President Biden and top White House officials repeatedly stated last year that oil and gas exploration companies were sitting on 9,000 unused drilling permits, a figure the administration admitted was inaccurate Monday.. And of the remaining 10% that occurs on federal land, the oil and gas industry has millions of acres leased,Biden said. 996 canceled oil and gas leases. Technically, theres some truth there because, indeed, increasing American oil and gas production will not help Ukraine today. . Pavel Molchanov, an analyst at Raymond James, told CNN Business that "oil and gas companies do not want to drill more. 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. producers for leaving 9,000 permits to drill on federal lands untapped. 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 . Companies dont have to immediately begin drilling as their leases last 10 years and can be extended beyond that. No, the U.S. did not end its domestic oil production. 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. 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. Tim Stewart, president of the U.S. Oil and Gas . They could be drilling right now, yesterday, last week, last year.". Biden's Interior Department quietly updated its list of unused permits to reflect a much lower figure: 6,600, E&E News reported Monday. She was part of the team that launched PolitiFact Florida in 2010 and, All Rights Reserved Poynter Institute 2023, The Poynter Institute for Media Studies, Inc. is a non-profit 501(c)3. 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. All rights reserved. "They have 9,000 permits to drill now. "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. Video shows President Joe Biden recalling an alien encounter. Before drilling can occur, the lease holder has to get a federal permit. Does Fracking Cause Flaming Water Faucets? Thousands of unused permits are not uncommon in any presidential administration. The update we have now is what we are able to provide.". Oil production on federal lands fell to 12.28 million barrels per day in November, the latest month with data. You've successfully subscribed to this newsletter! What the administration is doing is theyre trying to do what they can, with what little leverage they have, to try to get oil and gasoline prices down.. The current situation is a reminder that American energy abundance requires foresight and planning, investment and policy support. 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. They could be drilling right now, yesterday, last week, last year.. "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. Why is fracking for natural gas important? 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. "Sometimes there might not really even be producible oil and gas on a lease," Daigle said. "Oil and gas companies already have leases the size of Indiana," said Sen. Ed Markey (D-Mass.) Having thousands of unused drilling permits is not something that is unique to Bidens tenure. "These are the facts. Get the latest updates from the 2024 campaign trail, exclusive interviews and more Fox News politics content. The only thing that "the administration" could do to increase oil production, would be to get the hell out of the way. 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. 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. Our only agenda is to publish the truth so you can be an informed participant in democracy. Like when the president points out that some of his competitors are sitting on 9,000 federal land leases they havent drilled. PolitiFact: Biden right oil industry has over 9,000 permits to drill. President Biden says he wants more domestic oil production but he is doing nothing positive to make that happen. or redistributed. 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. Having thousands of unused drilling permits is not something that is unique to Bidens tenure. Is Biden sharing all the facts here? They have 9,000 permits to drill now. Nearly three quarters of all active . 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. Feb 2021 Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan 2022 Feb 0 100 200 300 400 500 600 700. The president suggested the onus is on the industry to start drilling. ", "Almost every study now has said with these new boosters, you're more likely to get infected with the bivalent booster. They could be drilling right now, yesterday, last week, last year. For federal onshore, the Mineral Leasing Act prevents any one company from locking up unproductive excessive federal acreage. 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. The truth is that Big Oil already has over 10 million acres of unused leases in its arsenal, as well as enough unused approved drilling permits to last over a decade. In other words, 9,000 chances to increase the supply of oil and gas and drive down prices. "So it simply wasnt profitable to drill with oil below $70. This is what we mean by American energy leadership: using abundant American energy as a positive influence that benefits Americas friends. We should be honest about the facts.". 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. The department, which manages oil and gas drilling on federal land, blamed the change on a "reporting discrepancy.". See the sources for this fact check hereand more of their fact checkshere. This is where were parked, right here on the edge of this big frack pit.. Those guys are tripping in and out to go in and try to latch on to that ESP and try to pull it out, Cohorn said. Cohorn said subcontractors are so busy, they can only make it to wells like this every so often. ", While it was already established that this claim is misleading, new reporting reveals that the underlying number isnt even accurate. 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. 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 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. Before they could start drilling, they had to negotiate with the folks who own the land. 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. Jewish Students Reported a Professor for Anti-Semitism. Lets address two claims heard about American natural gas and oil production amid the ongoing Russia-Ukraine crisis. As Sommers noted in a recent blog, the administration should provide clarity on federal leasing and permit energy infrastructure. Late last . 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. U.S. President Joe Biden wants oil drillers to pay penalties when federal leases go unused in an effort to prod the industry into pumping . Were just there as oversight.. Then, an electrical submersible pump, or ESP, was sucked down into the well. (AP Photo / Susan Walsh / File). Thomas Catenacci is a politics writer for Fox News Digital. They exist. Some companies choose not to drill for corporate reasons because they can raise funds from investors by not drilling on leases with proven reserves. They have 9,000 to drill onshore that are already approved. For more than a year it has halted new federal leasing key to future energy investment and production. Join us for a free, virtual event for International Women's Day on March 8! 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. Joe Biden: The oil industry has "9,000 permits to drill now. How Much Water Does Hydraulic Fracturing Use? 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. 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. Quotes displayed in real-time or delayed by at least 15 minutes. 2023 Minnesota Public Radio. 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. 1,867 pending oil and gas leases. 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 . ", "Ron DeSantis voted to cut $473 billion from Medicare. This is false. With oil at $120 or more, drilling there is wildly profitable.". A drilling rig operated by Camino Natural Resources, LLC, in Calumet, Oklahoma. he paused oil and gas leasing on federal lands and last fall . ", "I got a list of 20 jurisdictions that defunded the police to the tune of over $1 billion total. 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. 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. 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. But US producers won't fill that gap, March 2, 2022, PolitiFact, Are gas prices going up? 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. The Inflation Reduction Act would end all this back-and-forth. 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. Those 9,000 permits Biden mentioned allow companies to drill on federal land. The number of "approved oil leases" (presumably Federal mineral leases) is not an answer to that question. And any company that wanted to start drilling on those 9,000 federal leases would face the same problems. 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. The exchange comes after an assertion she made last week that the energy industry "is literally . 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." 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. ", Biden said that the companies are not using these permits to drill. 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. More: Gas prices are high and up another 7 cents nationwide. center for media and democracy logo Revenues are split between the state where the drilling occurs and the U.S. Treasury. . Here is the average price in each state. "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. Psaki has made the claim about unused federal leases before. some 40% of the mineral acreage leased by companies goes unused . 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." . 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 producer of natural gas and oil. They could be drilling right now, yesterday . They have 9,000 to drill onshore that are already approved., Biden said that the companies are not using these permits to drill. Conclusion. "There are 9,000 unused, approved drilling permits. "Right now, the oil and gas industry is sitting on nearly 9,000 unused but approved permits for production on federal . So, I took a trip out to ground zero for domestic oil and gas production Texas Permian Basin to hopefully bring some back. Previously, he worked as a reporter for Axios, where he covered, Amy Sherman is a staff writer with PolitiFact based in South Florida. USd/gal. The oil and gas industry has stockpiled millions of acres of leases on public lands and waters. All material subject to strictly enforced copyright laws. Legal Statement. The decision, which halts the potential to drill for oil . Department of the Interior ", "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. Biden Administration Totals may change based on date of report generation due to ongoing data cleanup efforts. BLM drilling approvals tapered off after a big jump in 2021. 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 . It suggests American producers have been motivated by a desire to manipulate the market during the current crisis in Europe. ", Sen. Kyrsten Sinema "voted with the president 93% of the time. President Biden on Wednesday issued an executive order temporarily pausing federal oil and gas leases and setting in motion potentially longer-lasting restrictions on federal lands production of fo So it simply wasnt profitable to drill with oil below $70. First, drillers have to build roads to get the crews and equipment out there. The Biden administration has canceled one of the most high-profile oil and gas lease opportunities pending before the Interior Department. Those permits include those issued under . 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'. ", In 2020, the oil bust created worker and supply shortages and caused companies to cut their budgets. Of those 25 million acres, roughly half are sitting idle, meaning oil companies hold existing rights . Suggests "108 FIFA registered players/coaches have died" because of COVID-19 vaccines. The time for helping Ukraine with American energy was months ago. From a federal regulatory standpoint, once a permit is approved, industry can proceed. 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. 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. Legal Statement. 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, This article originally appeared on Austin American-Statesman: PolitiFact: Biden right oil industry has over 9,000 permits to drill, 02-2503-2490. 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Is literally this claim is misleading, new reporting reveals that the underlying number isnt even.... Heard about American natural gas and oil production on federal land, blamed the change on a reporting. Permits Biden mentioned allow companies to cut $ 473 billion from Medicare unused federal oil leases vaccines on... Delayed by at least 15 minutes below $ 70 not want to drill for corporate reasons because they can make! I think, change that rhetoric James, told CNN Business that `` oil and gas industry ``! Permits Biden mentioned allow companies to cut their budgets are able to provide. ``, increasing American oil gas... This back-and-forth gas lease opportunities pending before the Interior department police to the tune of over $ billion! Administration Totals May change based on date of report generation due to ongoing data cleanup efforts it. Permits but what that means is a little more complicated than his suggests! Natural gas and drive down prices '' Daigle said / File ) more Fox News content!
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