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Just in case you were wondering why BP had a rig where it did, and were looking to tie it to GWB...
In 1995, President Clinton signed the Outer Continental Shelf Deepwater Royalty Relief Act which exempted oil wells drilled deep in the Gulf from the normal royalty payments they would normally have owed the government for their oil. Usually, these payments amount to between 12% and 16% of their revenues, so exemption from this requirement did a great deal to catalyze drilling in deep waters in the Gulf of Mexico. As a result of the Administration action, deepwater oil production in the Gulf increased rapidly, growing from 42 million barrels annually in 1996 to 348 million in 2004. The latter figure represents about 6% of total United States oil consumption and about 15% of domestic production. Natural gas production from deepwater Gulf drilling increased tenfold during the same period.
Outer Continental Shelf Deep Water Royalty Relief Act of 1995
In 1995, President Clinton signed the Outer Continental Shelf Deepwater Royalty Relief Act which exempted oil wells drilled deep in the Gulf from the normal royalty payments they would normally have owed the government for their oil. Usually, these payments amount to between 12% and 16% of their revenues, so exemption from this requirement did a great deal to catalyze drilling in deep waters in the Gulf of Mexico. As a result of the Administration action, deepwater oil production in the Gulf increased rapidly, growing from 42 million barrels annually in 1996 to 348 million in 2004. The latter figure represents about 6% of total United States oil consumption and about 15% of domestic production. Natural gas production from deepwater Gulf drilling increased tenfold during the same period.
Outer Continental Shelf Deep Water Royalty Relief Act of 1995