So will VA get any tax revenue when federal govt allows drilling off our coast?

[Statistical]

So the word is that there is 1.3 trillion cu feet of natural gas and 130 million barrels of oil 60 miles off the coast of VA.

Say in 10 years nat gas is worth $5 per MMbtu and oil is $100 per barrel. Those are pretty conservative I think $7-8 and $120 - $150 is more likely.
1.3 trillion / 1000 * $5 = $6.5 billion
130 million * $100 = $13 billion

So ballpark figure is the market value of the resources off VA coast are worth about $20 billion.
Now I understand there is extraction/development costs but still the gross value is $20 billion.

If federal govt allows this to happen and sells leases to oil companies does VA get any compensation?
Our water, our beaches, our mess if something goes wrong.

Does the state get any tax revenue from the leases? Or is this something where federal govt profits and we are left holding the bag?

[Zywiec]

1. How far off the coast would they drill? n/t

[Statistical]

2. 60 miles. It is in federal water.

[monmouth]

3. I wonder how the repuke Gov. and AG in VA feel about this...They

have no retort really. Ah, I just love it..

[Statistical]

4. So you would be equally happy if Obama opened drilling in federal water off coast of CA? n/t

[Gin]

5. won't that interfere with shipping channels?

if we do this...a nice refund check every year would be nice...as it is...they will be raising our taxes due to revenue shortage.

[Statistical]

8. I imagine it will plus congestion in the port.

It isn't like oil & gas from the wellhead magics itself into consumer home.

You will need a pipeline back to the coast and unless that will reach land on the eastern shore (unlikely) it means it is coming into port of Norfolk in Hampton Roads.

[Arctic Dave]

6. Unless it is negotiated up front then VA will get squat.

Look to LA for how much you will get screwed.

[GreenTea]

7. If they find anything.

[Statistical]

10. Well that risk is on the oil companies.

They pay for a lease upfront. Federal govt will get paid no matter what.

The question is will they share this with the states or will states get all the costs and federal govt get all the revenue.

[Bitwit1234]

9. I don't know but MARYLAND owns

the Patuxent River if it is in the Chesapeake Bay it doesn't belong to anybody by the USA>