The bad news is it is at 35,000 feet. The good news is that they will figure it out at $71 a barrel. The Great News is it is a "new find" and the State of Louisiana will get 7% of it in royalties. "Old oil" is grandfathered into the old law of the federal government ****ing the State by giving us nothing. They say this reserve is about half the size of the reserve in Alaska. Could be worth Billions a year to LA in tax revenue.
This discovery is in federal waters off the continental shelf, not in state waters or in the 8G zone.
Wherever it is, the state of Louisiana does get 7.5% tax revenues for all of the oil that will be eventually pumped. I think it has something to do with all the oil field canals that the oil industry has dug throughout coastal Louisiana and thereby creating the vast coastal erosion and loss of wetlands that is happening now. The good news is that all of this money must be spent on the restoration of the damaged coastal wetlands. I hope it turns out to be enough to repair the damage
We get 7.5% from the OCS area, outside the 8G zone? Much of it is being wasted on short-term "solutions" and "feel good" projects trying to save land that is un-savable. There is nothing we can do to stop sea-level ride and deltaic subsidence from taking much of Louisiana. Some of this money should be spend on relocating people and industry further inland.
