A question for those who want to nationalize the oil companies

[RB TexLa]

What if I and everyone else that has oil under our land chose to extract the oil and sell it to a foreign private oil company that pays a higher price?

[SharonAnn]

1. That's what's currently done in Alaska. The oil is sold to Japan

even though the agreements in drilling on the North Slope were that ALL the oil would be sent to the United States.

Of course, after getting the permits, doing the drilling, and extracting the oil, the oil companies found that they could get a better price in Japan. So they got Congress to change the rules for them and they now sell all the oil to Japan.

This has been the case for many years.

I'm sure that they also plan to sell any ANWR oil to elsewhere in the world, also.

[FloridaPat]

3. That was the case from the first drop of oil. Proves the gov't is not

interested in getting off imported oil.

[tritsofme]

11. IIRC most of the crude from Alaska is heavy and sour.

And American refineries only have the capabilities to refine light sweet crude.

[Toots]

14. I think the poster was asking about private property

In Alaska no person owns water or mineral rights on their own property. It was part of the Statehood act. Private people can not do such a thing there.

[welshTerrier2]

2. Big Oil has abused our democracy

for generations, far too much of our foreign policy has been driven to benefit Big Oil ... i want to nationalize Big Oil because i do NOT believe such powerful, mega-corporations can be adequately regulated ...

i have no desire whatsoever to deprive smaller oil companies or individuals from seeking a profit ... if you do not have the clout to exercise an undemocratic influence on our government, my answer to your question is that you should be free to do as you wish with your oil ...

[bbinacan]

4. I agree

Small oil should be able to sell on the open markets.

[TahitiNut]

5. Do you think you'd own the rights to that oil?

Land "ownership" is an entitlement, usually in the form of a fee simple title. Like all entitlements, it's defined, established, and enforced by government - it's not a right which is 'natural' but an entitlement which is a legal artifice.

Next, where the titleholder to the land also has title to the possible oil, it's often bought up on speculation before anyone knows whether the oil even exists. Further, unless the property is very extensive and covers an entire oil deposit, it's highly likely that there are various plots of land with many different titleholders, some of which might be government (the People). There's not much to stop someone from sucking all the oil out from a relatively small plot of land. Even further, which titleholder is willing to accept the lowest bid for the 'oil rights'?

"If" is sometimes the largest word in the English language - and can cover some very HUGE assumptions - assumptions which often bear no resemblance to reality.

[RB TexLa]

6. one of the things you mentioned is stopped by law

"There's not much to stop someone from sucking all the oil out from a relatively small plot of land."

very illegal

[TahitiNut]

7. I think I'd need some proof of that, and ...

... explanation the pertinent circumstances. I sincerely doubt legally drilling a vertical well and extracting the oil can be challenged on some speculative apportionment of the geological extent of the oil field's volume at various places.

Nonetheless, I see nothing substantial that'd stop government (of the People) in asserting eminent domain on all oil beneath the territorial US. Smaller government entities obtain easements with ease all the time.

[RB TexLa]

8. The exploration company is going to know exactly how much of a possible

field is under what land before they drill.

[MazeRat7]

9. You will need the "oil & mineral" rights first...

Those are generally not included in a common "deed" to the land. I don't know all the legal aspects, but being from Texas and having been raised in an oil town by an oil family, I do know you need those rights more than actual title to the land. Generally speaking, most independent drillers will purchase the oil & mineral rights and then lease the area they wish to explore (drill) from the land owner.

MZr7

[RB TexLa]

10. I own the mineral rights to the land I own as well as other land I do not

own.

[MazeRat7]

12. Well if you've got the land patents... get to drilling...

And if you don't have those, at the very least I hope you have title insurance for those mineral rights. ;)

MZr7

[RB TexLa]

13. it's all being drilled