The state of Alaska already does something with oil royalties from state lands.
http://en.wikipedia.org/wiki/Alaska_Permanent_FundI'm of the opinion that all mineral rights should be the property of the people, and rented by auction to the highest bidder.
Once extracted, I think that the oil becomes the property of those doing the extraction, if they compensated the rest of us for the right to extract. Allowing it to be so, and to be sold on the open market, maximises the revenue from the extraction auction.
Making requirements about who the oil may be sold to is irrelevant: if the oil is sold to the chinese that is less oil they'll buy from someone else, leaving more for us to buy. Putting in such requirements just adds economic innefficiency, and doesn't increase the overall supply, or affect the overall demand, and can only raise prices.
I'm still working on researching it, but I believe that the Federal Government gives away more than enough rights that, if rented at fair market value, could pay for Social Security.
Including only fairly straightforward items, such as rights involving public lands, and public airwaves, should be enough: ~$500-600 Billion. Including more esoteric property rights, such as patents, corporate charters, and mineral rights associated with 'private' lands, should more than double that amount.
Imagine what a grand thing Social Security would be, if provided to every retired person, from an appreciating source (no pyramid scheme here), without a regressive payroll tax. Imagine how many more people would be employed, if the cost of their labor were 6.2% cheaper. Imagine how many new jobs would be created if most people got a 6.2% raise?
Interestingly, if airwaves were periodically auctioned, new broadcasting companies would have a greater opportunity to obtain broadcast rights, breaking up the oligopoly on broadcast media.
This is very good thinking, and would make a great platform for a populist candidate, as a contra to SS privatization, a contra to Corporate Welfare, and a contra to some forms of tax reform.