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A $Trillion$ Missed Opportunity

Mike

Well-known member
A trillion-dollar missed opportunity – enough to pay U.S. deficit
December 6, 2010 | Posted by Ken Cohen
On the heels of the Administration’s recent decision to place a de facto moratorium on offshore drilling in the eastern Gulf of Mexico and the Atlantic, we asked readers of today’s Wall Street Journal if they knew how much that decision might cost in terms of lost government revenue.

According to a study by ICF International, expanding domestic energy development in America’s offshore areas could alone generate $1.3 trillion in government revenues over the life of the resource – along with major increases in jobs and economic activity that result from offshore development.

To put this figure in perspective, consider the following numbers:

In 2010, the U.S. federal budget deficit was $1.3 trillion.
The total U.S. national debt currently stands at about $13.8 trillion.
The U.S. oil and natural gas industry contributes more than $1 trillion a year to the U.S. economy.
As I indicated in my commentary on Wednesday about the moratorium, this decision is a real missed opportunity to spur economic growth, create more jobs and strengthen U.S. energy security. You can read more in last week’s post: DOI’s offshore plan: a missed economic opportunity that also weakens U.S. energy security.
 

Tam

Well-known member
The maddening thing about this is Off Shore drilling is a no no under Obama unless you are Brazil that is, then it is have at it and here is two billion US tax payer dollars to help you fund it. :mad:
 

Steve

Well-known member
it is worse then just the lost revenue,.. but it effects our trade imbalance, and supports rogue oil producing countries..

the U.S. trade deficit in oil increased to $327 billion in 2011. In fact, progressively higher oil prices have increased the total cost of the net U.S. oil import burden in recent years, even as imported volumes have declined.

Over the past decade, however, the size of the U.S. trade deficit, in part driven by the increased cost of net oil imports, has grown significantly. Its current size, totaling more than half a trillion dollars in 2011, cannot be sustained indefinitely. It creates significant risks and vulnerabilities for the U.S. economy.

This compounds America’s international debt burden while lowering the prospects for long-term U.S. economic health. The emergent challenge provides yet another important argument for taking critical steps to end American dependence on oil.

our oil trade deficit is compounded by the cost of importing oil.. and our refusal to drill in oil rich areas is downright stupid..

and even if the tax revenue from those who would be employed is marginal.. a person working may not earn much,.. but he is not a burden on society.. unlike then a person not working,...
 
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