A New Oil Leasing Scheme: Oil For America - 18Jun2008

We must begin to produce more oil. But let's use the desirability of these leases to move the market and sane policies forward. “Oil For America” Leases:

1. Any oil and oil products produced under the new leases must be sold and used in America. Other countries cannot compete to buy products of “Oil for America”.
2. Set the selling price of the oil and oil products at cost plus a fixed gross profit. Insulate the price from commodities markets. As the quantity of oil produced under “Oil for America” increases, the volatility of the oil market will go down.
3. Give the right of first refusal for purchase of the leases to transportation and energy companies which commit to lead in achieving our energy and environmental goals.
4. Place railroads, interstate truckers, local truckers, and vehicles with the highest gas mileage first in line to buy oil products from “Oil for America.” This will reduce the inflationary effects of high fuel prices on the rest of the economy.
5. Accelerate the immediacy of the effect of “Oil for America.” a. Accept as a portion of lease payment commitment of extant crude oil and oil products for sale at the going “Oil for America” price. b. Move prospective lease purchasers toward the front of the line who agree to convert previously acquired leases to “Oil for America” leases.