Kontiki: do you?
Oil companies either buy mineral rights, in which case they don't pay royalties, or they set up long term contracts where royalties are paid. The royalties in these long term contracts don't vary with the price of crude.
As for the 1 billion barrel figure, you're right. It was a little over 900 million, and I got it from their annual report. That's why I qualified it with *almost*.
*edit: obviously, new contracts are going to have higher royalties, and I don't know what percentage of their contracts are new.
Listen, you guys can justify and rationalize it all you want to. The fact is, in 1998 I was paying 85 cents a gallon for gas. If you think that some how costs have risen almost 4 fold in less than ten years, then be my guest
Oil companies either buy mineral rights, in which case they don't pay royalties, or they set up long term contracts where royalties are paid. The royalties in these long term contracts don't vary with the price of crude.
As for the 1 billion barrel figure, you're right. It was a little over 900 million, and I got it from their annual report. That's why I qualified it with *almost*.
*edit: obviously, new contracts are going to have higher royalties, and I don't know what percentage of their contracts are new.
Listen, you guys can justify and rationalize it all you want to. The fact is, in 1998 I was paying 85 cents a gallon for gas. If you think that some how costs have risen almost 4 fold in less than ten years, then be my guest

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