"They have 9,000 permits to drill now. 13 rejected oil and gas leases. 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. 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 average barrels of crude oil produced per day spiked during Trumps subsequent years, swelling to almost 12.3 million in 2019. Mutual Fund and ETF data provided by Refinitiv Lipper. If . 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. For just $5/month, you can help sustain Marketplace so we can keep reporting on the things that matter to you. It is republished here with permission. 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." Production peaked at 13 million barrels a day under the Trump administration. 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 that location is just right up there, where the frack crew is.. 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." . Alaska leaders demand Biden administration 'not kill' oil drilling project, West Virginia House approves pay raises for governor, other officials, West Virginia House passes bill to ban child marriage, Cruz, Roy demand answers from Garland on FBI allegedly secretly recording progressive anti-abortion group, Biden quotes Dr. Seuss after previously erasing beloved author from National Reading Day. Quotes displayed in real-time or delayed by at least 15 minutes. All Rights Reserved. Biden said the oil industry has "9,000 permits to drill now. ", "Almost every study now has said with these new boosters, you're more likely to get infected with the bivalent booster. The department, which manages oil and gas drilling on federal land, blamed the change on a "reporting discrepancy.". 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. Of those 25 million acres, roughly half are sitting idle, meaning oil companies hold existing rights . The U.S. has more than 24 million acres under lease to oil and gas companies onshore close to half are not producing. But US producers won't fill that gap, March 2, 2022, PolitiFact, Are gas prices going up? The U.S. has more than 24 million acres under lease to oil and gas companies onshore close to half are not producing. Quotes displayed in real-time or delayed by at least 15 minutes. All material subject to strictly enforced copyright laws. The number of "approved oil leases" (presumably Federal mineral leases) is not an answer to that question. "Oil and gas companies already have leases the size of Indiana," said Sen. Ed Markey (D-Mass.) 2023 World Oil, 2023 Gulf Publishing Company LLC. Investors remain reluctant to invest in fossil fuels. President Biden says he wants more domestic oil production but he is doing nothing positive to make that happen. ", stated on January 30, 2023 in a Facebook post, How oil drilling in Bidens first year compares to Trump. 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. , In the 2018 Florida governor's race "votes were being stolen by the corrupt election process in Broward. 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. The U.S. has more than 24 million acres under lease to oil and gas companies onshore close to half are not producing. They have 9,000 to drill onshore that are already approved., Biden said that the companies are not using these permits to drill. 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. At the end of 2021, there were 9,173 approved and available permits to drill on federal and Indian lands. some 40% of the mineral acreage leased by companies goes unused . They arent necessarily the same people who own the mineral rights. For just $5/month, you can help sustain Marketplace so we can keep reporting on the things that matter to you. "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. On Feb. 27, 2023, a reader alerted us that the federal agency had published an updated number of the approved and available permits to drill the new total was 27% smaller, 6,653 permits. Market data provided by Factset. We rely on your financial support to keep making that possible. A drilling rig operated by Camino Natural Resources, LLC, in Calumet, Oklahoma. 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. The president suggested the onus is on the industry to start drilling. Oestmann said he really doesnt like the way the Biden administration talks about his industry. 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. However, once the permit is approved, drilling doesnt start overnight. 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 U.S. has more than 24 million acres under lease to oil and gas companies onshore close to half are not producing. Biden has a point that the U.S. produced more during his first year than Trumps first year. Through it all, Marketplace is here for you. 1,867 pending oil and gas leases. Please read our Terms & Conditions, Cookies Policy and Privacy Policy before using the site. 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. The American Petroleum Institute admonished the administration for its "inaccurate and misleading numbers" and called on Biden to "support American production.". 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. If you came to me and said, Mike, heres $100 million. 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. A federal judge has revoked oil and gas leases sold in the Gulf of Mexico in November, saying the Interior Department did not take into account its impact on climate change. Patrick Cohorn, operations manager at a family-owned energy company called Henry Resources, headquartered in Midland, Texas, drove me out to a stretch of land just north of the town of Rankin. 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.. District of Columbia Plus, telling details from justices about how they might vote on student loan relief, drag shows are the 2023 target, and more. "Families cant afford that companies sit on their hands. 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. Fox Business spoke with energy industry leaders and Sen. Dan Sullivan (R-Alaska) about the Biden White House's claim that 9,000 oil and natural gas drilling leases sit unused. 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. I stopped his Election from being stolen. The DOI has delayed issuing a congressionally five-year plan for offshore drilling and is weighing a complete block on such leasing through 2028. 12 fast-writing strategies that will give you energy, focus and momentum. Oilfield Electrification Technology Conference. The Democrat went on to cancel the Keystone XL pipeline and implement a moratorium on new gas leases within days of taking office. ", Sen. Marco Rubio "helped write the law to raise prescription prices.". Is Biden sharing all the facts here? 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 . Your donation today powers the independent journalism that you rely on. Washington, DC Before they could start drilling, they had to negotiate with the folks who own the land. Like when the president points out that some of his competitors are sitting on 9,000 federal land leases they havent drilled. With oil at $120 or more, drilling there is wildly profitable.". And the bottom line is, if people like Mike Oestmann and Patrick Cohorn could drill more, they would. He contended that the onus is on U.S. oil and gas companies that have permits to begin drilling, but havent started. 2023 FOX News Network, LLC. 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 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 . For federal onshore, the Mineral Leasing Act prevents any one company from locking up unproductive excessive federal acreage. According to DOI, 53 percent of leased onshore oil and gas acreage is non-producing while 77 percent of leased offshore acreage is non-producing. Hes the CEO of a company called Tall City Exploration III. 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. Biden has a point that the U.S. produced more during his first year than Trumps first year. Their University Retaliated Against Them. Companies dont have to immediately begin drilling as their leases last 10 years and can be extended beyond that. 54,657 authorized oil and gas leases. 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. 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. Nearly three quarters of all active . 996 canceled 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. We should be honest about the facts.. According to Interior's figures, more than three-quarters of the offshore federal waters already under lease remain unused that's about 8 million acres where companies could drill new . 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. "Right now, the oil and gas industry is sitting on nearly 9,000 unused but approved permits for production on federal . Joe Biden 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 Everything in yellow is acreage that we own and operate, he told me. I took a trip out to ground zero for domestic oil and gas production Texas' Permian Basin . When a lease is acquired, companies pay a "significant financial investment," and, if they do not get the lease producing, the company must pay an additional "rent" on the lease "until and unless it begins producing." The Mineral Leasing Act prevents one company from "locking up" federal lease acreage that is unproductive. No, the U.S. did not end its domestic oil production. Listing leases originally filed between the 2020's and the 1820's . 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. Out in the Midland Basin, a whole slew of ranchers own the rights to the oil underground. 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 . In addition, DOI has issued 7,700 unused drilling permits. "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. 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. 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