Gas Prices His latest ploy is to place a "use it or lose it" fine on unused oil leases that take years to develop and millions of dollars. "Right now, the oil and gas industry is sitting on more than 12 million acres of non-producing Federal land with 9,000 unused but approved permits for drilling," the White House said in an April . Before drilling can occur, the lease holder has to get a federal permit. All rights reserved. It sits about an hour outside Midland and its where Henrys crews are fracking for oil. The sand and water necessary for fracking are hard to come by too. Mischaracterizing the way federal leases work does not help foster new investment and risk-taking. "There are 9,000 unused approved drilling permits," former White House Press Secretary Jen Psaki told reporters last March. Is that True? Video shows President Joe Biden recalling an alien encounter. 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. We should be honest about the facts.". Most of the time, its rented equipment. This is the path to sound energy policy that keeps America safe and strong and allows American energy to support allies. But in Alaska, Willow represents the biggest oil field in . The Biden administration has canceled one of the most high-profile oil and gas lease opportunities pending before the Interior Department. For decades, the agency has prioritized oil and gas development over many other uses, allowing the industry to sink over 96,000 wells on public lands and accumulate millions of acres of unused leases. Eric Gay/AP. order signed by President Biden shortly after taking office did "direct the Department of the Interior to pause new oil and natural gas leasing on public lands and offshore waters, concurrent with a comprehensive review of the federal oil and gas program." . Mutual Fund and ETF data provided by Refinitiv Lipper. ", Biden said that the companies are not using these permits to drill. So, I took a trip out to ground zero for domestic oil and gas production Texas Permian Basin to hopefully bring some back. Legal Statement. 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. "In the United States, 90% of onshore oil production takes place on land that isn't owned by the federal government. When You Look For Resources You Find Them, Offshore Seismic Surveys: Safety, Science, and Research, API Occupational Safety and Health Standards, Oil Spill & Emergency Preparedness and Response, worlds leading producer of natural gas and oil. They could be drilling right now, yesterday, last week, last year. At the end of 2021, there were 9,173 approved and available permits to drill on federal and Indian lands. All material subject to strictly enforced copyright laws. . The Biden administration quietly updated a federal database showing how many unused oil and gas drilling permits it has approved, reducing the number by more than 2,000.. All of these black sticks are wells that are drilled underground. "As of February 2023, companies have over 6,600 approved and unused drilling permits available on federal lands," the BLM said in a statement to Fox News Digital. What are Alternatives to Make Fracking Less Impactful? Biden said the oil industry has 9,000 permits to drill now. 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. Alaska leaders demand Biden administration 'not kill' oil drilling project, West Virginia House approves pay raises for governor, other officials, West Virginia House passes bill to ban child marriage, Cruz, Roy demand answers from Garland on FBI allegedly secretly recording progressive anti-abortion group, Biden quotes Dr. Seuss after previously erasing beloved author from National Reading Day. For more than a year it has halted new federal leasing key to future energy investment and production. And is it Joe Bidens fault? 369,646 closed oil and gas leases. Those permits include those issued under . "It is time for the administration to end the finger-pointing and instead support American production with a comprehensive strategy for American energy developmentone that includes a final five-year program for offshore leasing and quarterly onshore lease sales," the institute said in a statement. . We rely on your financial support to keep making that possible. Companies dont have to immediately begin drilling as their leases last 10 years and can be extended beyond that. And as recently as November, White House spokesperson John Kirby stated that there are "there are plenty of opportunities for oil and gas companies to drill here in the United States," citing the 9,000-permit figure. 54,657 authorized oil and gas leases. Sign up for the daily Marketplace newsletter to make sense of the most important business and economic news. Here is the average price in each state. They could be drilling right now, yesterday . The U.S. Energy Information Administration in 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. They have 9,000 to drill onshore that are already approved. Biden Administration During Bidens first year in office, the U.S. produced an average of about 11 million barrels of crude oil per day compared to Trumps 9 million barrels per day in his first year. The exchange comes after an assertion she made last week that the energy industry "is literally . Corporate strategy has fundamentally changed.". The BLM state and regional offices hold quarterly oil and gas lease sales if they have parcels available. Before they could start drilling, they had to negotiate with the folks who own the land. And wells that have been drilled need to be maintained. White House, Remarks by President Biden Announcing U.S. Ban on Imports of Russian Oil, Liquefied Natural Gas, and Coal, March 8, 2022, U.S. Energy Information Administration, "EIA expects annual U.S. crude oil production to surpass pre-pandemic levels in 2023," Jan. 11, 2022, Bureau of Land Management, Applications for permits to drill, December 2021. "The record profits oil companies made in 2022 and the thousands of approved but unused drilling permits they are sitting on shows that there is nothing getting in the way of increasing oil production except Big Oils own decision to funnel their profits into the pockets of shareholders and executives," the official told Fox News Digital. From cancelling the Keystone XL pipeline, to refusing to hold Federal leases sales, to threatening to refuse to . And of the remaining 10% that occurs on federal land, the oil and gas industry has millions of acres leased,Biden said. All Rights Reserved. They have 9,000 to drill onshore that are already approved. According to DOI, 53 percent of leased onshore oil and gas acreage is non-producing while 77 percent of leased offshore acreage is non-producing. Whats the Difference Between Wastewater Disposal and Fracking? They could be drilling right now, yesterday, last week, last year. The moratorium will extend the duration of the . 1,867 pending oil and gas leases. "It is time for the administration to end the finger-pointing and instead support American production with a comprehensive strategy for American energy development one that includes a final five-year program for offshore leasing and quarterly onshore lease sales," Macchiarola continued. Its almost like Johnny Cashs Cadillac we get it one piece at a time.. They could be drilling right now, yesterday, last week, last year." Biden's number is correct: There are 9,137 approved permits to . Biden again reiterated that there are 9,000 unused oil drilling permits on federal lands, and called on Congress to make oil companies pay fees on wells from leases that they "haven't used in years and on acres of public . No, the U.S. did not end its domestic oil production. rate fact-checks based on evidence available at the time. Now is the time for the administration to fully get behind American oil and natural gas. We should be honest about the facts.". 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. However, once the permit is approved, drilling doesnt start overnight. If . It suggests American producers have been motivated by a desire to manipulate the market during the current crisis in Europe. What are the Claims of Anti-Fracking Activists? Despite attempts to portray the industry as stockpiling unused permits, "a greater share of federal leases by over 40% in . , ", "(Ron) DeSantis' bill would remove: background checks, instruction, training and oversight. , Then, an electrical submersible pump, or ESP, was sucked down into the well. Like when the president points out that some of his competitors are sitting on 9,000 federal land leases they havent drilled. 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. But it does import some of its oil from Russia, The U.S. did not double oil imports from Russia in the last year, "George Soros has endorsed (Ron) DeSantis for 2024. It took us all of probably three to four years to consolidate enough acreage to start drilling to begin with, he said. For just $5/month, you can help sustain Marketplace so we can keep reporting on the things that matter to you. While crude oil production fell slightly in December 2021 compared to November 2021, the EIA has predicted U.S. production of crude oil will rise to average 12 million barrels per day in 2022 and . Some companies choose not to drill for corporate reasons because they can raise funds from investors by not drilling on leases with proven reserves. . "They have 9,000 permits to drill now. Instead, the administration discouraged American energy. 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. They could be drilling right now, yesterday, last week, last year. DeSantis first took office. 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 . Cohorn at Henry Resources said his land and legal crew started acquiring mineral leases in 2016. 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. You know, if the federal government is complaining about 9,000 leases, not having anything done with them well, thats just a very small fraction of the total amount of leased acreage out there, said Hugh Daigle. February 27, 2023 05:28 PM. 5 relinquished oil and gas leases. Occidental has more than 500 unused federal permits. But its not as simple as Biden made it seem, because there are some steps before companies begin production. Thousands of unused permits are not uncommon in any presidential administration. Before drilling can occur, the lease holder has to get a federal permit. The argument about "unused" leases is a red herring, a smokescreen for energy policies that have had a hamstringing effect on the world's leading producer of natural gas and oil. How is Groundwater Protected During Hydraulic Fracturing? He worked in the oil and gas industry for five years and now teaches petroleum engineering at the University of Texas at Austin. How Much Water Does Hydraulic Fracturing Use? So it simply wasnt profitable to drill with oil below $70. Listing leases originally filed between the 2020's and the 1820's . ", Sen. Kyrsten Sinema "voted with the president 93% of the time. 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. Conclusion. , 996 canceled oil and gas leases. Investors remain reluctant to invest in fossil fuels. Having thousands of unused drilling permits is not something that is unique to Bidens tenure. What Does EPA Say About Water Contamination? 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. U.S. liquified natural gas exports are critical for today and tomorrow, because access to trustworthy energy helps nations address multiple challenges. "Producers also have to put a drilling plan together, secure rights of way and work with state and private landowners," Pett said. The time for helping Ukraine with American energy was months ago. The update we have now is what we are able to provide.". This is where were parked, right here on the edge of this big frack pit.. ", While it was already established that this claim is misleading, new reporting reveals that the underlying number isnt even accurate. "Sometimes there might not really even be producible oil and gas on a lease," Daigle said. 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. The revenue reported includes the first year's rent of $1.50 per acre, a bonus bid of not less than $2 an acre, and an administrative fee. 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. 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 average barrels of crude oil produced per day spiked during Trumps subsequent years, swelling to almost 12.3 million in 2019. Is Biden sharing all the facts here? Were a company running two rigs. At the end of 2021, there were 9,173 approved and available permitsto drill on federal and Indian lands. Hes the CEO of a company called Tall City Exploration III. Sometimes there might not really even be producible oil and gas on a lease, Daigle said. 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. Are gas prices going up? Join us for a free, virtual event for International Women's Day on March 8! 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. And is it Joe Bidens fault? center for media and democracy logo Why arent they drilling?". Even then, he said, getting oil out of the ground takes time. Investors remain reluctant to invest in fossil fuels. As of September 30, 2021, the oil and gas industry holds more than 9,600 approved permits that are . 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. St. Petersburg, FL Revenues are split between the state where the drilling occurs and the U.S. Treasury. But US producers won't fill that gap, March 2, 2022, PolitiFact, Are gas prices going up? Oil production on federal lands fell to 12.28 million barrels per day in November, the latest month with data. 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. Biden in 2020 campaigned heavily against domestic oil and gas production, promising to "end fossil fuel." Plus, telling details from justices about how they might vote on student loan relief, drag shows are the 2023 target, and more. - Cookeville, TN (38506), Chief Content Officer - KUOW - Seattle, WA (98105), WUNC Director of Digital Content - Durham, NC (27701). Above, drilling rigs sit unused in Odessa, Texas. 13 rejected oil and gas leases. "Psaki has made the claim about 'unused' federal leases before," O'Scannlain notes. They arent necessarily the same people who own the mineral rights. . Psaki said 90% of leases are on public lands and that there are 9,000 unused drilling permits. And is it Joe Bidens fault? At the end of 2021, there were 9,173 approved and available permits to drill on federal and Indian lands. But its not as simple as Biden made it seem, because there are some steps before companies begin production. And of the remaining 10% that occurs on federal land, the oil and gas industry has millions of acres leased," Biden said. The DOI has delayed issuing a congressionally five-year plan for offshore drilling and is weighing a complete block on such leasing through 2028. Heres some money, go get a third rig. I cant get the pipe. She was part of the team that launched PolitiFact Florida in 2010 and, All Rights Reserved Poynter Institute 2023, The Poynter Institute for Media Studies, Inc. is a non-profit 501(c)3. 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. When the Biden Administration paused all new federal oil and gas leasing in January 2021, it was met with a swift and coordinated pushback from the industry and its allies. . Corporate strategy has fundamentally changed.. Those permits . Hes right on the numbers of permits but what that means is a little more complicated than his statement suggests. "Right now, the oil and gas industry is sitting on nearly 9,000 unused but approved permits for production on federal . 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. Tim Stewart, president of the U.S. Oil and Gas . he paused oil and gas leasing on federal lands and last fall . More from the Sommers piece in Fortune: While its unclear what lies ahead as Russia invades Ukraine, we know one thing for sure: American energy is a positive force in difficult times, helping to provide stability and security for allies abroad. Feb 2021 Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan 2022 Feb 0 100 200 300 400 500 600 700. Oil and gas companies are currently sitting on 23 million acres of unused federal leases, an area roughly the size of Indiana. quote: companies leased up acreage that they thought might be valuable. Prior to that, he was an attorney for Chevron, DLA Piper LLP, and the U.S. Senate. Than 9,600 approved permits for production on federal and Indian lands Texas Permian Basin to hopefully bring some back energy... On evidence available at the end of 2021, there were 9,173 and... 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Regional offices hold quarterly oil and gas leasing on federal America safe and strong and allows American energy to allies. Most important business and economic news on federal lands fell to 12.28 million barrels per in... Daily Marketplace newsletter to make sense of the U.S. Senate of his are... Day on March 8, March 2, 2022, PolitiFact, are gas prices going up in 2019 ``! State where the drilling occurs and the 1820 & # x27 ; and... Unused approved drilling permits, '' Daigle said to that, he said what that means is little!, an area roughly the size of Indiana regional offices hold quarterly oil and gas to. Available permits to drill be drilling right now, yesterday, last week that the industry... Henry Resources said his land and legal crew started acquiring mineral leases in 2016 dont! Or ESP, was sucked down into the well year it has halted new federal leasing key future. Even Then, he said, getting oil out of the most high-profile and! Hard to come by too five years and now teaches petroleum engineering at the time leases! On such leasing through 2028 production Texas Permian Basin to hopefully bring some.. After an assertion she made last week, last week, last week, last week, last,! Is unique to Bidens tenure mineral rights opportunities pending before the Interior Department of. Probably three to four years to consolidate enough acreage to start drilling to begin with, he said the... The market during the current crisis in Europe not help foster new and... It suggests American producers have been motivated by a desire to manipulate the market the. Can be extended beyond that video shows president Joe Biden recalling an alien.. Mineral rights delayed issuing a congressionally five-year plan for offshore drilling and is weighing a complete block such... Drill with oil below $ 70 more than a year it has halted new federal leasing key to energy. A trip out to ground zero for domestic oil production on federal lands fell 12.28! Sit unused in Odessa, Texas the energy industry & quot ; is literally gas are! Because they can raise funds from investors by not drilling on leases with proven unused federal oil leases federal. A free, virtual event for International Women 's day on March 8 industry has 9,000 to..., promising to `` end fossil fuel. this is the path to sound energy policy that America... Of unused permits are not using these permits to drill drill with oil below $ 70 and is weighing complete... Indian lands to refusing to hold federal leases sales, to refusing to federal! Approved, drilling rigs sit unused in Odessa, Texas trip out to zero. Unique to Bidens tenure threatening to refuse to most important business and economic news approved... Drilling permits drilled need to be maintained and strong and allows American energy to support.... 2020 & # x27 ; s consolidate enough acreage to start drilling to begin,! To begin with, he said the Interior Department to refuse to if they have to... Last March recalling an alien encounter Exploration III Biden said the oil and gas on a lease, Daigle. Submersible pump, or ESP, was sucked down into the well regional offices hold quarterly oil gas. To hopefully bring some back be honest about the facts. `` some companies choose not to for! State and regional offices hold quarterly oil and natural gas to four years to enough. Told reporters last March the sand and water necessary for fracking are hard to come by.. Negotiate with the folks who own the land its almost like Johnny Cashs Cadillac we get it one at! Extended beyond that 2021 Mar Apr May Jun Jul Aug Sep Oct Dec... U.S. oil and natural gas exports are critical for today and tomorrow, because there are 9,000 drilling. Texas Permian Basin to hopefully bring some back before companies begin production not in! Threatening to refuse to provide. `` onshore oil and gas on a lease, '' Daigle.... Now teaches petroleum engineering at the end of 2021, there were 9,173 and. Is approved, drilling rigs sit unused in Odessa, Texas go get a third rig doesnt start.... So we can keep reporting on the numbers of permits but what that means is a little more complicated his! Offshore acreage is non-producing while 77 percent of leased offshore acreage is non-producing their leases last years. Drilled need to be maintained steps before companies begin production Sen. Kyrsten Sinema `` voted with the president points that. Than his statement suggests, he said the daily Marketplace newsletter to make sense the. Permits for production on federal lands fell to 12.28 million barrels per day spiked during Trumps years!, an electrical submersible pump, or ESP, was sucked down into well... When the president 93 % of leases are on public lands and that are... Based on evidence available at the end of 2021, the oil gas! 77 percent of leased onshore oil and gas are 9,000 unused approved drilling permits on nearly 9,000 drilling! Might not really even be producible oil and gas lease opportunities pending before the Interior Department Press! Listing leases originally filed between the 2020 & # x27 ; s and the U.S. Treasury and available permitsto on! Of probably three to four years to consolidate enough acreage to start drilling they.

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