California Budget Crisis Caused By Refusal To Drill For Oil – With Video
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Drilling for oil off the pristine California coast is a topic that generally polarizes people. One side argues for not even considering the minimal risk of an oil leak ruining – even temporarily – the coastline’s natural beauty and habitat. The other asks for a reasoned approach toward balancing the reality of a now dangerous dependence on foreign oil sources with an environmental risk – and the bold fact that California’s $40-billion deficit and cash crunch is reaching the tipping point.
The state’s legislators are like the Hatfields and the McCoys. They are deeply divided between the low-tax Republicans vs. the raise-tax Democrats. Maybe there is a balance that can be reached, but as of this writing, it is not happening.
I was just reading an interesting editorial from Investors Business Daily (www.ibdeditorials.com) – “Drill, Arnie, Drill.†Here are some of the highlights:
California’s revenues have weakened more than expected, thanks to a protracted housing slump and sinking retail sales. Rising unemployment is also adding to budget woes. Schwarzenegger wants to raise the state’s sales tax to help make up the shortfall.
But there’s a better way to drum up revenues, one that won’t cost California taxpayers a dime. The state could generate huge royalties by allowing offshore oil drilling.
The Interior Department estimates that those bicoastal waters contain at least 18 billion barrels of oil  more than half of it off the California coast.
Drilling in those waters could generate almost $1 trillion in new energy revenue, pumping potentially billions into California and other state coffers in the form of royalties and other income.
Drilling technologies and the industry’s track record in the Gulf of Mexico – 99.999 percent clean drilling since 1975 – show that offshore drilling for oil is safer than ever.


