"This number has been updated to account for a reporting discrepancy resulting from a transition to a new database in mid-2020.". "Producers also have to put a drilling plan together, secure rights of way and work with state and private landowners," Pett said. , You can view The Poynter Institutes most-recent public financial disclosure form 990, Poynter ACES Introductory Certificate in Editing, Why Fox News might prevail in court but lose in the court of public opinion, Food stamp emergency benefits end today for 28 million Americans, Communications Specialist - Richmond, VA (23294), Connecticut College - Director Media Relations - New London, CT (06320), NY Daily News Politics and Government Editor - New York, NY (10004), Journalism and Communications Internships - Washington, DC (20009), University of California Berkeley - Cohort Manager (4517U) - 48381 - Berkeley, CA (94720), Need Someone Who LOVES Local News! ", "I got a list of 20 jurisdictions that defunded the police to the tune of over $1 billion total. 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 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. 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. The Bureau of Land Management, which oversees nearly 250 million acres of federal lands, altered its estimate for the current number of approved but unused applications for . Were a company running two rigs. As a result, Henry Resources has been standing by with an unproductive well for two months. Listing leases originally filed between the 2020's and the 1820's . But a Biden administration official downplayed the alteration Monday, saying the number of unused oil and gas permits remains high. 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. Cohorn said subcontractors are so busy, they can only make it to wells like this every so often. Legal Statement. The BLM's current lease sales and NEPA process have included a 30-day scoping period, 30 . Before coming to API, Kevin served in the White House as Special Assistant to the President in two different roles, and as Deputy Solicitor for Energy & Minerals at the U.S. Department of the Interior. The decision, which halts the potential to drill for oil . That's true, but all work can't begin 'right now'. 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.. At issue in particular was the administration's 60-day pause on new federal oil and gas leases, which several senators mischaracterized as a "ban". President Joe Biden. Some companies choose not to drill for corporate reasons because they can raise funds from investors by not drilling on leases with proven reserves. He contended that the onus is on U.S. oil and gas companies that have permits to begin drilling, but havent started. The U.S. has more than 24 million acres under lease to oil and gas companies onshore close to half are not producing. Its almost like Johnny Cashs Cadillac we get it one piece at a time.. 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.. "They have 9,000 permits to drill now. 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. First, drillers have to build roads to get the crews and equipment out there. Quotes displayed in real-time or delayed by at least 15 minutes. ", Sen. Kyrsten Sinema "voted with the president 93% of the time. "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. Its a slow process. 13 rejected oil and gas leases. Government policies can either discourage or encourage oil producers to take the risk of investing billions of dollars, plus considerable time and effort, to find out whether or not the lands they lease are viable sources of oil. Tim Stewart, president of the U.S. Oil and Gas . ", Biden said that the companies are not using these permits to drill. What Does EPA Say About Water Contamination? Hes right on the numbers of permits but what that means is a little more complicated than his statement suggests. "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. They could be drilling right now, yesterday, last week, last year. BLM drilling approvals tapered off after a big jump in 2021. EIN: 41-0953924. Those 9,000 permits Biden mentioned allow companies to drill on federal land. "These are the facts. "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. 12 fast-writing strategies that will give you energy, focus and momentum. ", "Ron DeSantis voted to cut $473 billion from Medicare. he paused oil and gas leasing on federal lands and last fall . Posted on 3/6/22 at 5:22 pm to Negatiger1986. So, I took a trip out to ground zero for domestic oil and gas production Texas Permian Basin to hopefully bring some back. They could be drilling right now, yesterday, last week, last year. . Then, an electrical submersible pump, or ESP, was sucked down into the well. As Sommers noted in a recent blog, the administration should provide clarity on federal leasing and permit energy infrastructure. 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. Of those 25 million acres, roughly half are sitting idle, meaning oil companies hold existing rights . But its not as simple as Biden made it seem, because there are some steps before companies begin production. 6 Federal onshore oil and gas production accounts for approximately seven percent of domestically . Is Biden sharing all the facts here? One of PolitiFacts longstanding principles is to rate fact-checks based on evidence available at the time. The Inflation Reduction Act would end all this back-and-forth. The oil and gas industry has stockpiled millions of acres of leases on public lands and waters. ", The White House is now attempting to ban all gas ovens and burners.. "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. FOSSIL FUEL PROFITS ARE VITAL FOR GREEN ENERGY PROJECTS DEMS ROUTINELY TOUT. All material subject to strictly enforced copyright laws. And of the remaining 10% that occurs on federal land, the oil and gas industry has millions of acres leased," Biden said. Quotes displayed in real-time or delayed by at least 15 minutes. 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. 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. The average barrels of crude oil produced per day spiked during Trumps subsequent years, swelling to almost 12.3 million in 2019. I stopped his Election from being stolen. Even then, he said, getting oil out of the ground takes time. 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. 236.31. 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. Having thousands of unused drilling permits is not something that is unique to Bidens tenure. District of Columbia She added that oil and gas companies have been limiting costs and . Now, for the second claim, about the usefulness of American energy to Ukraine. At the same time, this is a really profitable business, especially with West Texas Intermediate trading at close to $100 a barrel. Late last . 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. 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.. 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. "Families cant afford that companies sit on their hands. The DOI has delayed issuing a congressionally five-year plan for offshore drilling and is weighing a complete block on such leasing through 2028. 1,867 pending oil and gas leases. From a federal regulatory standpoint, once a permit is approved, industry can proceed. 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. 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. In addition to Biden, top administration officials such as National Security Council spokesman John Kirby and former White House press secretary Jen Psaki have used the 9,000-permit talking point to argue that the oil and gas industry has "plenty of opportunities to drill here in the United States." Companies reporting gross acreage while ignoring the quality of that land and production potential is one of the less talked about issues. Department of the Interior 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. 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. 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. For more than a year it has halted new federal leasing key to future energy investment and production. 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. 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. They could be drilling right now, yesterday, last week, last year. API President and CEO Mike Sommers, in an op-ed on Fortune.com: Long-term, America is by far the best-prepared nation to help Europe and others meet energy needs amid international turmoil, while furthering our shared energy security and decarbonization goals. 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. (AP). 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 EIN for the organization is 59-1630423. Joe Biden: The oil industry has "9,000 permits to drill now. And is it Joe Bidens fault? If . Turns out, thats wrong. 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. A shale well, for example, could cost about $7 million to drill. But US producers won't fill that gap. "They have 9,000 permits to drill now. 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. This is where were parked, right here on the edge of this big frack pit.. 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. And is it Joe Bidens fault? And any company that wanted to start drilling on those 9,000 federal leases would face the same problems. [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 . ", "It's President Biden who is proposing to cut Medicare Advantage. 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. "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. 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. If you came to me and said, Mike, heres $100 million. Now, the oil industry is sitting on a remarkable 9,173 approved, but unused, federal lands drilling permits. Before drilling can occur, the lease holder has to get a federal permit. The Biden administration has canceled one of the most high-profile oil and gas lease opportunities pending before the Interior Department. February 27, 2023 05:28 PM. The oil industry already has at least 10 years' worth of unused leases at its disposal, even with the leasing pause. From a federal regulatory standpoint, once a permit is approved, industry can proceed. The department, which manages oil and gas drilling on federal land, blamed the change on a "reporting discrepancy.". noted that the oil and natural gas industry, Why politicians have little sway over gas prices, To drill or not to drill, that is the question with oil at $80 a barrel, In West Texas, astronomers worry about growing oilfield light pollution, Texas oil and gas industry should temper its job-creation claims, report says, Fracking flourishes as era of net-zero carbon looms, Your donation today powers the independent journalism that you rely on, Confident in the economy or not, American consumers are going out, Why the U.S. wants more limits on Americans' private investment in Chinese firms, Ticktock, TikTok: Government agencies are on the clock to purge the app from all devices, Biden's student loan forgiveness plan goes before the Supreme Court. 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