"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. The moratorium represents a step further than Secretarial Order No. Copyright 2021 - API. Before drilling can occur, the lease holder has to get a federal permit. 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.. At the end of 2021, there were 9,173 approved and available permits to drill on federal and Indian lands. The time for helping Ukraine with American energy was months ago. [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 You rely on Marketplace to break down the worlds events and tell you how it affects you in a fact-based, approachable way. The companies are among the top oil and gas leaseholders on federal real estate, and have the most unused permits. When a company acquires a lease, it makes a significant financial investment at the beginning of the lease in the form of a non-refundable bonus bid and pays additional rent until and unless it begins producing. Department of the Interior 20006, Florida Gas Prices In the 2018 Florida governor's race "votes were being stolen by the corrupt election process in Broward. All last summer, the administration called on OPEC+, the oil cartel, to increase its production more rapidly in the face of rising energy costs, bypassing American producers. Those 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. At the same time, this is a really profitable business, especially with West Texas Intermediate trading at close to $100 a barrel. "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.". 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. Oil production on federal lands fell to 12.28 . 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. But its not as simple as Biden made it seem, because there are some steps before companies begin production. Yacob Reyes is a staff writer covering Florida politicians and legislative issues for PolitiFact. 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. Previously, he worked as a reporter for Axios, where he covered, Amy Sherman is a staff writer with PolitiFact based in South Florida. All Rights Reserved. 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. 369,646 closed oil and gas leases. . Like when the president points out that some of his competitors are sitting on 9,000 federal land leases they havent drilled. rate fact-checks based on evidence available at the time. What Does EPA Say About Water Contamination? Whats the Difference Between Wastewater Disposal and Fracking? Biden said the oil industry has "9,000 permits to drill now. . For just $5/month, you can help sustain Marketplace so we can keep reporting on the things that matter to you. 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. "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. Everything in yellow is acreage that we own and operate, he told me. Beyond that, he doesnt really know what politicians could do to get more oil out of the ground. 33701 He said not only is labor in short supply, but steel pipe and other equipment are on back order for months. So this is a map of our acreage, he said, referring to an area between 6,000 and 7,000 acres in size. 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 president suggested the onus is on the industry to start drilling. Biden said the oil industry has 9,000 permits to drill now. 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. 2023 FOX News Network, LLC. Now is the time for the administration to fully get behind American oil and natural gas. This material may not be published, broadcast, rewritten, or redistributed. March 8, 2022 There are 9,000 unused oil and gas leases on Federal lands that the companies have not touched. I cant get the people to do the work, Oestmann said. This is exactly what the worlds leading producer of natural gas and oil should do, especially in times of turbulence. March 2, 2021, PolitiFact, No, the U.S. did not end its domestic oil production. 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. 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." It suggests American producers have been motivated by a desire to manipulate the market during the current crisis in Europe. , But its not as simple as Biden made it seem, because there are some steps before companies begin production. 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." . 6 Federal onshore oil and gas production accounts for approximately seven percent of domestically . This material may not be published, broadcast, rewritten, 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. The decision, which halts the potential to drill for oil . (iStock). 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. All Rights Reserved. ", Sen. Kyrsten Sinema "voted with the president 93% of the time. There are more than 9,000 permits to drill oil on federal lands, as President Biden . Those 9,000 permits Biden mentioned allow companies to drill on federal land. Why is fracking for natural gas important? ", "Almost every study now has said with these new boosters, you're more likely to get infected with the bivalent booster. You've successfully subscribed to this newsletter! 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. Oil production on federal lands fell to 12.28 million barrels per day in November, the latest month with data. TheU.S. Energy Information Administrationin 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. Before drilling can occur, the leaseholder has to get a federal permit. 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. March 2, 2021, PolitiFact, No, the U.S. did not end its domestic oil production. 13 rejected oil and gas leases. "There are 9,000 unused approved drilling permits," former White House Press Secretary Jen Psaki told reporters last March. Production peaked at 13 million barrels a day under the Trump administration. 236.31. 5 withdrawn oil and gas leases. The authors forecasted the future of oil and gas production on federal . - Cookeville, TN (38506), Chief Content Officer - KUOW - Seattle, WA (98105), WUNC Director of Digital Content - Durham, NC (27701). Here's why: 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. "Oil and gas companies already have leases the size of Indiana," said Sen. Ed Markey (D-Mass.) Investors remain reluctant to invest in fossil fuels. 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. 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. We should be honest about the facts.. Posted on 3/6/22 at 5:22 pm to Negatiger1986. | Terms & Conditions | Privacy, Psaki has made the claim about unused federal leases, Pipeline Strategic Data Tracking System (PSDTS). Legal Statement. "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. Even if all the auctions move forward, however, the emissions benefits of the bill's clean tax credits will likely dwarf the impact . Having thousands of unused drilling permits is not something that is unique to Bidens tenure. Your donation today powers the independent journalism that you rely on. "It is time for the administration to end the finger-pointing and instead support American production with a comprehensive strategy for American energy developmentone that includes a final five-year program for offshore leasing and quarterly onshore lease sales," the institute said in a statement. The oil industry already has at least 10 years' worth of unused leases at its disposal, even with the leasing pause. Cohorn said subcontractors are so busy, they can only make it to wells like this every so often. Having thousands of unused drilling permits is not something that is unique to Bidens tenure. We should be honest about the facts.". They have 9,000 to drill onshore that are already approved. President Biden says he wants more domestic oil production but he is doing nothing positive to make that happen. Production peaked at 13 million barrels a day under the Trump administration. some 40% of the mineral acreage leased by companies goes unused . "Sometimes there might not really even be producible oil and gas on a lease," Daigle said. 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. Producers also have to put a drilling plan together, secure rights of way and work with state and private landowners, Pett said. 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. Companies reporting gross acreage while ignoring the quality of that land and production potential is one of the less talked about issues. 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. 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. Source: Bureau of Land Management data. 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.. "These are the facts. 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. Editors note, Feb. 28, 2023: This fact-check of President Joe Bidens statement in March 2022 was based on available data at the time from the Bureau of Land Management. The department, which manages oil and gas drilling on federal land, blamed the change on a "reporting discrepancy.". 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. Now, his own administration is acknowledging that's wrong. From a federal regulatory standpoint, once a permit is approved, industry can proceed. Attorneys, and the ballot theft immediately ended. FACT CHECK: Is Tom Brady's New Girlfriend Jewish? This is false. Late last . Biden claimed 9,000 oil drilling permits are unused. 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. It to wells like this every so often cohorn said subcontractors are busy. 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