My Guess as to What Venezuelan Oil Means to the USA

[Mike Ault]

How is that socialism? The money is shared with the state on Federal land. And the state is awarding the citizens with that windfall instead of finding projects for the sake of spending money. That's a government practicing capitalism.

How about sharing the profits from all offshore oil operations on US territory with all the people of the United States then? Would you consider that socialism? And if so, how would that differ from what's going on in Alaska?

 

[Terrel L. Shields]

How about sharing the profits from all offshore oil operations on US territory with all the people of the United States then?

The royalties paid offshore are paid out to states and into the US Treasury meaning it is money that is not coming out of the pocket of the taxpayer rather benefits the taxpayer. The oil industry basically funds your home state's education system. The fact there is a tangible benefit to money generated by government does not make it socialism. Land owned by the state is the states to benefit from and in benefitting from it, it is an expense the citizens do not bear. Socialism would do what Venezuela did. Nationalize everything then not know how to operate nor maintain it.

Here oil is cheap in comparison to our average income. Gasoline in Venezuela used to be nearly free in terms of an average salary. Today it's .84 Bolivars per LITER. In US dollars that is 2 cents for a Bolivar. So, it is cheap in dollar terms but in real terms in Venezuela the annual INCOME of a citizen is only $24 US.

So, oil royalties provide Texans with a big chunk of the expenses they pay. There is a reason you have no income tax and its oil. Next the income generated offsets the money spent by government. And cheap energy drives the economy. If California prices were spread over the US, we'd be in a depression.

 

[Mike Ault]

The royalties paid offshore are paid out to states and into the US Treasury meaning it is money that is not coming out of the pocket of the taxpayer rather benefits the taxpayer. The oil industry basically funds your home state's education system. The fact there is a tangible benefit to money generated by government does not make it socialism. Land owned by the state is the states to benefit from and in benefitting from it, it is an expense the citizens do not bear. Socialism would do what Venezuela did. Nationalize everything then not know how to operate nor maintain it.

Here oil is cheap in comparison to our average income. Gasoline in Venezuela used to be nearly free in terms of an average salary. Today it's .84 Bolivars per LITER. In US dollars that is 2 cents for a Bolivar. So, it is cheap in dollar terms but in real terms in Venezuela the annual INCOME of a citizen is only $24 US.

So, oil royalties provide Texans with a big chunk of the expenses they pay. There is a reason you have no income tax and its oil. Next the income generated offsets the money spent by government. And cheap energy drives the economy. If California prices were spread over the US, we'd be in a depression.

Nationalism-Socialism of their oil resources worked well for the people of Saudi Arabia, didn't it?