Current Events — HabitableZone

Current Events » in reply to Look at it this way:

"- - - divert 125,000 barrels a day of crude oil from the open market - - - "
Bowser — (archived)

In other words, that oil could be sold on the open market. And the oil companies could pay an equivalent amount in royalties to the US government.

When I get royalties I get a percentage. If I substitute gold for cash I still get a percentage based upon the worth of the gold. Or I get cash, based upon the worth of the gold.

In either case I am getting a percentage of the production at the going price for gold.

Somehow taking oil instead of $100 a barrel is being translated into "free". If I hoard my gold instead of taking cash it's not "free". It's costing me the equivalent amount of cash, at the market rate. It's money I'm not getting and would get otherwise.

There is no doubt in my mind you understand mineral contracts better than I. And I don't understand how hoarding the oil instead of ~$100 a barrel makes it free. I can understand how TB could understand it, though.

Arf

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