Toro 3 Posted March 1, 2007 Investment is about risk. If Exxon believes it's worth the risk, fine, it's their cost anaylsis. My tax dollars should not go to protect that risk. I didn't realize you had such a socialist streak in you. So you don't believe that it's the gov't role to protect American interests? What does the tax rate have to do with royalties? Royalties are a share of the GROSS, and taxes are a share of the net profit. The companies are paying BOTH and the debate was whether 1/8th royalties were unreasonable. Most Federal and State royalties in AK are 12.5%. Toro's discussion of nationalization is very pertinent to the discussion. I have worked nationalization cases as a consultant, and in only 1 case did the oil company receive fair compensation for their loss (in a strict economic sense, political idealogues please exit stage right). If any integrated E&P company is going to become involved in energy production in Iraq, they must have assurances that their investments will be protected. Toro is actually understating the investment. It won't be hundreds of millions, it will be tens of billions. One deep gas well in the state of Texas costs $6-$12MM to drill, not counting infrastructure, leasehold, technical overhead, etc. Building a single offshore platform can cost upwards of $10B. The conspiracy theorists among you need to quit worrying about the poor Iraqis and be grateful you can fill the monster gas tank in your 300 hp SUV. How big is your carbon footprint? It's hard for these guys to understand because they read one article and think they are experts in foreign investments. Share this post Link to post Share on other sites
Boz/BoFan 0 Posted March 1, 2007 Well that settles it, you obviously don't proof read what you post, cause you make statements 1000x dumber! Ok, thaaaats the dumbest. Share this post Link to post Share on other sites
Snoopy1 0 Posted March 1, 2007 So you don't believe that it's the gov't role to protect American interests? My god, things go bad, post a strawman. To silly to respond... Share this post Link to post Share on other sites
Toro 3 Posted March 1, 2007 My god, things go bad, post a strawman. To silly to respond... See ya. Share this post Link to post Share on other sites
