In the previous election cycle when I ran for School Board and the City Council, I was attacked viciously and unmercifully by anonymous and faked named individuals like Ann Lidiot. They were vehemently opposed to any type of oil drilling in the Baldwin Hills, be it “environmentally safe” or not. It did not matter that my intent was to raise oil royalties to help fund our schools.
As a consequence of demagoguery along with the ineptitude and out-of -ouch public relations department of The oil drilling company PXP, at least 2,000 Culver City voters will have a knee-jerk reaction to voting against anyone who would even suggest any type of drilling in the Baldwin Hills, no matter the reason.
Okay, I get it. I am aware of the voters’ desires. The issue of oil drilling in the Baldwin Hills is a moot point now.
However, my original intent was to raise money for schools by raising royalties on the local level. Since that cannot happen because of the vociferous opposition to oil drilling under Culver City, I would like to advocate that there be a statewide progressive windfall profit tax against all the oil companies, with the added revenues being allocated to our schools.
The Culver City School Board can pass a resolution to endorse a progressive windfall profits tax on oil companies, with the money going to our schools. The windfall profits tax would capture a share of the profits over the cost of producing a barrel of oil.
According to July 28, 2009, article in Reuters, the cost of pumping a barrel of oil out of the ground depends on a variety of factors, including the size and accessibility of the field.
Saudi Arabian crude is the cheapest in the world to extract because of its location near the surface of the desert and the size of the fields, which allow economies of scale.
The operating cost (stripping out capital expenditure) of extracting a barrel in Saudi Arabia has been estimated to be around $1 to $2, with a total cost (including capital expenditure) $4 to $6 a barrel.
In California, depending on the field, costs can range from $15-$60. Any price above that is pure profit for the oil companies.
I think the oil companies should share the profits with our schools. I think the School Board should endorse a resolution advocating the progressive windfall profits tax.
Mr. Zirgulis, an announced candidate for the School Board, may be contacted at zirgulisr@yahoo.com
