Monday, February 2, 2009

Drilling Policy in Golden State

             In the article "Golden State Gets Surprisingly Cozy with Notion of Offshore E&P," many drilling problems are mentioned by the author. The state government considered the energy industry a cash cow, so that it could cut a projected $11.2 billion budget shortfall. The state government also proposed an oil severance tax on producers because of gross value of barrels of oil, so that it can raise million dollars during California's fiscal year. Even though California is the third-largest oil producing state, it doesn't collect an oil extraction fee. Recently, while oil producers are paying regulatory fees, a corporate income tax, and sales taxes on equipment, there will be a new tax coming into effect on Jan. 1, according to the governor's office. As the government carries out some drilling limitation policy, many oil producers are still looking foward to exploring abundant plains to drill; these plains have been used as public place. Fortunately, the federal Minerals Management Service recently signed a contract with applied Maine Sciences, to help evaluate environment mitigation measures and conditions required for oil and gas projects.

             In my opinoin, the government in California is not too aewsome to threaten this arrogance; the government only benefits on tax and extraction income of oil producers, they aren't concerned about on focus on what people's feeling is or what they have often conplained about.

             As money comes from oil producers, many oil producers are becoming richer and richer; at the same time the environment is becoming worse and worse. They didn't spend money on protecting the environment. Hopefully, the government will realize the big problem coming to people rapidly, and put the money which is from the tax of oil producers in MMS.
Although the government has reduced oil producers' drilling offshore, oil producers still go against the policy to drill on the plains. As they are happy from the incoming money, they damage people's houses, they make people homeless, and they produce pollution underground to make earth become decomposed and corroded.

              In conclusion, oil producers should think about all people who live on the same earth. As they drill oil and gas crazily, they not only destroy other people's houses, but also destroy their houses. As the article said, we should get cozy by living with each other.

Sullivan, J. A. (2008, December 1). Golden State Gets Surpridingly Cozy with Notion of Offshore E&P.

Retrieved January 20, 2009 from Lexis Nexis database. Natural Gas Week.

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