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John R. Carroll[_3_]

wrote:
On Aug 27, 6:30 pm, F. George McDuffee gmcduf...@mcduffee-
associates.us

The US oil companies are not drilling on many of the domestic
leases they already hold. One suggestion is a "use it or lose
it" provision. If you get a oil/gas lease from Uncle Whiskers
you have 3 years to start drilling and 5 years to start producing
or the lease reverts back.

Unka' George [George McDuffee]

Really bad idea. Oil companies lease large areas where they think
there is a possibility of finding oil. Then they have to drill
wildcat wells to find out if there is any oil there. Sometimes they
contribute dry hole money to another company. That is money they pay
if the wildcat well does not produce oil. They usually get access to
the drilling logs and have learned where there is no oil at a lower
cost than drilling themselves. At any rate one does not drill a
wildcat well hoping to find oil, unless one has a good deal of land
leased so that if the field is found numerous production wells can be
drilled.

If the US gov went to a use it or lose it, there would be much less
land leased

I think you might be right...

and less exploration in the US. So the gov would get less
money from leases.

Oh no.
Those leases would bring a price that would make your nose bleed and they'd
be worth it.
There would just be less interest in shutting out competitors.

--
John R. Carroll