Theres a lot happening in the world. Oil production on federal lands fell to 12.28 million barrels per day in November, the latest month with data. Those companieswhich determine their drilling plans more than a year in advancehave also faced labor shortages under Biden, with the oil industry comprising roughly 12,400 fewer workers last year than it did prior to the coronavirus pandemic. "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. 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 . 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. But its not as simple as Biden made it seem, because there are some steps before companies begin production. Photo of electric charging station powered by diesel generator is emblematic of the electric vehicle movement. From cancelling the Keystone XL pipeline, to refusing to hold Federal leases sales, to threatening to refuse to . Oilfield Electrification Technology Conference. 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. The update we have now is what we are able to provide.". Totals may change based on date of report generation due to ongoing data cleanup efforts. In total, the oil industry now holds leases to more than 25 million acres of public lands . Biden complained about unused leases in his bid to spur supply and reduce gasoline prices. 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. [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 President Biden says he wants more domestic oil production but he is doing nothing positive to make that happen. All rights reserved. At the end of 2021, there were 9,173 approved and available permits to drill on federal and Indian lands. Sometimes there might not really even be producible oil and gas on a lease, Daigle said. 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. re: 9000 unused oil leases. After Joe Biden became vice president, at the behest of his father, he gave his uncle, Frank H. Biden, a Purple Heart for serving in the U.S. military during World War II. The U.S. has more than 24 million acres under lease to oil and gas companies onshore close to half are not producing. President Joe Biden. Biden routinely responded to that charge by accusing oil and gas companies of "sitting on nearly 9,000 unused but approved permits for production on federal lands," a talking point that is now debunked. "These are the facts. 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. Biden has a point that the U.S. produced more during his first year than Trumps first year. You rely on Marketplace to break down the worlds events and tell you how it affects you in a fact-based, approachable way. Sign up for the daily Marketplace newsletter to make sense of the most important business and economic news. We should be honest about the facts.". 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. We should be honest about the facts.. They have 9,000 to drill onshore that are already approved. 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. 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 . ", "Ron DeSantis voted to cut $473 billion from Medicare. [9] As a result, the moratorium on new leases will not impact the production of oil and gas in the short term as drilling will likely . Pavel Molchanov, an analyst at Raymond James, told CNN Business that "oil and gas companies do not want to drill more. Source: Bureau of Land Management data. There are more than 37,496 active oil and gas leases nationwide, meaning more than 75% are in use, according to the latest Bureau of Land Management (BLM) data. They could be drilling right now, yesterday, last week, last year. Powered and implemented by FactSet Digital Solutions. Now is the time for the administration to fully get behind American oil and natural gas. "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. I stopped his Election from being stolen. There is actually an incentive for the companies not to develop these resources because for publicly traded companies, these reserves get reported and influence market valuation, Daigle said. District of Columbia With oil at $120 or more, drilling there is wildly profitable.". 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. 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. Is Biden sharing all the facts here? 369,646 closed oil and gas leases. 20006, Florida From a federal regulatory standpoint, once a permit is approved, industry can proceed. Joe Biden: The oil industry has "9,000 permits to drill now. Our only agenda is to publish the truth so you can be an informed participant in democracy. 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. Private property is also where almost all of the oil in this part of Texas comes from. At the same time, this is a really profitable business, especially with West Texas Intermediate trading at close to $100 a barrel. Those permits include those issued under . Psaki said 90% of leases are on public lands and that there are 9,000 unused drilling permits. . According to the federal government's analysis, around 1.1 billion barrels of oil and 4.4 trillion cubic feet of natural gas could be developed as a result of this sale. Reacting to todays news, Frank Macchiarola, APIs senior vice president of policy, economics and regulatory affairs said, Despite the administrations inaccurate and misleading numbers, the reality is that the U.S. natural gas and oil industry is confronting the global energy crisis by continuing to work to meet the energy needs of U.S. consumers and our allies abroad. "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. Mischaracterizing the way federal leases work does not help foster new investment and risk-taking. Why is fracking for natural gas important? 801 3rd St. S Key facts about federal leases: The argument about unused leases is a red herring, a smokescreen for energy policies that have had a hamstringing effect on the worlds leading producer of natural gas and oil. "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 . March 2, 2021, PolitiFact, No, the U.S. did not end its domestic oil production. Companies have to contract rigs to drill the wells, and build a sufficient inventory of permits before rigs are contracted, said Jennifer Pett, a spokesperson for the Independent Petroleum Association of America, a trade group that represents oil and natural gas producers. 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. He said not only is labor in short supply, but steel pipe and other equipment are on back order for months. 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. They exist. 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. The oil and gas industry has a substantial number of unused permits to drill onshore. Having thousands of unused drilling permits is not something that is unique to Bidens tenure. Nearly three quarters of all active . They could be drilling right now, yesterday, last week, last year.. All Rights Reserved. At the end of 2021, there were 9,173 approved and available permits to drill on federal and Indian lands. I sent in the FBI and the U.S. 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.. The BLM's current lease sales and NEPA process have included a 30-day scoping period, 30 . For nearly a year, the Biden administration has attempted to redirect scrutiny over its slow walking of federal oil and gas leases by chastising U.S . Companies have to contract rigs to drill the wells, and build a sufficient inventory of permits before rigs are contracted, said Jennifer Pett, a spokesperson for the Independent Petroleum Association of America, a trade group that represents oil and natural gas producers. Hes right on the numbers of permits but what that means is a little more complicated than his statement suggests. "There are 9,000 unused, approved drilling permits. So you get the mineral position leased, then you have to go to the surface owner and negotiate good terms and a good understanding of how youre going to use his surface and make him happy, so that you can come out here and start doing all the stuff that we have to do to get to and from our wells, Cohorn said. "In Utah alone, the industry is sitting on more than 1.7 million acres of unused federal oil and gas leases on some of our nation's wildest and most culturally significant public lands . Thomas Catenacci is a politics writer for Fox News Digital. 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. However, once the permit is approved, drilling doesnt start overnight. Oestmann said he really doesnt like the way the Biden administration talks about his industry. But its not as simple as Biden made it seem, because there are some steps before companies begin production. The Biden administration quietly updated a federal database that shows how many unused oil and gas drilling permits that it has approved, reducing the number by more than 2,000. American-made oil and gas are the leading energy sources running the U.S. economy and, when exported, provide significant support for economies around the world. Meanwhile, its been 242 days since the Department of the Interior allowed the five-year offshore leasing program to expire, and the administration held just one quarterly lease sale in 2022 after not holding any in 2021, as required by law. Hes right on the numbers of permits but what that means is a little more complicated than his statement suggests. It sits about an hour outside Midland and its where Henrys crews are fracking for oil. Marketplace is a division of MPR's 501 (c)(3). He contended that the onus is on U.S. oil and gas companies that have permits to begin drilling, but havent started. 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. Most of the time, its rented equipment. DeSantis first took office. ", "(Ron) DeSantis' bill would remove: background checks, instruction, training and oversight. 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. Then, an electrical submersible pump, or ESP, was sucked down into the well. And the bottom line is, if people like Mike Oestmann and Patrick Cohorn could drill more, they would. 2023 World Oil, 2023 Gulf Publishing Company LLC. Before they could start drilling, they had to negotiate with the folks who own the land. 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. 236.31. 1,867 pending oil and gas leases. Gas prices are high and up another 7 cents nationwide. Its almost like Johnny Cashs Cadillac we get it one piece at a time.. President Biden strongly encouraged made-in-the-USA production during his State of the Union address this week but omitted home-grown oil and gas. Then Biden pivoted to point the finger at the industry: "In the United States, 90% of onshore oil production takes place on land that isnt owned by the federal government. But one year after announcing a halt to any new federal oil and gas leasing, Biden has outpaced Donald Trump in issuing drilling permits on public lands.After setting a record for the largest . 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. Department of the Interior As of September 30, 2021, the oil and gas industry holds more than 9,600 approved permits that are . The American Petroleum Institute admonished the administration for its "inaccurate and misleading numbers" and called on Biden to "support American production.". But a Biden administration official downplayed the alteration Monday, saying the number of unused oil and gas permits remains high. "In the United States, 90% of onshore oil production takes place on land that isn't owned by the federal government. In other words, 9,000 chances to increase the supply of oil and gas and drive down prices. The BLM, a subagency of the Department of the Interior (DOI), blamed the revision on a Trump-era technical change that it hadn't properly accounted for. Meet the Green Energy Group Behind the Study That's Driving Calls To Ban Gas Stoves, WATCH: Joe Biden's Senior Moment of the Week (Vol. They could be drilling right now, yesterday, last week, last year.". (iStock). What are Alternatives to Make Fracking Less Impactful? The numbers on oil and gas leasing in Nevada over the last several years show us how broken the federal leasing program is. 25). FACT CHECK: Is Tom Brady's New Girlfriend Jewish? Before drilling can occur, the lease holder has to get a federal permit. Now, the oil industry is sitting on a remarkable 9,173 approved, but unused, federal lands drilling permits. 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. We rely on your financial support to keep making that possible. BLM drilling approvals tapered off after a big jump in 2021. ", "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. Now, the oil industry is sitting on a remarkable 9,173 approved, but unused, federal lands drilling permits. "They have 9,000 permits to drill now. Above, drilling rigs sit unused in Odessa, Texas. . Jen Psaki vs. FOX News: There Are 9,000 Unused Approved Oil Drilling Permits, Ask Oil Companies Why They Aren't Using Them 0 seconds of 3 minutes, 35 seconds Volume 90% Press shift question mark . Still, the Biden administration maintained its anti-oil rhetoric. "These are the facts. 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. 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. 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. "This number has been updated to account for a reporting discrepancy resulting from a transition to a new database in mid-2020.". American oil and gas producers are able and willing to do their part to support American energy leadership, including providing energy that can help allies abroad. But US producers won't fill that gap. "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. The Bureau of Land Management, which oversees oil and gas development on federal lands, updated its tally in an end-of-the-year report that shows that figure instead should have been much less, standing at about 6,600 untapped permits as of this month.. he paused oil and gas leasing on federal lands and last fall . The sand and water necessary for fracking are hard to come by too. A crew of roughnecks were on a platform sending metal pipes down the well to try to get it unclogged. For just $5/month, you can help sustain Marketplace so we can keep reporting on the things that matter to you. 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