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Drill and Cap!

Drill and Cap! What does that mean?

Should we be using up our limited oil resources in a time when the world supply of oil is sufficient for our needs and the rest of the world's needs? We have only 3% of the world's oil reserves but we use 24%. But remember we perform many tasks to protect the world. We protect the sea, protect air space and travel over land to protect other countries. As long as we perform these tasks we deserve to use more oil than we have in our reserves. I think most of the world thanks us.

But yes, we must cut back on our oil use. We need to get back to where our resources can provide all the oil that we utilize on the home front. But in the mean time, do we use up our oil? As long as we can afford to pay world prices, then it is best for us to use other nation's oil reserves instead of ours.

But what we should do in have an available reserve capacity in the case of world supplies being cut off. Our own protection and world protection should be our priorities. So I propose "Drill and CAP".

Drill and Cap is the philosophy of drilling for oil and then capping off the well until the emergency rises that we need the oil. The national oil reserve does the same function but has limited supply and would not supply enough oil for our own consumption over an extended period of time. If we have Capped capacity, then using those resources could carry us through the tough times.

I propose that the government have a lottery for the oil leases, off-shore and on-shore. The winners of these leases would drill for oil. They would be able to produce enough oil to recover their cost plus eight percent (8%) profit. They would maintain the capped well heads, off-shore and on-shore, and they would be able to pump enough oil each year or two to recover their maintenance cost plus the 8% profit.

When we need the oil, then the government would add taxes to recover the lease fees that were not collected up front.