How Much Water Does Hydraulic Fracturing Use? Beyond that, he doesnt really know what politicians could do to get more oil out of the ground. ", "I got a list of 20 jurisdictions that defunded the police to the tune of over $1 billion total. 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." Quotes displayed in real-time or delayed by at least 15 minutes. But its not as simple as Biden made it seem, because there are some steps before companies begin production. 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 He contended that the onus is on U.S. oil and gas companies that have permits to begin drilling, but havent started. The Biden administration has canceled one of the most high-profile oil and gas lease opportunities pending before the Interior Department. In the 2018 Florida governor's race "votes were being stolen by the corrupt election process in Broward. . 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. 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. This material may not be published, broadcast, rewritten, or redistributed. 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. quote: companies leased up acreage that they thought might be valuable. - Cookeville, TN (38506), Chief Content Officer - KUOW - Seattle, WA (98105), WUNC Director of Digital Content - Durham, NC (27701). Companies reporting gross acreage while ignoring the quality of that land and production potential is one of the less talked about issues. 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 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. This is what we mean by American energy leadership: using abundant American energy as a positive influence that benefits Americas friends. 996 canceled oil and gas leases. Despite attempts to portray the industry as stockpiling unused permits, "a greater share of federal leases by over 40% in . "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. Investors remain reluctant to invest in fossil fuels. However, once the permit is approved, drilling doesnt start overnight. All Rights Reserved. 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. But a Biden administration official downplayed the alteration Monday, saying the number of unused oil and gas permits remains high. Production peaked at 13 million barrels a day under the Trump administration. This material may not be published, broadcast, rewritten, They have 9,000 to drill onshore that are already approved. For federal onshore, the Mineral Leasing Act prevents any one company from locking up unproductive excessive federal acreage. 5 relinquished oil and gas leases. Companies dont have to immediately begin drilling as their leases last 10 years and can be extended beyond that. 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. 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. Fossil Fuels ", Biden said that the companies are not using these permits to drill. Published under: ", In 2020, the oil bust created worker and supply shortages and caused companies to cut their budgets. 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. With oil at $120 or more, drilling there is wildly profitable., Subhead: How oil drilling in Bidens first year compares to Trump. ", stated on January 30, 2023 in a Facebook post, How oil drilling in Bidens first year compares to Trump. 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 decision, which halts the potential to drill for oil . Developing a lease takes years and substantial effort to determine whether the underlying geology holds commercial quantities of oil and/or gas. Closer to downtown Midland, Mike Oestmann drove me around a frack site to see how things are progressing. A shale well, for example, could cost about $7 million to drill. This is exactly what the worlds leading producer of natural gas and oil should do, especially in times of turbulence. Thousands of unused permits are not uncommon in any presidential administration. They arent necessarily the same people who own the mineral rights. Meanwhile, its been 242 days since the Department of the Interior allowed the five-year offshore leasing program to expire, and the administration held just one quarterly lease sale in 2022 after not holding any in 2021, as required by law. 1800 I Street NW We need your help. If . 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. So you get the mineral position leased, then you have to go to the surface owner and negotiate good terms and a good understanding of how youre going to use his surface and make him happy, so that you can come out here and start doing all the stuff that we have to do to get to and from our wells, Cohorn said. Some companies choose not to drill for corporate reasons because they can raise funds from investors by not drilling on leases with proven reserves. Turns out, thats wrong. Cohorn said subcontractors are so busy, they can only make it to wells like this every so often. President Joe Biden. Above, drilling rigs sit unused in Odessa, Texas. USd/gal. 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. 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. Even then, he said, getting oil out of the ground takes time. 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. He contended that the onus is on U.S. oil and gas companies that have permits to begin drilling, but havent started. And of the remaining 10% that occurs on federal land, the oil and gas industry has millions of acres leased," Biden said. Companies dont have to immediately begin drilling as their leases last 10 years and can be extended beyond that. ", "Florida's water is dirtier and sicker than when Gov. Our only agenda is to publish the truth so you can be an informed participant in democracy. With Russian tanks encircling Kyiv and Russian artillery pounding Ukrainian civilians, the importance of American energy could hardly be clearer. 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. PolitiFact: Biden right oil industry has over 9,000 permits to drill. The exchange comes after an assertion she made last week that the energy industry "is literally . 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. "In Utah alone, the industry is sitting on more than 1.7 million acres of unused federal oil and gas leases on some of our nation's wildest and most culturally significant public lands . ", The White House is now attempting to ban all gas ovens and burners.. Listing leases originally filed between the 2020's and the 1820's . . The Biden administration quietly announced Friday that it was restarting the sale of oil and gas leases on federal land next week almost exactly 15 months after . The U.S. has more than 24 million acres under lease to oil and gas companies onshore close to half are not producing. They could be drilling right now, yesterday, last week, last year.". 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. ", Sen. Kyrsten Sinema "voted with the president 93% of the time. It suggests American producers have been motivated by a desire to manipulate the market during the current crisis in Europe. However, once the permit is approved, drilling doesnt start overnight. 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. Cohorn at Henry Resources said his land and legal crew started acquiring mineral leases in 2016. Many of the drilling permits held by industry and 60 percent of the acreage leased to oil producers sits unused, she said. "Psaki has made the claim about 'unused' federal leases before," O'Scannlain notes. ", While it was already established that this claim is misleading, new reporting reveals that the underlying number isnt even accurate. 20006, Florida 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. They have 9,000 to drill onshore that are already approved. Now, for the second claim, about the usefulness of American energy to Ukraine. 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 . 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. Sign up for the daily Marketplace newsletter to make sense of the most important business and economic news. 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.. 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. From a federal regulatory standpoint, once a permit is approved, industry can proceed. Plus, telling details from justices about how they might vote on student loan relief, drag shows are the 2023 target, and more. Thomas Catenacci is a politics writer for Fox News Digital. Why is fracking for natural gas important? Biden Administration Heres some money, go get a third rig. I cant get the pipe. The oil industry already has at least 10 years' worth of unused leases at its disposal, even with the leasing pause. 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. The head of the biggest U.S. oil lobby groups said the Biden administration is "misusing facts" when it claims the industry has more than 9,000 federal drilling permits on which it can drill . OScannlain is a graduate of the College of the Holy Cross and Notre Dame Law School. The average barrels of crude oil produced per day spiked during Trumps subsequent years, swelling to almost 12.3 million in 2019. , Before drilling can occur, the leaseholder has to get a federal permit. Gas prices are high and up another 7 cents nationwide. It suggests American producers have been motivated by a desire to manipulate the market during the current crisis in Europe. , For just $5/month, you can help sustain Marketplace so we can keep reporting on the things that matter to you. Does Fracking Cause Flaming Water Faucets? All rights reserved. "Right now, the oil and gas industry is sitting on nearly 9,000 unused but approved permits for production on federal . "Families cant afford that companies sit on their hands. Investors remain reluctant to invest in fossil fuels. 2023 FOX News Network, LLC. But US producers won't fill that gap. 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 . Revenues are split between the state where the drilling occurs and the U.S. Treasury. Of those 25 million acres, roughly half are sitting idle, meaning oil companies hold existing rights . "They have 9,000 permits to drill now. They could be drilling right now, yesterday, last week, last year. kassandra significato, Suggests American producers have been motivated by a desire to manipulate the market during the crisis... 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