Voice - Oil rights are not given to any one or any company. THe system is set up where the government opens an area up for exploration and drilling. Anyone is allowed to bid on the tract (called a lease). As long as the high bid (in the auction) is above the minimum threshold, the high bidder gets the lease.

If you want to bid, go for it. You might get it.

THey are not given away.

I'm under the belief that the minimum threshold is low "respectively speaking" but astronomically beyond the means of everyday Americans like myself. But of course your bid statements were meant to be sharp and biting, not realistic. What does it amount to per barrel of oil? Thats right, it is impossible to say because nobody keeps track of how much oil is drilled from each tract.

Furthermore, the statements "Oil rights are for all intentions given to big oil." and "Oil rights are given to big oil" are dramatically different statements.

Now what is your point? That you believe this bid process is giving a fair return to the American people for their oil? Obviously I do not.

My point wasw that oil and natural gas leases are not given away. You and I and almost everyone else cannot afford them, but then even if we won them, we could not afford the billions of dollars to explore and develop the fields anyway.

The oil companies will bid as much as they think it takes, within their cost projections, to win the lease. And not a penny more. It is very possible that the minimum bid is set too low by the government. I do not dispute that. However, there have been many cases where the minimum bid was set too high and oil companies declined to bid at all. The government wants as much as they can get for them.

Well you said it. "I assume it is low". That is exactly the point I was trying to make. Too low. I'm glad you agree with me.

Another question on this topic for you: I live in Florida. It seems the oil people want to drill all around FL. 1. Are there any wells on dry land in FL? 2. WHy would there be oil all around FL but not on land in FL.

It would seem to me that on land wells would have a lot easier time containing spills.

TIA

Roman is right. Oil companies profit per gallon of gasoline is generally les than 10 cents per gallon. State governments add anywhere from 20 to 40 cents while the federal government adds another 30 cents. I have absolutely no problem with profits for oil companies or any other company for that matter. After all, this is a capitalist economy. I do have a problem with gasoline prices. The problem does not lie with the oil companies, but the federal and state governments that tax it to death. If I am not mistaken, the lowest amount of tax (federal and state combined) is around 45 to 50 cents. 10 cents at most doesn't mean so much anymore. If people were looking to see who was ripping us off rather than buying into the lie, they would see oil companies are not to blame for the tremendously high price of gasoline.

However, coming from Illinois, a higher percentage of ethanol couldn't hurt either. Just remember they can still tax that at the same or higher rate!

Voice of Reason-
There are oil deposits under ground in Florida. However, they are so deep that it is impossible for it to be profitable to retrieve it. It is easier, safer, and more profitable to drill in the Gulf. What I do not understand is the amount of people bitching about gas prices that refuse to allow more oil exploration, either in the Gulf or ANWR. It is going to be one or the other; more exploration or higher and higher prices.

...the profits sure have not been used to keep the pipelines in Alaska in good working order, huh...

Florida has fought offshore drilling for years - successfully so. Here is what the St. Petrsburg Times had to say:
http://www.sptimes.com/2005/06/13/Worldandnation/Oil_rigs_thirsting_fo.shtml

The federal government has banned virtually all drilling in Florida's offshore waters since 1983 - a decision upheld by Congress and the last three presidents, including George W. Bush. Florida is also the only state on the Gulf of Mexico that prohibits drilling in its inshore waters.

Some oil leases were sold in the gulf, south of the Florida Panhandle, many years ago. But Congress and President Bush's father prevented drilling there, and new leases are prohibited within about 100 miles of Pensacola.

As of January, 2006, there were 85 producing oil wells onshore in FLorida with a monthly poduction of 203,892 barrels of oil per month. Compare this to Texas who produced 29,317,766 barrels of oil in January. Basically, Texas is producing almost 150 times as much oil as Florida.