California. That's right folks, California is one of the models that President Obama wants to use for America itself. It will come to the same end result as California. To help them out of the mess, they decided to DO what America SHOULD be doing. Why? Because the ANSWER is RIGHT HERE!
California decided to use a portion of its abundant Natural Resources to pay for services to its Citizens. An estimated $1.8 billion in State royalty payments are expected over the life of developing these resources, and the funds will help defray the State's budget shortfall as well as increase our entire Country's energy security. Again, as I have said in the past, it HAS been proven. Now we just have to do it. Not to mention more than $6 billion annually for the state and create more than 16,000 jobs. That should help boost any States Economy.
Not to mention the Trillion annually for the Federal Government, if we are allowed to Drill Here, and Drill NOW. That's a big step toward reducing the Deficient that all this out of control spending has done.
Well, we have a bit of an update on this. According to the Long Beach Press Telegraph - LB's black gold By John Canalis Staff Writer 12/26/2009 08:42:24 PM PST
Long Beach looms in the background as a pump extracts oil on the Tidelands Oil Production Company property in the Port of Long Beach. (Stephen Carr/Press-Telegram)
One of the solutions to Long Beach's ongoing budget problems may be buried deep underground.
Complex contract negotiations involving the Wilmington Oil Field in and around the Port of Long Beach could uncover a cash gusher for public and private interests.
Preliminary 10-year financial projections associated with the project include eye-popping numbers:
Get these numbers.
$130 million for the city's general fund, which pays for services such as police and firefighting;
$150 million for the city's Tidelands Fund, which pays for services such as lifeguards and coastal development;
$240 million for Occidental Petroleum, which is under contract with the city to extract oil from the Wilmington field.
Though the formulas being used are proprietary to those in the negotiations, the forecasts are rooted in oil trading at an average of about $80 a barrel, the value of the dollar - which tends to move in the direction opposite of oil prices - anticipated demand, and other factors.
In addition to sharing in the net profits that could result from future drilling, the city could realize other income from a 41-cent-per-barrel tax and utility-users' taxes on electricity and natural gas, both of which are used in oil production, Assistant City Auditor James Johnson said.
The Wilmington field deal is far from done, but if it is realized, it would pump more money into public coffers than any other publicly known project on Long Beach's financial horizon.
"In terms of actual revenue that will fund general fund requirements, additional police, additional recreation, there's nothing like this that I know of," said Mayor Bob Foster, who later added, "If you could see additional revenue without significant environmental impact, why wouldn't you do it?"
EXACTLY. Why would we do it. Imagine this one a National Scale. Why would we not do it? Well, one reason is we have an Administration that is beholden to the Kooks. Another is that it does not fit their Socialistic Agenda. They do not own nor control the Oil and Natural Gas industries. So, if they do away with them, they can, and WILL own the "Green" Energy Industry. They then can and WILL regulate it in such a way as to force you to participate, or fine you if you do not. Either way, they win. They are not happy with merely SHARING in the wealth, they want it all.
Foster made it clear, however, while the project is the biggest thing on the table for the city budget when examined in purely financial terms, it would not mean nearly as many jobs as some of the proposals being discussed for the former Boeing 717 site, such as an electric car plant or film studio.
Difference is, Oil is a guarantee. Electric Cars? Film Studio? Well, not so much. Besides, in a rolling black out area, where are all those cars going to be plugged in? Of course the Kooks are against anything even remotely associated with Oil. However, and this has been proven true elsewhere,
Several city and state officials said in interviews over the last few months that the project would increase oil production without fouling the water or air, or widening the port's carbon footprint. Air pollution credits - exchanges between cleaner and more polluting projects - of some kind may be needed to achieve true neutrality, though.
Also, carbon dioxide and other emissions associated with oil production are markedly down in the port in the last decade, according to a Long Beach Gas & Oil Department chart shown to the City Council.
And the contract would need to pass muster with the state, which is controlled by a Democratic Legislature known for favoring the nation's tightest air quality regulations.
"We won't take anything to the commission for consideration if we are not comfortable with the environmental aspects of the project," said Greg Scott, chief of the State Lands Commission's Mineral Resource Management Division in Long Beach.
Because much of the oil field belongs to the state, administrators who work for the powerful State Lands Commission are in negotiations to increase production with the city's Gas & Oil Department and Westwood-based Occidental Petroleum.
City acts as trustee
The city oversees California's section of the oil field as a trustee, and money generated from production is paid into a trust that later goes to the state, explained Charles Parkin, a city attorney.
We are talking about a lot of money, for the State, and it's people, without the State having to do anything but say, "Go for it. Do what you do."
This is also why much of the money generated by the field feeds the city's Tidelands Fund, which can only be spent on a narrow range of coastal uses south of Ocean Boulevard, rather than the broader general fund for core services.
Negotiations are focused on the western flank of the Wilmington Oil Field, an area that roughly spans Pier J and Pine Avenue to the Dominguez Channel and the Los Angeles side of the harbor.
Occidental officials believe it would require a significant investment, some $50 million, to use modern recovery techniques to extract harder-to- reach oil. So Occidental has asked for new contract terms in an area it is already drilling that would reallocate how revenue is shared among the city, state and the oil company to make additional investment worthwhile.
That is NOT the State, nor tax payers. That is those big bad Oil company types that will be taken the risk.
"They're the ones who take the (financial) risk out there," said Curtis Henderson, manager of oil operations for Long Beach Gas & Oil.
It is, however, a calculated risk. Occidental engineers know the field well and would use both new and existing wells to extract more oil.
"We're reasonably confident that the investment should pay off for everyone," said James Eastlack, an Occidental executive who serves as general manager of the city's unit on the western half of the oil field, Tidelands Oil Production Co., or TOPCO.
But there is only one way to find out.
"Until you start drilling a couple of wells out there, that's the only true way determine whether the oil is there or not," Henderson said.
Not to mention, all to often, they find MORE than they had originally thought. Once they start Drilling, or course you may find a dry well here or there, but a lot of times you find FAR MORE than anticipated. Which of course, benefits ALL even more. Who is standing in the way? Yeah. Same Kooks that have put California where it is today. Same people that have refused to let America build any new Refineries, Nuclear sites, or Drill and use our own resources. Why? Political agendas. Their arguments are outdated and completely false. However, they have acquired more and more power over the years, and sometimes stupidity win outs. Here are facts and truths.
Also, supporters said, any new drilling would be subject to modern state air- and water- quality regulations, which are stricter now than they were in the 1970s.
In a recent interview, Karnette said she would ultimately like to see a shift from oil toward less-polluting fuel sources, but until that day arrives Long Beach and the state may as well benefit from job creation and revenue.
"If we're going to use it (oil) anyway, and Long Beach is my district, my city, we should be the ones to use it and make it as clean as possible," she said. "We have to go green, and we also have to be realistic."
Remember, going Green is NOT possible anytime in the near future. You driving to work today, IS. We need to use what we have an abundance of, and what makes the World hum, until someone, anywhere, can find a real alternative solution. On a mass scale. Affordable to all.
Lowenthal said there were assurances that the project would not lead to a significant spike in carbon emissions while also providing funding to the city and state.
"It really had a public benefit to it," he said in a recent interview.
It is a National Benefit, if we were to do this on a National scale. It goes on to talk about the negotiations and the cost to the Companies doing this, I encourage you to read the whole thing. It is interesting. However, the crust of this is simple. Drilling here, using our own resources, creates revenue, Jobs, and increases Security. It also brings down costs. Helps ALL who rely on Energy, which is of course, uh, ALL. It does not pollute, destroy, or affect the Environment in a negative way. It does NOT kill the planet. It helps may the Planet work better. It really is, just that simple.
LB's black gold