Aaj ka Gyaan: Why US underwent a massive Oil production boom 

Lil’ Back story:
So there is something called as Mineral Rights Private Ownership – what that basically means is if you end up finding oil, diamonds, gold (i.e. any raw materials of important value) under the land on which your house is build, it should belong to you – the private owner of the land. EXCEPT in India – those minerals belong to the state – i.e. the state government where you are living. Doesn’t matter if you are the land owner. WHY? Because when the British left us, they gave the ownership of the land to all the princely states which then turned out to be the states that we live in. 

Hmm Nandoo, interesting but why are you telling me this?
Yes, yes we are getting to the point – so you know how we are covering 6 interesting topics across 6 days on 1 country – US for this time? 

Well, the US is the only country in the world which allows for Mineral Rights Private Ownership – which means if you find oil under your land, it is yours! You can sell it however you want to! 

Why is this relevant to this story? 
Well because US is now the #1 Oil producer in the world – beating both Russia and Saudi Arabia. WHY? Because of Private Ownership of Mineral Rights – you see, to become oil independent and not rely on any outside countries for their oil supplies, the US passed a regulation that allowed regular folks to scan and mine for oil if they find it under their land OR sell it to private oil companies and receive royalty for all the oil that gets pulled & sold.  Either way, if you live under a land that has oil, you are making $$$$. It’s a win-win for both the land owner as well as US that has now raced to the top of the leader board with it’s oil production! 

Coming back to India, what is the situation again? 
Tricky to say the least. If it’s an offshore oil, mineral deposit (i.e. in the oceans and seas) then it belongs to the Central Govt. If it’s an onshore oil, mineral deposit (i.e. under your land) then it belongs to the State Govt. UNLESS, you get the license to get the deposits out, you can get them cleaned and distilled from the earth’s sediments and you have paid for the minerals to the State Govt – ALL of which either cost a gazillion dollars OR are so bureaucratic that it will never happen for you!  

Bottomline:
Mineral rights is a very interesting topic especially when it involves finding, selling & making money from oil. While our mineral rights ownership are not citizen friendly, it might help that we do not have that much oil set up under our land in the first place – so I guess that’s a good thing? 

Tomorrow’s Gyaan:
What Lobbying is & How it became a $3B industry in the US

#22 Why US Underwent A Massive Oil Boom

Nandoo