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Sunday, August 21, 2011

More Good News for Onhsore Drillers: Government Will Make It More Expensive to Lease Offshore

Link here.

Rate goes from $40/acre to $100/acre (numbers rounded) for offshore drilling. This makes onshore look all that more attractive and overall effect, all things being equal, is to increase the price of oil. Any additional oil produced using this rationale will simply be bought by China.

Meanwhile, what good is a lease without a permit?

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