Skip to comments.Fed govt: No, Nevada, you cannot have oil-and-gas prosperity
Posted on 10/28/2013 7:12:48 PM PDT by 2ndDivisionVet
President Obama is usually quite pleased to credit the upsurge in oil-and-gas production and the downswing in oil imports that has been happening throughout his presidency as the direct result of his administrations policies, and they would prefer that you not investigate the matter too closely and just trust that his support of renewables and biofuels and what have you combined with his prudent, keen sense of know-how for creating just enough traditional energy jobs is the source of the economic growth supporting his otherwise stagnant economic recovery.
If you were to investigate more thoroughly, however, you would quickly notice that the types of energy booms resulting in jobs and prosperity that were seeing in North Dakota, Texas, and etcetera are largely due to the auspices of oil-and-gas companies operating on state and private lands. The Obama administration will loudly and gladly direct your attention to the projects for fast-tracking giant wind and solar projects on public lands (the first of which took place last week and was a complete flop), but they are conspicuously less vocal about the ways in which theyre deliberately slowing down oil-and-gas permitting on public lands.
An excellent example from the home state of Senate Majority Leader Harry Reid, via the Las-Vegas Review Journal about a swath of land about 200 miles north of Las Vegas:
Here, in 1984, the Grant Canyon oil-field wells were first drilled. For nearly 10 years, before tapering off in the mid-1990s, the Grant wells produced about 110,000 barrels of oil per month. During these years, the Grant wells were the most productive onshore wells in the 48 contiguous states. Through most of the 1980s, in this section of rural Nye County, these few wells generated prosperity.
Despite this success, however, Nevada oil exploration has been slow and sporadic. In part this was because of a technological inability to identify and economically extract oil reserves. The rock formation beneath Railroad Valley and much of Eastern Nevada, known as the Chainman Shale, contains petroleum, but until recently the technology to extract it did not exist.
In 1995, the U.S. Geological Survey estimated that the Chainman Shale formation could contain as much as 383 million barrels of undiscovered oil, as well as 242 billion cubic feet of natural gas. Ten years later, using more sophisticated modeling techniques, the USGS. upgraded that estimate to 1.598 billion barrels of oil and 1.836 trillion cubic feet of natural gas.
In other words, Eastern Nevada could be sitting on one of the most energy-rich rock formations in the entire world. Around the time of the updated estimate, one oil developer told Las Vegas reporters, You have the richest largest organic mature rock source anyplace in the world except Saudi Arabia or Kuwait. There is no doubt, I can assure you 100 percent, you are sitting on some of the greatest wealth in this country and the world.
The only major obstacle to this potential boon? You guessed it: The federal government owns and controls most of Nevada, and while they will occasionally auction of some mineral rights and approve some drilling permits, they have steadily blocked the type of large-scale development were seeing elsewhere in the country. Unfortunately for Nevadans and Americans in general, that energy development could provide, according to one studys estimates, more than 21,000 jobs and $100 million in revenue for Nevada i.e., exactly the type of economic growth of which were sorely in need.
Geez, Nevada is 80% owned by the government.
Harry Reid stood to make millions on real estate deals. This will get interesting. You know Reid’s crony friends would make money and think of the union jobs.
The left remains the strangest coalition ever assembled.
Who owns the west
“How did it come to pass that the Feds own most of Nevada?”
If I recall correctly, the United States took the land that became Nevada, plus a lot of other land, from Mexico at the end of the Mexican-American War. They paid Mexico afterwards, but they took it first. Then they established Territories on the newly acquired land.
The Second Paragraph of Section 3, Article IV of the US Constitution states in part: The Congress shall have Power to dispose of and make all needful Rules and Regulations respecting the Territory or other Property belonging to the United States;
At the time, that was mostly the Northwest Territory, but later other Territories came to belong to the United States. (An interesting question is: By what Constitutional authority did those other Territories come to belong to the United States?)
In the case of many (not all) states beyond the first thirteen, said states were formed from the territories which were owned by the United States. Not the United States Federal Government, the United States.
Bearing that in mind, in many cases all of the territory/land/property within the bounds of a newly formed state was not granted to the State upon its Statehood. Some was retained by the United States.
We’d have to look at the Enabling Legislation for Nevada statehood to see the details regarding the original land granted or not granted to the State of Nevada.
It took an act of congress to impose the great lakes directional drilling ban despite all studies showing that there was virtually no danger.
Sorry, Nevada, you gotta get with the Marxist program.
Interesting. I lived in Vegas in the 80’s. Everyone knows the government has a lot of secret stuff there.
Reid has always been vermin.
Let Bammy screw Nev. for re-electing Dingy.
Nev. is clearly the outlier.
Federal ownership of 87% of Nevada land was a condition of admittance into the Union.
Same with many western states. Of course, to you easterners, it's inconceivable. To us westerners, it's a source of friction, as eastern states were held to no such condition in order to gain statehood.
No argument from me. One of the most despicable politicians ever. I just find it interesting given the corruption that the Vegas mafia could reap millions from if they opened it up.
The public lands have one advantage. Fewer people and lots of space.
I betcha’ Harry Reid is going to benefit from this that little slimeball schemer.
The fedgov should own no land. It’s high time the people started taking it back.
Hmmm. I thought it was 87%. Either way, we Nevadans ain’t gettin’ squat out of the ground. The illustrious hairy screed ain’t gonna help unless he can guarantee the unions to control the jobs. Maybe king hussein will name it a world heritage site thus blocking anybody from ever benefiting from the resource. Remember, energy prices will necessarily rise under my plan. Yeah. And all those dumb asses voted for him. Twice.
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