Market data provided by Factset. 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. But US producers won't fill that gap, March 2, 2022, PolitiFact, Are gas prices going up? 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.. From a federal regulatory standpoint, once a permit is approved, industry can proceed. Occidental has more than 500 unused federal permits. 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. A crew of roughnecks were on a platform sending metal pipes down the well to try to get it unclogged. 12 fast-writing strategies that will give you energy, focus and momentum. They exist. Gas prices are high and up another 7 cents nationwide. Eric Gay/AP. Closer to downtown Midland, Mike Oestmann drove me around a frack site to see how things are progressing. Ultimately, energy policies affect the energy investment climate. St. Petersburg, FL President Biden and top White House officials repeatedly stated last year that oil and gas exploration companies were sitting on 9,000 unused drilling permits, a figure the administration admitted was inaccurate Monday.. I stopped his Election from being stolen. 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." Oil and gas companies are currently sitting on 23 million acres of unused federal leases, an area roughly the size of Indiana. 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. Biden's Interior Department quietly updated its list of unused permits to reflect a much lower figure: 6,600, E&E News reported Monday. "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. They could be drilling right now, yesterday, last week, last year.". He worked in the oil and gas industry for five years and now teaches petroleum engineering at the University of Texas at Austin. In the 2018 Florida governor's race "votes were being stolen by the corrupt election process in Broward. During Bidens first year in office, the U.S.produced an averageof about 11 million barrels of crude oil per day compared to Trumps 9 million barrels per day in his first year. Gas Prices Production peaked at 13 million barrels a day under the Trump administration. President Biden says he wants more domestic oil production but he is doing nothing positive to make that happen. "They have 9,000 permits to drill now. "Producers also have to put a drilling plan together, secure rights of way and work with state and private landowners," Pett said. 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 . Washington, DC 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. Suggests "108 FIFA registered players/coaches have died" because of COVID-19 vaccines. 2023 FOX News Network, LLC. This is all private land, which is where 90% of the oil produced in the U.S. comes from. 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. 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. One of PolitiFacts longstanding principles is to rate fact-checks based on evidence available at the time. Lets address two claims heard about American natural gas and oil production amid the ongoing Russia-Ukraine crisis. Now is the time for the administration to fully get behind American oil and natural gas. Is Biden sharing all the facts here? Then, Biden administration support for robust U.S. production might have helped deter Moscow from thinking that European nations dependent on Russian energy might do less to oppose Russia the aggressor. They have 9,000 permits to drill now. Brent crude hit $139 per barrel on March 7, and some traders are even betting that oil will reach $200 per barrel by the end of the month. It suggests American producers have been motivated by a desire to manipulate the market during the current crisis in Europe. 369,646 closed oil and gas leases. Biden said the oil industry has "9,000 permits to drill now. But its not as simple as Biden made it seem, because there are some steps before companies begin production. Here is the average price in each state. Get the latest updates from the 2024 campaign trail, exclusive interviews and more Fox News politics content. Government policies can either discourage or encourage oil producers to take the risk of investing billions of dollars, plus considerable time and effort, to find out whether or not the lands they lease are viable sources of oil. Before drilling can occur, the lease holder has to get a federal permit. In total, the oil industry now holds leases to roughly 25 million acres of public lands an area approximately the size of Kentucky. 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. The DOI has delayed issuing a congressionally five-year plan for offshore drilling and is weighing a complete block on such leasing through 2028. Turns out, thats wrong. 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. Before drilling can occur, the lease holder has to get a federal permit. 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. 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. Companies dont have to immediately begin drilling as their leases last 10 years and can be extended beyond that. American Petroleum Institue February 27, 2023. 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. 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. Biden said the oil industry has 9,000 permits to drill now. 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. "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. This is where were parked, right here on the edge of this big frack pit.. Your donation today powers the independent journalism that you rely on. "As of February 2023, companies have over 6,600 approved and unused drilling permits available on federal lands," the BLM said in a statement to Fox News Digital. (iStock). Joe Biden 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. 20006, Florida ", In 2020, the oil bust created worker and supply shortages and caused companies to cut their budgets. 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. But it does import some of its oil from Russia, The U.S. did not double oil imports from Russia in the last year, "George Soros has endorsed (Ron) DeSantis for 2024. The U.S. has more than 24 million acres under lease to oil and gas companies onshore close to half are not producing. He contended that the onus is on U.S. oil and gas companies that have permits to begin drilling, but havent started. Having thousands of unused drilling permits is not something that is unique to Bidens tenure. For just $5/month, you can help sustain Marketplace so we can keep reporting on the things that matter to you. 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. Please read our Terms & Conditions, Cookies Policy and Privacy Policy before using the site. They could be drilling right now, yesterday, last week, last year. Cohorn at Henry Resources said his land and legal crew started acquiring mineral leases in 2016. Powered and implemented by FactSet Digital Solutions. Private property is also where almost all of the oil in this part of Texas comes from. Are gas prices going up? The average barrels of crude oil produced per day spiked during Trumps subsequent years, swelling to almost 12.3 million in 2019. The second, by some industry opponents, is that ramping up U.S. production will not help the Ukrainian people today. Is Biden sharing all the facts here? Mutual Fund and ETF data provided by Refinitiv Lipper. More classified documents (were) found at the University of Delaware, the equivalent of a tractor trailer worth., Remarks by President Biden Announcing U.S. Ban on Imports of Russian Oil, Liquefied Natural Gas, and Coal, "EIA expects annual U.S. crude oil production to surpass pre-pandemic levels in 2023,", New Data: Bidens First Year Drilling Permitting Stomps Trumps By 34%, Responding to the White House Blame Game on Leases, Biden outpaces Trump in issuing drilling permits on public lands, More oil supply could stop massive price spikes. AP Photo/Matthew Brown, File. After Joe Biden became vice president, at the behest of his father, he gave his uncle, Frank H. Biden, a Purple Heart for serving in the U.S. military during World War II. 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 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. Thousands of unused permits are not uncommon in any presidential administration. It took us all of probably three to four years to consolidate enough acreage to start drilling to begin with, he said. At the end of 2021, there were 9,173 approved and available permits to drill on federal and Indian lands. Inform me please. In this case, we reached out to some of our original experts for the story, who told us Bidens overarching point remained valid, as were the caveats we mentioned in our original article. Posted on 3/6/22 at 5:22 pm to Negatiger1986. But its not as simple as Biden made it seem, because there are some steps before companies begin production. The American Petroleum Institute admonished the administration for its "inaccurate and misleading numbers" and called on Biden to "support American production.". So this is a map of our acreage, he said, referring to an area between 6,000 and 7,000 acres in size. This is what we mean by American energy leadership: using abundant American energy as a positive influence that benefits Americas friends. Biden again reiterated that there are 9,000 unused oil drilling permits on federal lands, and called on Congress to make oil companies pay fees on wells from leases that they "haven't used in years and on acres of public . She added that oil and gas companies have been limiting costs and . "Oil and gas companies already have leases the size of Indiana," said Sen. Ed Markey (D-Mass.) 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. 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.. As Sommers noted in a recent blog, the administration should provide clarity on federal leasing and permit energy infrastructure. The number of "approved oil leases" (presumably Federal mineral leases) is not an answer to that question. Before drilling can occur, the leaseholder has to get a federal permit. They could be drilling right now, yesterday, last week, last year. 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