Oil Policy

President Obama, like his predecessors, has no real oil or energy policy. Today's efforts to open up some restricted offshore drilling is purely political candy, lacking substance and effectiveness. Here's my complete plan that would work for everybody:
Current leases would be honored and grandfathered as they currently stand. This would please the oil companies.
No drilling allowed within 10 miles of shore, including the shores of populated outlying islands. This should please the tourist industry and environmentalists.
Between 10 and 50 miles off shore the choice would be left entirely to the appropriate state. Royalties and leases would be negotiated by that state, though no leases would be permitted to be sold to foreign owned companies. Any operations would be subject to regulation and inspection by both state and federal environmental authorities. The state and federal government would be allowed to declare certain vital areas (such as shipping lanes, fisheries, reefs, etc...) off limits. This should please the states.
From 50 to 200 miles off shore, royalties and leases would be negotiated by the U.S. Govt. Leases would be made available only to U.S. owned and taxpaying companies. The federal government would regulate and inspect all facilities/operations and would have the authority to declare certain vital areas off limits. This should please taxpayers, consumers, and oil companies.
Oil on federal lands (Think ANWAR) would not be made available for commercial drilling. Drilling for oil and gas reserves here would be exclusively done by the Army Corps of Engineers. Extracted oil and gas would be entirely sent to our national reserves. This should please the military and taxpayers.
As part of the national reserves, the Corps of Engineers would also operate refineries to turn that crude oil into the fuel needed for our military vehicles, planes, and ships. This would free up more commercial production capacity for consumer use and guarantee a fuel source for the military. Fuel for the military would be blended with biofuels. This should please the military, taxpayers, consumers, environmentalists, and farmers.
Reserve policy would be to cease drilling for oil and buy foreign oil only when the price dropped below $50 a barrel as a means of propping up the price in a down market and protecting domestic supply. This would please oil companies. Furthermore, excess reserves would be sold when the price exceeded $100 per barrel as a means of lowering the price in an inflated market. This would please consumers and taxpayers.
A similar policy to curb volatile natural gas markets would be followed.