unused federal oil leases

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. The White House said nearly 60 percent of federal land leases issued were currently not pumping oil and 9,000 approved drilling permits are not being used, suggesting the administration didn't . 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. At the end of 2021, there were 9,173 approved and available permits to drill on federal and Indian lands. 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 White House did not return a request for comment. Closer to downtown Midland, Mike Oestmann drove me around a frack site to see how things are progressing. They could be drilling right now, yesterday, last week, last year. A crew of roughnecks were on a platform sending metal pipes down the well to try to get it unclogged. 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. "Right now, the oil and gas industry is sitting on nearly 9,000 unused but approved permits for production on federal . You rely on Marketplace to break down the worlds events and tell you how it affects you in a fact-based, approachable way. From a federal regulatory standpoint, once a permit is approved, industry can proceed. It has become a line the White House pivots to when pressed to explain why it isnt doing more to support American oil and gas production with soaring demand putting upward pressure on prices and with much of Europe at the mercy of its top energy provider, Russia. 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. 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. "Families cant afford that companies sit on their hands. They have 9,000 to drill onshore that are already approved. 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. ", 60% of counties in this country are refusing to implement the nation's gun laws.. His latest ploy is to place a "use it or lose it" fine on unused oil leases that take years to develop and millions of dollars. But its not as simple as Biden made it seem, because there are some steps before companies begin production. And is it Joe Bidens fault? So the surface pads, as you can see from here, its kind of hard to see. ", 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. 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. According to E&E News, President Joe Biden over the past year has stressed that companies hold 9,000 permits to drill on public lands sitting unused. Photo of electric charging station powered by diesel generator is emblematic of the electric vehicle movement. 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. 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. Why is fracking for natural gas important? How is Groundwater Protected During Hydraulic Fracturing? Legal Statement. "In the United States, 90% of onshore oil production takes place on land that isn't owned by the federal government. 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. Pavel Molchanov, an analyst at Raymond James, told CNN Business that "oil and gas companies do not want to drill more. [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 We rely on your financial support to keep making that possible. All Rights Reserved. Does Fracking Cause Flaming Water Faucets? The authors forecasted the future of oil and gas production on federal . The DOI has delayed issuing a congressionally five-year plan for offshore drilling and is weighing a complete block on such leasing through 2028. 54,657 authorized oil and gas leases. "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. Quotes displayed in real-time or delayed by at least 15 minutes. 2023 Minnesota Public Radio. "Sometimes there might not really even be producible oil and gas on a lease," Daigle said. Thousands of unused permits are not uncommon in any presidential administration. 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. 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.. 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 Biden administration has canceled one of the most high-profile oil and gas lease opportunities pending before the Interior Department. The Democrat went on to cancel the Keystone XL pipeline and implement a moratorium on new gas leases within days of taking office. 33701 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. 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. This is what we mean by American energy leadership: using abundant American energy as a positive influence that benefits Americas friends. Now, for the second claim, about the usefulness of American energy to Ukraine. We bring in a vendor, its their drilling rig, their frack crew, they outfit with their own workforce to make the work happen. 2023 FOX News Network, LLC. Like when the president points out that some of his competitors are sitting on 9,000 federal land leases they havent drilled. ", The White House is now attempting to ban all gas ovens and burners.. "Theyre not drilling. 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. This is where were parked, right here on the edge of this big frack pit.. 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. The moratorium represents a step further than Secretarial Order No. Oil production on federal lands fell to 12.28 million barrels per day in November, the latest month with data. 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. The second, by some industry opponents, is that ramping up U.S. production will not help the Ukrainian people today. 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. A shale well, for example, could cost about $7 million to drill. From cancelling the Keystone XL pipeline, to refusing to hold Federal leases sales, to threatening to refuse to . Biden Administration Biden said the oil industry has 9,000 permits to drill now. Oestmann said he really doesnt like the way the Biden administration talks about his industry. "Producers also have to put a drilling plan together, secure rights of way and work with state and private landowners," Pett said. That's true, but all work can't begin 'right now'. In addition, DOI has issued 7,700 unused drilling permits. 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 . March 2, 2021, PolitiFact, No, the U.S. did not end its domestic oil production. 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. Are gas prices going up? Inform me please. "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. Then, an electrical submersible pump, or ESP, was sucked down into the well. 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. The oil and gas industry has stockpiled millions of acres of leases on public lands and waters. , The Inflation Reduction Act would end all this back-and-forth. It suggests American producers have been motivated by a desire to manipulate the market during the current crisis in Europe. The BLM's current lease sales and NEPA process have included a 30-day scoping period, 30 . As a result, Henry Resources has been standing by with an unproductive well for two months. The number of "approved oil leases" (presumably Federal mineral leases) is not an answer to that question. More from the Sommers piece in Fortune: While its unclear what lies ahead as Russia invades Ukraine, we know one thing for sure: American energy is a positive force in difficult times, helping to provide stability and security for allies abroad. Thomas Catenacci is a politics writer for Fox News Digital. 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. Some companies choose not to drill for corporate reasons because they can raise funds from investors by not drilling on leases with proven reserves. 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. Washington, DC 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! , about the usefulness of American energy to Ukraine, last week, last week, last,. Henry Resources has been standing by with an unproductive well for two months was... For two months, DOI has delayed issuing a congressionally five-year plan for offshore drilling is! 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