Natural Resources…. Montana’s Path To Prosperity A Presentation by Eric Olsen Presented at The First Annual Tea Party Convention, Friday, February 18, 2011
Why are Natural Resources Undeveloped in Montana 1.Insufficient supplies of oil, gas, timber, minerals and coal? 2.Low commodity prices? 3.Low Demand for Commodities? 4.Poor economic conditions? 5.Montana Constitution? 6.Government Policies & Interference? 7.Environmental regulations, MEPA?
First day in the rest of your prosperous life in the State of Montana
Montana Statistics o Population at 1 million Rank 44 o Labor million Rank 44 o Personal Income/Capita $35,000 Rank 36 o $36 billion Rank 49
Montana Unemployment
Oil and Natural Gas Production Tax Revenue Collections
Insufficient supplies of oil, gas, timber, minerals coal Crude Oil o Reserve Potential > 1 billion barrels o Current Production at 68,000 bbls/day---50 yrs o Current activity 10 rigs o # Workers/Avg Pay-1400+/$65,000 o Tax income to MT $100 million/yr o Royalty burdens-$320 million-$48 million to MT o Total State Revenue s-Oil- $148 million
Insufficient supplies of oil, gas, timber, minerals coal Natural Gas o Reserve Potential >1 trillion cubic feet o Current Production at 288 million cf/day---10 yrs o Current activity 5 rigs o # Workers/Avg Pay-1400+/$65,000 o Tax income to MT $22 million/yr o Royalty burdens-$63 million-$10 million to MT o Total State Revenues –O&G- $180 million
Insufficient supplies of oil, gas, timber, minerals coal Coal o Reserve Potential >120 billion short tons o Current Production at 45 million st/yr>1000 yrs o Current activity 5 major mines o # Workers/Avg Pay-1147+/$74,000 o Tax income to MT $11 million/yr o Royalty burdens-$---million-$--- million to MT o State Revenues –O&G&Coal- $191 million
Insufficient supplies of oil, gas, timber, minerals coal Minerals o Reserve Potential > $6 billion o Current Production at $600 million/yr>10 yrs o Current activity 263 mines o # Workers/Avg Pay-5200/$70,000 o Tax income to MT $7 million/yr o Royalty burdens-$ 1.3 million-$1 million to MT o State Revenues –O&G&Coal&Minerals- $199 million
Insufficient supplies of oil, gas, timber, minerals coal Timber o Reserve Potential > 10 billion board feet o Current Production at 300 million bf/yr>30 yrs o Current activity --- mills o # Workers/Avg Pay-7000/$32,000 o Tax income to MT $22 million/yr o Royalty burdens-$ -- million-$-- million to MT o State Revenues –O&G&Coal&Minerals&Timber- $221 million
US Oil Consumption Sources 4.4 billion bbls/year $300 billion/year
BHO Energy Plan Exxon controls approx. 2% of world oil supply
Conclusions o Government Rules, Regulations, Taxes, hamper oil developments o Government & environmental policies obstruct oil exploration o Government can create shortages but cannot create opportunity with policy. o Enhanced resource development could add $200+ billion to MT revenues
Hope & Change Significant natural resource potential exists in MT in oil, gas, coal, minerals & timber HOPE is that public awareness increases as to the benefit of hydrocarbon fuels CHANGE will be to create a real Montana Natural Resource Plan Improper planning makes for very poor performance
So Please Plan Ahead
If it weren’t for bad luck?