I am becoming convinced the Democrats truly do want to destroy the American economy just like they wanted the US to lose in Iraq. Their lying regarding the business of oil is pervasive and evil.

From the Institute for Energy Research:

The Truth About Leasing on the Outer Continental Shelf

The Claim: “Energy companies are not using federal lands already open to energy development�

Some lawmakers state that oil companies currently hold millions of acres of leases that are not producing. This is true, but not for the reasons politicians would have you believe. It seems the lawmakers would have us believe that oil and gas exist beneath every acre of every lease the government issues; that obtaining a lease was a virtual guarantee that the lease holder would strike oil and gas, or both. Obviously, that’s absurd. If it weren’t, I’d be on line at the Department of Interior trying to buy an acre or two for myself.

Unfortunately, there are no guarantees. Oil and gas might be found during the exploration phase of the lease, or it might not. This process, and those that involve satisfying all of the government requirements, defending against frivolous environmental lawsuits, and preparing to drill if energy is found can take a long as a decade.

The Truth & The Laws

Energy companies cannot “stockpile� leases (even the ones that are found to contain no oil or gas) in order to drive up prices:

* The Mineral Leasing Act (for onshore production): Section 17(e) stipulates that an oil company must have a producing well within 10 years or surrender the leases. Source: 30 U.S.C. 226(e)
* The Outer Continental Shelf Lands Act: (for offshore production): Stipulates that an oil company must produce energy between 5 to 10 years (in the government’s discretion) or surrender the lease. Source: 43 U.S.C. 1337(b)

The Hard Facts:

* 97 percent of Federal offshore areas are not leased.
* 94 percent of Federal onshore areas are not leased.

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