Thousands of unused permits are not uncommon in any presidential administration. 20006, Florida The first, by some members of the Biden administration, including White House Press Secretary Jen Psaki on Thursday, is that American oil and natural gas producers are sitting on hundreds of unused federal leases and thus do not need access to more. Psaki has made the claim about unused federal leases before. The project could produce up to 180,000 barrels of oil a day, according to the company about 1.5 percent of total U.S. oil production. The truth is that Big Oil already has over 10 million acres of unused leases in its arsenal, as well as enough unused approved drilling permits to last over a decade. The Biden Administration violated Congressional statute by halting all federal oil and gas lease sales - onshore and offshore - and is thereby laying the groundwork for a decline in federal production over time. The Biden administration has also dragged its feet on oil and gas lease sales, only holding sales when directed by either federal courts or the Inflation Reduction Act. At the end of 2021, there were 9,173 approved and available permits to drill on federal and Indian lands. Please read our Terms & Conditions, Cookies Policy and Privacy Policy before using the site. ", The White House is now attempting to ban all gas ovens and burners.. This material may not be published, broadcast, rewritten, Those permits include those issued under . That data showed that as of the end of 2021, there were 9,173 approved and available permits to drill on federal and Indian lands. Florida Senate Bill 2A does not provide "immediate relief" to homeowners dealing with high property insurance rates and "will force some constituents to pay up to 20% more. "So it simply wasnt profitable to drill with oil below $70. U.S. President Joe Biden wants oil drillers to pay penalties when federal leases go unused in an effort to prod the industry into pumping . [Follow me on Twitter at @EnergyAbsurdity] During Monday's latest gaslighting exercise the White House likes to refer to as a 'press briefing,' spokesperson John Kirby rolled out the handy '9,000 unused permits' talking poi The average barrels of crude oil produced per day spiked during Trumps subsequent years, swelling to almost 12.3 million in 2019. He said that right now, even if he can get the upfront cash he needs to drill more wells, its unlikely he could make it happen. earlier this month on the Senate floor, blasting the industry for "squatting" on Americans' land to drive up prices to make . Tomorrow's lease sale is a step in the wrong direction, and the administration needs to do better." After decades of an industry-first management approach to offshore leasing at DOI, oil and gas companies have stockpiled more than 9.3 million acres of unused, non-producing leases sitting off U.S. coasts. Kevin OScannlain is APIs vice president of Upstream Policy. Heres some money, go get a third rig. I cant get the pipe. Production peaked at 13 million barrels a day under the Trump administration. The number of "approved oil leases" (presumably Federal mineral leases) is not an answer to that question. "Its simply not true that my administration or policies are holding back domestic energy production," Biden said March 8 in a speech announcing a U.S. ban on Russian oil imports. With oil at $120 or more, drilling there is wildly profitable., Subhead: How oil drilling in Bidens first year compares to Trump. The head of the biggest U.S. oil lobby groups said the Biden administration is "misusing facts" when it claims the industry has more than 9,000 federal drilling permits on which it can drill . Those permits include those issued under Biden and those still active from Trumps administration and potentially before, said Josh Axelrod, of the National Resources Defense Council. The moratorium will extend the duration of the . ", Sen. Kyrsten Sinema "voted with the president 93% of the time. Joe Biden President Biden and top White House officials repeatedly stated last year that oil and gas exploration companies were sitting on 9,000 unused drilling permits, a figure the administration admitted was inaccurate Monday.. Gas Prices When a company acquires a lease, it makes a significant financial investment at the beginning of the lease in the form of a non-refundable bonus bid and pays additional rent until and unless it begins producing. ", Biden said that the companies are not using these permits to drill. In response to widespread criticism regarding the administration's restrictions on federal fossil fuel leasing amid all-time high gasoline prices, the White House repeatedly touted the 9,000-permit figure and argued industry had the ability to immediately begin producing. Oil and gas companies can raise funds from investors by not drilling on leases with proven reserves, said Hugh Daigle, an associate professor at the University of Texas Hildebrand Department of Petroleum and Geosystems Engineering. Get the Poynter newsletter that's right for you. Oil and gas companies can raise funds from investors by not drilling on leases with proven reserves, said Hugh Daigle, an associate professor at the University of Texas Hildebrand Department of Petroleum and Geosystems Engineering. They could be drilling right now, yesterday, last week, last year.. Why is fracking for natural gas important? On Feb. 27, 2023, a reader alerted us that the federal agency had published an updated number of the approved and available permits to drill the new total was 27% smaller, 6,653 permits. ", While it was already established that this claim is misleading, new reporting reveals that the underlying number isnt even accurate. Official govt docs expose Michelle Obamas 14 year history as a man., "Woody Harrelsons 60 seconds in the middle of his monologue was cut out of the edits released after the show., BREAKING Trump preps Marines to stop presidential coup.. The U.S. has more than 24 million acres under lease to oil and gas companies onshore close to half are not producing. This material may not be published, broadcast, rewritten, or redistributed. In total, the oil industry now holds leases to roughly 25 million acres of public lands an area approximately the size of Kentucky. "Sometimes there might not really even be producible oil and gas on a lease," Daigle said. But its not as simple as Biden made it seem, because there are some steps before companies begin production. In his quest to shift blame for rising gas prices, President Joe Biden accused oil companies of "sitting on nearly 9,000 unused but approved" drilling permits. President Joe Biden. Pavel Molchanov, an analyst at Raymond James, toldCNN Businessthat oil and gas companies do not want to drill more., They are under pressure from the financial community to pay more dividends, to do more share buybacks instead of the proverbial drill, baby, drill, which is the way they would have done things 10 years ago. Companies dont have to immediately begin drilling as their leases last 10 years and can be extended beyond that. 2023 World Oil, 2023 Gulf Publishing Company LLC. Department of the Interior They could be drilling right now, yesterday, last week, last year. Occidental has more than 500 unused federal permits. A federal judge has revoked oil and gas leases sold in the Gulf of Mexico in November, saying the Interior Department did not take into account its impact on climate change. This is all private land, which is where 90% of the oil produced in the U.S. comes from. Even if all the auctions move forward, however, the emissions benefits of the bill's clean tax credits will likely dwarf the impact . Biden has a point that the U.S. produced more during his first year than Trumps first year. Theres a lot happening in the world. Nearly three quarters of all active . ", In 2020, the oil bust created worker and supply shortages and caused companies to cut their budgets. Hes right on the numbers of permits but what that means is a little more complicated than his statement suggests. However, the unused drilling leases represent a fraction of the active permits, many of which are being used by the private sector to produce oil and gas daily, industry groups said. President Biden on Wednesday issued an executive order temporarily pausing federal oil and gas leases and setting in motion potentially longer-lasting restrictions on federal lands production of fo Feb 2021 Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan 2022 Feb 0 100 200 300 400 500 600 700. "While the cost to extract one barrel in Saudi Arabia is somewhere around $10 or $15, in West Texas it can be as high as $70," Gernot Wagner, an associate professor of environmental studies at New York University, told PolitiFact. ", "By the way, one thing I want to say about the oil companies: They talk about how we have they have 9,000 permits to drill," he added months later. Gas prices later reached record highsin June 2022, the average price for a gallon of gas in the United States hit $5 for the first time ever. "They have to be sure that the costly investment (and time) that it takes to turn a lease into a producing well is worth it.". I cant get the people to do the work, Oestmann said. Oil, Biden Has Earned 11 Pinocchios From Fact-Checkers During Coronavirus Crisis, GOP Hawks Say the Only Thing Cut From the Pentagon Will Be 'Wokeness'. Corporate strategy has fundamentally changed.". It canceled energy infrastructure, blocked development in parts of Alaska, entertained new taxes to punish the U.S. energy industry and chilled future investment by signaling that oil and gas wouldnt be part of Americas future energy mix. They could be drilling right now, yesterday, last week, last year.". Biden claimed 9,000 oil drilling permits are unused. Then, Biden administration support for robust U.S. production might have helped deter Moscow from thinking that European nations dependent on Russian energy might do less to oppose Russia the aggressor. He said not only is labor in short supply, but steel pipe and other equipment are on back order for months. Copyright 2021 - API. "Companies sometimes hold leases as a bit of a mind game with their competitors, or even just because they didnt properly assess the production potential prior to leasing due to lack of data or that sort of thing. 5 withdrawn oil and gas leases. The U.S. has more than 24 million acres under lease to oil and gas companies onshore close to half are not producing. 236.31. Are gas prices going up? Jewish Students Reported a Professor for Anti-Semitism. President Joe Biden said that his policies have not made the U.S. less equipped to withstand the impact of the ban on Russian energy imports. Tim Stewart, president of the U.S. Oil and Gas . (AP Photo / Susan Walsh / File). Then, an electrical submersible pump, or ESP, was sucked down into the well. Biden has a point that the U.S. produced more during his first year than Trumps first year. TheU.S. Energy Information Administrationin January forecasted that U.S. oil production will average 12.4 million barrels per day during 2023, surpassing the record high for domestic crude oil production set in 2019. Now is the time for the administration to fully get behind American oil and natural gas. In addition to Biden, top administration officials such as National Security Council spokesman John Kirby and former White House press secretary Jen Psaki have used the 9,000-permit talking point to argue that the oil and gas industry has "plenty of opportunities to drill here in the United States." Inform me please. The minimum royalty rate is significantly lower than those used in most states and on private land and the BLM is providing an improved return to the taxpayer by using a royalty rate of 18.75% for the leases sold in the current competitive lease sales. EIN: 41-0953924. Before drilling can occur, the lease holder has to get a federal permit. They could be drilling right now, yesterday, last week, last year." Biden's number is correct: There are 9,137 approved permits to . He unfurled a map on the bed of his big, red, muddy pickup truck. See the sources for this fact check hereand more of their fact checkshere. From a federal regulatory standpoint, once a permit is approved, industry can proceed. They could be drilling right now, yesterday, last week, last year. some 40% of the mineral acreage leased by companies goes unused . That's enough to last the industry another 10 years, by one estimate . Douglas Holtz-Eakin, an economist and president of the American Action Forum, a center-right think tank, said firms are trying to assess the durability of the global rebound. Thousands of unused permits are not uncommon in any presidential administration. Oilfield Electrification Technology Conference. President Joe Biden said that his policies have not made the U.S. less equipped to withstand the impact of the ban on Russian energy imports. forward with a plan to lock up even more of our state's land in unused oil and gas leases. Experts also suggested that drilling domestically is more costly than drilling overseas, which could further deter oil companies in the U.S. from upping production. 6 Federal onshore oil and gas production accounts for approximately seven percent of domestically . The revelation comes as a blow to Biden as he attempts to defend himself from Republican critics, who argue that the Democrat is "attacking American energy" and raising gas prices by slowing fossil fuel production. Those permits include those issued under Biden and those still active from Trumps administration and potentially before, said Josh Axelrod, of the National Resources Defense Council. FOSSIL FUEL PROFITS ARE VITAL FOR GREEN ENERGY PROJECTS DEMS ROUTINELY TOUT, "Right now, the oil and gas industry is sitting on nearly 9,000 unused but approved permits for production on federal lands," Biden remarked in March 2022. "In the United States, 90% of onshore oil production takes place on land that isn't owned by the federal government. In this case, we reached out to some of our original experts for the story, who told us Bidens overarching point remained valid, as were the caveats we mentioned in our original article. The Bureau of Land Management (BLM) revised the current number of approved applications for permits to drill (APD) which oil and gas companies are required to file once they identify a deposit on a lease that can be tapped down from an estimated 9,000 to less than 6,700. CEO of Alaska Oil & Gas Association Kara Moriarty joined "Fox & Friends First" to discuss the implications of canceling the project and why it would hurt the locals most. Is Biden sharing all the facts here? Legal Statement. (iStock). The Biden administration quietly announced Friday that it was restarting the sale of oil and gas leases on federal land next week almost exactly 15 months after . Bidens number is correct: There are 9,137 approved permits to drill on federal and Indian land, and the oil industry could use those permits and drill. Ive Heard that Hydraulic Fracturing is Linked to Cancer. But it does import some of its oil from Russia, Feb. 28, 2022, PolitiFact, The U.S. did not double oil imports from Russia in the last year, Feb. 28, 2022, Email interview, Vedant Patel, White House spokesperson, March 8, 2022, Email interview, Melissa Schwartz, Department of Interior spokesperson, March 8, 2022, Email interview, Jennifer Pett, spokesperson for the Independent Petroleum Association of America, March 8, 2022, Email interview, Josh Axelrod, National Resources Defense Council senior advocate, March 8, 2022, Email interview, Hugh Daigle, associate professor at the University of Texas Hildebrand Department of Petroleum and Geosystems Engineering, March 9, 2022, Email interview, Gernot Wagner, associate professor of environmental studies at New York University, March 9, 2022, Email interview, Gary Yohe, professor of economics and environmental studies at Wesleyan University, March 9, 2022. District of Columbia They exist. To be clear, Biden wasnt wrong about that number, but citing it as evidence that energy companies are sitting on their hands to keep prices high needs a bit more context. Video shows President Joe Biden recalling an alien encounter. Prior to that, he was an attorney for Chevron, DLA Piper LLP, and the U.S. Senate. , "They have to be sure that the costly investment (and time) that it takes to turn a lease into a producing well is worth it.". Douglas Holtz-Eakin, an economist and president of the American Action Forum, a center-right think tank, said firms are trying to assess the durability of the global rebound. Fox Business spoke with energy industry leaders and Sen. Dan Sullivan (R-Alaska) about the Biden White House's claim that 9,000 oil and natural gas drilling leases sit unused. UPDATE: On March 31, President Joe Biden announced the release of 1 million barrels of oil per day from the nation's Strategic Petroleum Reserve over the next six months. , They could be drilling right now, yesterday, last week, last year.". Oil and gas companies can raise funds from investors by not drilling on leases with proven reserves, said Hugh Daigle, an associate professor at the University of Texas Hildebrand Department of Petroleum and Geosystems Engineering. February 27, 2023 05:28 PM. Biden said that companies pumped more oil in the U.S. during his first year in office than during his predecessors first year and that we were on track for record oil production next year. Like when the president points out that some of his competitors are sitting on 9,000 federal land leases they havent drilled. Rifles were involved in 297 deaths in the U.S. in 2022 and constipation killed 2,167., Drinking or using tap water treated with chlorine is dangerous because chlorine is a poison., Joe Biden described America as the foothills of the Himalayas with Xi Jinping., Kid Rock tweeted, Some people wouldnt recognize tyranny if it slapped a mask on their face, made them stand 6 feet apart, and forced them to take a vaccine for a virus with a 99.8% survival rate., The train that derailed in Ohio was carrying over 300,000 gallons of a chemical that was banned in 1974.. When a lease is acquired, companies pay a "significant financial investment," and, if they do not get the lease producing, the company must pay an additional "rent" on the lease "until and unless it begins producing." The Mineral Leasing Act prevents one company from "locking up" federal lease acreage that is unproductive. What are the Claims of Anti-Fracking Activists? He took me to a well in the middle of this patch of land that, up until a couple of months ago, was producing a good amount of oil. Most importantly, it should complete work on a long-term plan for offshore oil and gas development, to replace the one that expires this summer. However, once the permit is approved, drilling doesnt start overnight. From a federal regulatory standpoint, once a permit is approved, industry can proceed. But a Biden administration official downplayed the alteration Monday, saying the number of unused oil and gas permits remains high. Onshore, of the more than 26 million acres under lease to the oil and gas industry, nearly 13.9 million (or 53%) of those acres are unused and non-producing. The White House did not return a request for comment. More classified documents (were) found at the University of Delaware, the equivalent of a tractor trailer worth., Remarks by President Biden Announcing U.S. Ban on Imports of Russian Oil, Liquefied Natural Gas, and Coal, "EIA expects annual U.S. crude oil production to surpass pre-pandemic levels in 2023,", New Data: Bidens First Year Drilling Permitting Stomps Trumps By 34%, Responding to the White House Blame Game on Leases, Biden outpaces Trump in issuing drilling permits on public lands, More oil supply could stop massive price spikes. Why arent they drilling?". Everything in yellow is acreage that we own and operate, he told me. During Bidens first year in office, the U.S.produced an averageof about 11 million barrels of crude oil per day compared to Trumps 9 million barrels per day in his first year. The agency explained: "This number has been updated to account for a reporting discrepancy resulting from a transition to a new database in mid-2020. Instead, the administration discouraged American energy.

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