- Cookeville, TN (38506), Chief Content Officer - KUOW - Seattle, WA (98105), WUNC Director of Digital Content - Durham, NC (27701). February 27, 2023 05:28 PM. At the end of 2021, there were 9,173 approved and available permits to drill on federal and Indian lands. Investors remain reluctant to invest in fossil fuels. ", "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. The number of "approved oil leases" (presumably Federal mineral leases) is not an answer to that question. Eric Gay/AP. , ", Biden said that the companies are not using these permits to drill. The U.S. has more than 24 million acres under lease to oil and gas companies onshore close to half are not producing. In addition, DOI has issued 7,700 unused drilling permits. Those permits include those issued under . And any company that wanted to start drilling on those 9,000 federal leases would face the same problems. The industry could move forward with the permits that it has that are currently unused and could ramp up domestic oil production to replace Russian oil, but these moves take time. He contended that the onus is on U.S. oil and gas companies that have permits to begin drilling, but havent started. No, the U.S. did not end its domestic oil production. Before drilling can occur, the lease holder has to get a federal permit. Here's why: 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. "Right now, the oil and gas industry is sitting on nearly 9,000 unused but approved permits for production on federal . 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. Through it all, Marketplace is here for you. 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. Producers also have to put a drilling plan together, secure rights of way and work with state and private landowners, Pett said. 151 expired oil and gas leases. Yacob Reyes is a staff writer covering Florida politicians and legislative issues for PolitiFact. Are gas prices going up? , 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. 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. 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. 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. , "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," Frank Macchiarola, the American Petroleum Institute's senior vice president of policy, economics and regulatory affairs, told Fox News Digital. 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. Mischaracterizing the way federal leases work does not help foster new investment and risk-taking. The Inflation Reduction Act would end all this back-and-forth. First, drillers have to build roads to get the crews and equipment out there. Generic 1st 'XB' Future. . More: Gas prices are high and up another 7 cents nationwide. 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. I cant get the people to do the work, Oestmann said. The update we have now is what we are able to provide.". , If you came to me and said, Mike, heres $100 million. March 2, 2021, PolitiFact, No, the U.S. did not end its domestic oil production. We should be honest about the facts.". I took a trip out to ground zero for domestic oil and gas production Texas' Permian Basin . At the end of 2021, there were 9,173 approved and available permits to drill on federal and Indian lands. Powered and implemented by FactSet Digital Solutions. Back in March, as Russias invasion of Ukraine was sending the price of oil sky-high, President Joe Biden noted that the oil and natural gas industry has 9,000 permits to drill that it isnt using. 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 BLM's current lease sales and NEPA process have included a 30-day scoping period, 30 . 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 . It is republished here with permission. But its not as simple as Biden made it seem, because there are some steps before companies begin production. The U.S. has more than 24 million acres under lease to oil and gas companies onshore close to half are not producing. 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 top five holders of unused leases on federal lands include EOG . ", "I got a list of 20 jurisdictions that defunded the police to the tune of over $1 billion total. Despite attempts to portray the industry as stockpiling unused permits, "a greater share of federal leases by over 40% in . ", While it was already established that this claim is misleading, new reporting reveals that the underlying number isnt even accurate. ", In 2020, the oil bust created worker and supply shortages and caused companies to cut their budgets. 2023 FOX News Network, LLC. Labor is in such short supply in the region that stories like this are common, Cohorn said. There are more than 9,000 permits to drill oil on federal lands, as President Biden . 1,867 pending oil and gas leases. Were a company running two rigs. "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 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. The moratorium will extend the duration of the . 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. All material subject to strictly enforced copyright laws. Thousands of unused permits are not uncommon in any presidential administration. Late last . Why arent they drilling?". This material may not be published, broadcast, rewritten, A shale well, for example, could cost about $7 million to drill. "Oil and gas companies already have leases the size of Indiana," said Sen. Ed Markey (D-Mass.) Editors note, Feb. 28, 2023: This fact-check of President Joe Bidens statement in March 2022 was based on available data at the time from the Bureau of Land Management. Above, drilling rigs sit unused in Odessa, Texas. 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. 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. At the end of 2021, there were 9,173 approved and available permits to drill on federal and Indian lands. Join us for a free, virtual event for International Women's Day on March 8! Like when the president points out that some of his competitors are sitting on 9,000 federal land leases they havent drilled. "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. 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. 1800 I Street NW Please read our Terms & Conditions, Cookies Policy and Privacy Policy before using the site. 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 . 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. They could be drilling right now, yesterday, last week, last year. 54,657 authorized oil and gas leases. 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. He contended that the onus is on U.S. oil and gas companies that have permits to begin drilling, but havent started. Turns out, thats wrong. Biden complained about unused leases in his bid to spur supply and reduce gasoline prices. In total, the oil industry now holds leases to roughly 25 million acres of public lands an area approximately the size of Kentucky. "This number has been updated to account for a reporting discrepancy resulting from a transition to a new database in mid-2020.". Some companies choose not to drill for corporate reasons because they can raise funds from investors by not drilling on leases with proven reserves. FOSSIL FUEL PROFITS ARE VITAL FOR GREEN ENERGY PROJECTS DEMS ROUTINELY TOUT. 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 said the oil industry has 9,000 permits to drill now. Is Biden sharing all the facts here? Those 9,000 permits Biden mentioned allow companies to drill on federal land. Conclusion. 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'. With oil at $120 or more, drilling there is wildly profitable., Subhead: How oil drilling in Bidens first year compares to Trump. We need your help. Were just there as oversight.. Kevin OScannlain is APIs vice president of Upstream Policy. Production peaked at 13 million barrels a day under the Trump administration. Psaki has made the claim about unused federal leases before. The decision, which halts the potential to drill for oil . March 2, 2021, PolitiFact, No, the U.S. did not end its domestic oil production. How Much Water Does Hydraulic Fracturing Use? "Producers also have to put a drilling plan together, secure rights of way and work with state and private landowners," Pett said. T he Interior Department revised down its estimate of the total number of unused federal drilling permits, which the Biden administration used much of last year as a . All rights reserved. Mutual Fund and ETF data provided by Refinitiv Lipper. Joe Biden Powered and implemented by FactSet Digital Solutions. But in Alaska, Willow represents the biggest oil field in . FACT CHECK: Is Tom Brady's New Girlfriend Jewish? 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. Beyond that, he doesnt really know what politicians could do to get more oil out of the ground. ", In 2020, the oil bust created worker and supply shortages and caused companies to cut their budgets. But its not as simple as Biden made it seem, because there are some steps before companies begin production. At the end of 2021, there were 9,173 approved and available permits to drill on federal and Indian lands. 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. 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. ", "Ron DeSantis voted to cut $473 billion from Medicare. 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. They could be drilling right now, yesterday, last week, last year.". 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. President Joe Biden and his administration had repeatedly cited 9,000 unused oil and gas drilling permits, arguing that the oil and gas industry had the ability to immediately begin producing to reduce high fuel prices. American Petroleum Institue February 27, 2023. ", 60% of counties in this country are refusing to implement the nation's gun laws.. Legal Statement. Brent crude hit $139 per barrel on March 7, and some traders are even betting that oil will reach $200 per barrel by the end of the month. The department, which manages oil and gas drilling on federal land, blamed the change on a "reporting discrepancy.". 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. Gas prices are high and up another 7 cents nationwide. The numbers on oil and gas leasing in Nevada over the last several years show us how broken the federal leasing program is. USd/gal. 801 3rd St. S "So it simply wasnt profitable to drill with oil below $70. . Corporate strategy has fundamentally changed.". 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