For perspective, Doug Ackerman, President of the New Mexico Oil and Gas Association, said it takes upwards of 12 months to get the 30-50 permits required to drill a single well during a House Natural Resources subcommittee hearing earlier this month. They could be drilling right now, yesterday . 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 American Petroleum Institute admonished the administration for its "inaccurate and misleading numbers" and called on Biden to "support American production.". 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. center for media and democracy logo 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 . First, drillers have to build roads to get the crews and equipment out there. Biden complained about unused leases in his bid to spur supply and reduce gasoline prices. The average barrels of crude oil produced per day spiked during Trumps subsequent years, swelling to almost 12.3 million in 2019. Wednesday's Energy Absurdity of the Day: Is it '9,000 Unused Leases' or '9,000 Unused Permits?' The White House Doesn't Seem to Know. They arent necessarily the same people who own the mineral rights. At the same time, this is a really profitable business, especially with West Texas Intermediate trading at close to $100 a barrel. 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. 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. The lengthy process to develop them from a lease often is extended by administrative and legal challenges at every step along the way. 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. "Families cant afford that companies sit on their hands. Having thousands of unused drilling permits is not something that is unique to Bidens tenure. 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. Biden claimed 9,000 oil drilling permits are unused. This is all private land, which is where 90% of the oil produced in the U.S. comes from. The oil and gas industry has a substantial number of unused permits to drill onshore. They could be drilling right now, yesterday, last week, last year. 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. They have 9,000 to drill onshore that are already approved. The EIN for the organization is 59-1630423. As Sommers noted in a recent blog, the administration should provide clarity on federal leasing and permit energy infrastructure. Despite attempts to portray the industry as stockpiling unused permits, "a greater share of federal leases by over 40% in . Most of the time, its rented equipment. March 2, 2021, PolitiFact, No, the U.S. did not end its domestic oil production. But its not as simple as Biden made it seem, because there are some steps before companies begin production. From a federal regulatory standpoint, once a permit is approved, industry can proceed. . They exist. Many of the drilling permits held by industry and 60 percent of the acreage leased to oil producers sits unused, she said. Closer to downtown Midland, Mike Oestmann drove me around a frack site to see how things are progressing. Hes right on the numbers of permits but what that means is a little more complicated than his statement suggests. 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. Production peaked at 13 million barrels a day under the Trump administration. "Theyre not drilling. Joe Biden Get the latest updates from the 2024 campaign trail, exclusive interviews and more Fox News politics content. . The average barrels of crude oil produced per day spiked during Trumps subsequent years, swelling to almost 12.3 million in 2019. Revenues are split between the state where the drilling occurs and the U.S. Treasury. Market data provided by Factset. This is where were parked, right here on the edge of this big frack pit.. 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. 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. It has become a line the White House pivots to when pressed to explain why it isnt doing more to support American oil and gas production with soaring demand putting upward pressure on prices and with much of Europe at the mercy of its top energy provider, Russia. Developing a lease takes years and substantial effort to determine whether the underlying geology holds commercial quantities of oil and/or gas. earlier this month on the Senate floor, blasting the industry for "squatting" on Americans' land to drive up prices to make . U.S. Energy Information Administration, U.S field production of Crude Oil, Center for Biological Diversity, New Data: Bidens First Year Drilling Permitting Stomps Trumps By 34%, Jan. 21, 2022, Western Energy Alliance, Responding to the White House Blame Game on Leases, March 4, 2022, Washington Post, Biden outpaces Trump in issuing drilling permits on public lands, Jan. 27, 2022, CNN, More oil supply could stop massive price spikes. "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. Oilfield Electrification Technology Conference. And is it Joe Bidens fault? Psaki said 90% of leases are on public lands and that there are 9,000 unused drilling permits. From cancelling the Keystone XL pipeline, to refusing to hold Federal leases sales, to threatening to refuse to . 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. Washington, DC Previously, he worked as a reporter for Axios, where he covered, Amy Sherman is a staff writer with PolitiFact based in South Florida. All Rights Reserved. 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. Feb 2021 Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan 2022 Feb 0 100 200 300 400 500 600 700. 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 . And of the remaining 10% that occurs on federal land, the oil and gas industry has millions of acres leased," Biden said. ", Sen. Kyrsten Sinema "voted with the president 93% of the time. Eric Gay/AP. We should be honest about the facts.". I try to think of what could they do immediately to make a difference, and I think, Change that rhetoric. Thats an easy thing to do, he said. Legal Statement. In addition, DOI has issued 7,700 unused drilling permits. Then again, do Fox News viewers care? How is Groundwater Protected During Hydraulic Fracturing? Quotes displayed in real-time or delayed by at least 15 minutes. Some companies choose not to drill for corporate reasons because they can raise funds from investors by not drilling on leases with proven reserves. | Terms & Conditions | Privacy, Psaki has made the claim about unused federal leases, Pipeline Strategic Data Tracking System (PSDTS). The moratorium represents a step further than Secretarial Order No. All of these black sticks are wells that are drilled underground. 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. But its not as simple as Biden made it seem, because there are some steps before companies begin production. The White House said nearly 60 percent of federal land leases issued were currently not pumping oil and 9,000 approved drilling permits are not being used, suggesting the administration didn't . 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. How Much Water Does Hydraulic Fracturing Use? Thousands of unused permits are not uncommon in any presidential administration. This is exactly what the worlds leading producer of natural gas and oil should do, especially in times of turbulence. 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. Those permits include those issued under . 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. "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. It suggests American producers have been motivated by a desire to manipulate the market during the current crisis in Europe. This is false. "This number has been updated to account for a reporting discrepancy resulting from a transition to a new database in mid-2020.". Biden Administration I sent in the FBI and the U.S. ", "It's President Biden who is proposing to cut Medicare Advantage. 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. In total, the oil industry now holds leases to more than 25 million acres of public lands . However, once the permit is approved, drilling doesnt start overnight. A frack pit is basically a pond full of water thatll be used to help force oil out of the ground. "These are the facts. The U.S. has more than 24 million acres under lease to oil and gas companies onshore close to half are not producing. 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. And any company that wanted to start drilling on those 9,000 federal leases would face the same problems. The U.S. has more than 24 million acres under lease to oil and gas companies onshore close to half are not producing. (AP Photo / Susan Walsh / File). 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. 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. . At the end of 2021, there were 9,173 approved and available permits to drill on federal and Indian lands. American Petroleum Institue February 27, 2023. 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. "There are 9,000 unused, approved drilling permits. He contended that the onus is on U.S. oil and gas companies that have permits to begin drilling, but havent started. ", Sen. Marco Rubio "helped write the law to raise prescription prices.". 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. a bipartisan bill with Senator Chuck Grassley of Iowa to modernize the federal oil and gas program's outdated . forward with a plan to lock up even more of our state's land in unused oil and gas leases. Corporate strategy has fundamentally changed.". 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. All rights reserved. - Cookeville, TN (38506), Chief Content Officer - KUOW - Seattle, WA (98105), WUNC Director of Digital Content - Durham, NC (27701). The numbers on oil and gas leasing in Nevada over the last several years show us how broken the federal leasing program is. The update we have now is what we are able to provide.". 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