unused federal oil leases

For just $5/month, you can help sustain Marketplace so we can keep reporting on the things that matter to you. These are 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. "Sometimes there might not really even be producible oil and gas on a lease," Daigle said. Its almost like Johnny Cashs Cadillac we get it one piece at a time.. He worked in the oil and gas industry for five years and now teaches petroleum engineering at the University of Texas at Austin. "In the United States, 90% of onshore oil production takes place on land that isn't owned by the federal government. Were a company running two rigs. And of the remaining 10% that occurs on federal land, the oil and gas industry has millions of acres leased," Biden said. ", While it was already established that this claim is misleading, new reporting reveals that the underlying number isnt even accurate. This fact check was originally published by PolitiFact, which is part of the Poynter Institute. "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. 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. Having thousands of unused drilling permits is not something that is unique to Bidens tenure. Our only agenda is to publish the truth so you can be an informed participant in democracy. 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., In 2020, the oil bust created worker and supply shortages and caused companies to cut their budgets. Producers also have to put a drilling plan together, secure rights of way and work with state and private landowners, Pett said. Hes right on the numbers of permits but what that means is a little more complicated than his statement suggests. All last summer, the administration called on OPEC+, the oil cartel, to increase its production more rapidly in the face of rising energy costs, bypassing American producers. "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. 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. 801 3rd St. 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.. 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. I took a trip out to ground zero for domestic oil and gas production Texas' Permian Basin . And any company that wanted to start drilling on those 9,000 federal leases would face the same problems. 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 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 . 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. Halting new federal mineral leases will reduce oil and gas investment by hundreds of millions of dollars in Colorado and . Does Fracking Cause Flaming Water Faucets? Biden claimed 9,000 oil drilling permits are unused. 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. Having thousands of unused drilling permits is not something that is unique to Bidens tenure. Why arent they drilling?". 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 have 9,000 permits to drill now. Everything in yellow is acreage that we own and operate, he told me. Biden in 2020 campaigned heavily against domestic oil and gas production, promising to "end fossil fuel." And of the remaining 10% that occurs on federal land, the oil and gas industry has millions of acres leased,Biden said. 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 . 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. If . Then again, do Fox News viewers care? Biden's Interior Department quietly updated its list of unused permits to reflect a much lower figure: 6,600, E&E News reported Monday.The department, which manages oil and gas drilling on federal . 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 have 9,000 permits to drill now. . Oil production on federal lands fell to 12.28 million barrels per day in November, the latest month with data. At the end of 2021, there were 9,173 approved and available permits to drill on federal and Indian lands. And the bottom line is, if people like Mike Oestmann and Patrick Cohorn could drill more, they would. The number of "approved oil leases" (presumably Federal mineral leases) is not an answer to that question. The average barrels of crude oil produced per day spiked during Trumps subsequent years, swelling to almost 12.3 million in 2019. (AP). 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. "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. A frack pit is basically a pond full of water thatll be used to help force oil out of the ground. "Producers also have to put a drilling plan together, secure rights of way and work with state and private landowners," Pett said. At the end of 2021, there were 9,173 approved and available permits to drill on federal and Indian lands. "So it simply wasnt profitable to drill with oil below $70. [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 "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. 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. Mischaracterizing the way federal leases work does not help foster new investment and risk-taking. 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. Drilling But its not as simple as Biden made it seem, because there are some steps before companies begin production. 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. 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." . But in Alaska, Willow represents the biggest oil field in . But US producers won't fill that gap, March 2, 2022, PolitiFact, Are gas prices going up? Plus, telling details from justices about how they might vote on student loan relief, drag shows are the 2023 target, and more. They could be drilling right now, yesterday, last week, last year.". 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. Under Biden, new oil leasing has slowed to its lowest level since World War II, with the Democrat only approving court-ordered or congressionally mandated leases. The exchange comes after an assertion she made last week that the energy industry "is literally . In the 2018 Florida governor's race "votes were being stolen by the corrupt election process in Broward. (AP Photo / Susan Walsh / File). The change suggests that President Joe Biden and administration officials had overstated the extent to which oil and gas companies have neglected producing on approved permits amid the global energy crisis last year. All rights reserved. "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. With oil at $120 or more, drilling there is wildly profitable.". PolitiFact: Biden right oil industry has over 9,000 permits to drill. At the same time, this is a really profitable business, especially with West Texas Intermediate trading at close to $100 a barrel. Its a slow process. 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. 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. Why is fracking for natural gas important? Biden complained about unused leases in his bid to spur supply and reduce gasoline prices. Is Biden sharing all the facts here? 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. EIN: 41-0953924. 236.31. Instead, the administration discouraged American energy. Whats the Difference Between Wastewater Disposal and Fracking? This is all private land, which is where 90% of the oil produced in the U.S. comes from. This material may not be published, broadcast, rewritten, 369,646 closed oil and gas leases. 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. - Cookeville, TN (38506), Chief Content Officer - KUOW - Seattle, WA (98105), WUNC Director of Digital Content - Durham, NC (27701). Biden has a point that the U.S. produced more during his first year than Trumps first year. We should be honest about the facts.". The authors forecasted the future of oil and gas production on federal . -1.64 -0.69%. 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. Legal Statement. Before drilling can occur, the lease holder has to get a federal permit. 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.. Biden's Interior Department quietly updated its list of unused permits to reflect a much lower figure: 6,600, E&E News reported Monday. Fossil Fuels Through it all, Marketplace is here for you. Some companies choose not to drill for corporate reasons because they can raise funds from investors by not drilling on leases with proven reserves. Marketplace is a division of MPR's 501 (c)(3). Quotes displayed in real-time or delayed by at least 15 minutes. No, the U.S. did not end its domestic oil production. Corporate strategy has fundamentally changed.". Biden has a point that the U.S. produced more during his first year than Trumps first year. Investors remain reluctant to invest in fossil fuels. March 2, 2021, PolitiFact, No, the U.S. did not end its domestic oil 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. Thomas Catenacci is a politics writer for Fox News Digital. 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. "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. At the end of 2021, there were 9,173 approved and available permits to drill on federal and Indian lands. ", "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. . And is it Joe Bidens fault? From a federal regulatory standpoint, once a permit is approved, industry can proceed. Prior to that, he was an attorney for Chevron, DLA Piper LLP, and the U.S. Senate. Conclusion. 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. ", "Almost every study now has said with these new boosters, you're more likely to get infected with the bivalent booster. "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 . ", We asked federal officials for an updated figure for 2021, and Interior Department spokesperson Melissa Schwartz said the agency has "no way to capture that since the discrepancy was found at the end of last year. What Does EPA Say About Water Contamination? How is Groundwater Protected During Hydraulic Fracturing? I sent in the FBI and the U.S. The oil industry already has at least 10 years' worth of unused leases at its disposal, even with the leasing pause. 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. 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. ", In 2020, the oil bust created worker and supply shortages and caused companies to cut their budgets. Now, the oil industry is sitting on a remarkable 9,173 approved, but unused, federal lands drilling permits. Ive Heard that Hydraulic Fracturing is Linked to Cancer. The U.S. has more than 24 million acres under lease to oil and gas companies onshore close to half are not producing. , All rights reserved. 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 . [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 . 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 . Specifically, they impact the ability of producers typically accountable to shareholders to take the risks involved in spending billions of dollars to find and develop oil and gas. March 2, 2021, PolitiFact, No, the U.S. did not end its domestic oil production. Many of the drilling permits held by industry and 60 percent of the acreage leased to oil producers sits unused, she said. some 40% of the mineral acreage leased by companies goes unused . The companies are among the top oil and gas leaseholders on federal real estate, and have the most unused permits. 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. Their University Retaliated Against Them. Gas Prices Joe Biden Now, his own administration is acknowledging that's wrong. 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. With oil at $120 or more, drilling there is wildly profitable.". , ", Sen. Kyrsten Sinema "voted with the president 93% of the time. Nearly three quarters of all active . Companies dont have to immediately begin drilling as their leases last 10 years and can be extended beyond that. "Sometimes there might not really even be producible oil and gas on a lease," Daigle said. One of PolitiFacts longstanding principles is to rate fact-checks based on evidence available at the time. 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. . Before drilling can occur, the lease holder has to get a federal permit. 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. "Producers also have to put a drilling plan together, secure rights of way and work with state and private landowners," Pett said. Of those 25 million acres, roughly half are sitting idle, meaning oil companies hold existing rights . The top five holders of unused leases on federal lands include EOG . 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. 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 . First, drillers have to build roads to get the crews and equipment out there. 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.. Labor is in such short supply in the region that stories like this are common, Cohorn said. February 27, 2023 05:28 PM. Sometimes there might not really even be producible oil and gas on a lease, Daigle said. 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. The current situation is a reminder that American energy abundance requires foresight and planning, investment and policy support. That's enough to last the industry another 10 years, by one estimate . 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