forward with a plan to lock up even more of our state's land in unused oil and gas leases. ", 60% of counties in this country are refusing to implement the nation's gun laws.. 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. We rely on your financial support to keep making that possible. "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. Previously, he worked as a reporter for Axios, where he covered, Amy Sherman is a staff writer with PolitiFact based in South Florida. See the sources for this fact check hereand more of their fact checkshere. Listing leases originally filed between the 2020's and the 1820's . A shale well, for example, could cost about $7 million to drill. We should be honest about the facts.". Pavel Molchanov, an analyst at Raymond James, told CNN Business that "oil and gas companies do not want to drill more. 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. "Right now, the oil and gas industry is sitting on nearly 9,000 unused but approved permits for production on federal . Eric Gay/AP. Shortages of steel pipe, sand and workers are cutting into potential oil production. Is Biden sharing all the facts here? 2023 World Oil, 2023 Gulf Publishing Company LLC. It suggests American producers have been motivated by a desire to manipulate the market during the current crisis in Europe. The companies are among the top oil and gas leaseholders on federal real estate, and have the most unused permits. 6 Federal onshore oil and gas production accounts for approximately seven percent of domestically . Florida Senate Bill 2A does not provide "immediate relief" to homeowners dealing with high property insurance rates and "will force some constituents to pay up to 20% more. Hes right on the numbers of permits but what that means is a little more complicated than his statement suggests. It canceled energy infrastructure, blocked development in parts of Alaska, entertained new taxes to punish the U.S. energy industry and chilled future investment by signaling that oil and gas wouldnt be part of Americas future energy mix. At the end of 2021, there were 9,173 approved and available permits to drill on federal and Indian lands. Biden said the oil industry has "9,000 permits to drill now. All material subject to strictly enforced copyright laws. So this is a map of our acreage, he said, referring to an area between 6,000 and 7,000 acres in size. March 2, 2021, PolitiFact, No, the U.S. did not end its domestic oil production. , or redistributed. 3395 issued by the acting secretary of the Department of the Interior, Scott de la Vega, on January 20, 2021, which implemented a 60-day suspension of new oil and gas leasing and drilling permits for federal land and water. 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. 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. "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. This material may not be published, broadcast, rewritten, or redistributed. EIN: 41-0953924. Biden's Interior Department quietly updated its list of unused permits to reflect a much lower figure: 6,600, E&E News reported Monday. Now, the oil industry is sitting on a remarkable 9,173 approved, but unused, federal lands drilling permits. 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. Investors remain reluctant to invest in fossil fuels. Before drilling can occur, the lease holder has to get a federal permit. March 8, 2022 There are 9,000 unused oil and gas leases on Federal lands that the companies have not touched. The Inflation Reduction Act would end all this back-and-forth. Companies reporting gross acreage while ignoring the quality of that land and production potential is one of the less talked about issues. Revenues are split between the state where the drilling occurs and the U.S. Treasury. The president suggested the onus is on the industry to start drilling. They have 9,000 to drill onshore that are already approved. In a world of wild talk and fake news, help us stand up for the facts. To be clear, Biden wasnt wrong about that number, but citing it as evidence that energy companies are sitting on their hands to keep prices high needs a bit more context. I sent in the FBI and the U.S. Before drilling can occur, the lease holder has to get a federal permit. Hes right on the numbers of permits but what that means is a little more complicated than his statement suggests. That data showed that as of the end of 2021, there were 9,173 approved and available permits to drill on federal and Indian lands. Turns out, thats wrong. President Joe Biden. 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. . 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. Powered and implemented by FactSet Digital Solutions. 1,867 pending oil and gas leases. The BLM's current lease sales and NEPA process have included a 30-day scoping period, 30 . At the end of 2021, there were 9,173 approved and available permits to drill on federal and Indian lands. 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. 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. Powered and implemented by FactSet Digital Solutions. 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. 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 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. 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. Why is fracking for natural gas important? (AP). Pavel Molchanov, an analyst at Raymond James, told CNN Business that "oil and gas companies do not want to drill more. Ive Heard that Hydraulic Fracturing is Linked to Cancer. Is that True? Joe Biden: The oil industry has "9,000 permits to drill now. 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. 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. 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. ", In 2020, the oil bust created worker and supply shortages and caused companies to cut their budgets. 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 . Thousands of unused permits are not uncommon in any presidential administration. Support responsible news and fact-based information today! That's true, but all work can't begin 'right now'. 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. , "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. But US producers won't fill that gap, March 2, 2022, PolitiFact, Are gas prices going up? All Rights Reserved. "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. The oil industry already has at least 10 years' worth of unused leases at its disposal, even with the leasing pause. However, once the permit is approved, drilling doesnt start overnight. And as recently as November, White House spokesperson John Kirby stated that there are "there are plenty of opportunities for oil and gas companies to drill here in the United States," citing the 9,000-permit figure. Thomas Catenacci is a politics writer for Fox News Digital. 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 . [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 The authors forecasted the future of oil and gas production on federal . The U.S. has more than 24 million acres under lease to oil and gas companies onshore close to half are not producing. 13 rejected oil and gas leases. 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. "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. 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. At the end of 2021, there were 9,173 approved and available permits to drill on federal and Indian lands. Most of the time, its rented equipment. 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. 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 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. . They could be drilling right now, yesterday, last week, last year. Producers also have to put a drilling plan together, secure rights of way and work with state and private landowners, Pett said. However, once the permit is approved, drilling doesnt start overnight. 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. Oil production on federal lands fell to 12.28 . "They have to be sure that the costly investment (and time) that it takes to turn a lease into a producing well is worth it.". Investors remain reluctant to invest in fossil fuels. Quotes displayed in real-time or delayed by at least 15 minutes. 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 . "These are the facts. 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." "These are the facts. The lengthy process to develop them from a lease often is extended by administrative and legal challenges at every step along the way. Gas prices are high and up another 7 cents nationwide. 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. | Terms & Conditions | Privacy, Psaki has made the claim about unused federal leases, Pipeline Strategic Data Tracking System (PSDTS). USd/gal. Get the latest updates from the 2024 campaign trail, exclusive interviews and more Fox News politics content. 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. But a Biden administration official downplayed the alteration Monday, saying the number of unused oil and gas permits remains high. 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'. New Data: Biden's First Year Drilling Permitting Stomps Trump's By 34% Biological Diverity.org Joe Biden Is Making Donald Trump Look Like an Environmentalist-Gizmodo The analysis comes from Public Citizen, which found Biden's Bureau of Land Biden Administration 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. 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. Were just there as oversight.. BLM drilling approvals tapered off after a big jump in 2021. 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. ", "Almost every study now has said with these new boosters, you're more likely to get infected with the bivalent booster. Their University Retaliated Against Them. 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. Your donation today powers the independent journalism that you rely on. Here is the average price in each state. All rights reserved. Oilfield Electrification Technology Conference. The U.S. has more than 24 million acres under lease to oil and gas companies onshore close to half are not producing. It sits about an hour outside Midland and its where Henrys crews are fracking for oil. This is exactly what the worlds leading producer of natural gas and oil should do, especially in times of turbulence. 5 relinquished oil and gas leases. As a result, Henry Resources has been standing by with an unproductive well for two months. Photo of electric charging station powered by diesel generator is emblematic of the electric vehicle movement. 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. How is Groundwater Protected During Hydraulic Fracturing? Department of the Interior They could be drilling right now, yesterday, last week, last year.. Conclusion. Before drilling can occur, the leaseholder has to get a federal permit. This is what we mean by American energy leadership: using abundant American energy as a positive influence that benefits Americas friends. 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. If you came to me and said, Mike, heres $100 million. And wells that have been drilled need to be maintained. "So, I would suggest you ask the oil companies why they're not using those, if there's a desire to drill more. 727-821-9494, The oil industry has "9,000 permits to drill now. They have to be sure that the costly investment (and time) that it takes to turn a lease into a producing well is worth it.. All Rights Reserved. For federal onshore, the Mineral Leasing Act prevents any one company from locking up unproductive excessive federal acreage. Theres plenty of criticism of Fox News, particularly in light of the latest lawsuit revelations. "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 . 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. Its a slow process. 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. 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