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. Corporate strategy has fundamentally changed.". (AP Photo / Susan Walsh / File). 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. ", "They are under pressure from the financial community to pay more dividends, to do more share buybacks instead of the proverbial 'drill, baby, drill,' which is the way they would have done things 10 years ago. Before they could start drilling, they had to negotiate with the folks who own the land. A shale well, for example, could cost about $7 million to drill. Biden said the oil industry has "9,000 permits to drill now. Before drilling can occur, the leaseholder has to get a federal permit. 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. Investors remain reluctant to invest in fossil fuels. Many of the drilling permits held by industry and 60 percent of the acreage leased to oil producers sits unused, she said. "They have 9,000 permits to drill now. 5 withdrawn oil and gas leases. 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. With oil at $120 or more, drilling there is wildly profitable.". Before drilling can occur, the lease holder has to get a federal permit. 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. The DOI has delayed issuing a congressionally five-year plan for offshore drilling and is weighing a complete block on such leasing through 2028. "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 . And any company that wanted to start drilling on those 9,000 federal leases would face the same problems. The Bureau of Land Management, which oversees oil and gas development on federal lands, updated its tally in an end-of-the-year report that shows that figure instead should have been much less, standing at about 6,600 untapped permits as of this month.. The first, by some members of the Biden administration, including White House Press Secretary Jen Psaki on Thursday, is that American oil and natural gas producers are sitting on hundreds of unused federal leases and thus do not need access to more. Production peaked at 13 million barrels a day under the Trump administration. Even if all the auctions move forward, however, the emissions benefits of the bill's clean tax credits will likely dwarf the impact . The only thing that "the administration" could do to increase oil production, would be to get the hell out of the way. 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. REPUBLICANS UNVEIL EFFORT TO REMOVE BIDEN ADMIN'S BARRIERS BLOCKING OIL AND GAS DRILLING, 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. The oil and gas industry has a substantial number of unused permits to drill onshore. 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. Pavel Molchanov, an analyst at Raymond James, told CNN Business that "oil and gas companies do not want to drill more. For more than a year it has halted new federal leasing key to future energy investment and production. The American Petroleum Institute admonished the administration for its "inaccurate and misleading numbers" and called on Biden to "support American production.". 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. Why is fracking for natural gas important? 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 . 54,657 authorized oil and gas leases. Most of the time, its rented equipment. ", "Florida's water is dirtier and sicker than when Gov. President Joe Biden. President Biden says he wants more domestic oil production but he is doing nothing positive to make that happen. Is Biden sharing all the facts here? White House, Remarks by President Biden Announcing U.S. Ban on Imports of Russian Oil, Liquefied Natural Gas, and Coal, March 8, 2022, U.S. Energy Information Administration, "EIA expects annual U.S. crude oil production to surpass pre-pandemic levels in 2023," Jan. 11, 2022, Bureau of Land Management, Applications for permits to drill, December 2021. How Many Jobs Has the Oil and Natural Gas Industry Created? Washington, DC 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? Previously, he worked as a reporter for Axios, where he covered, Amy Sherman is a staff writer with PolitiFact based in South Florida. So the surface pads, as you can see from here, its kind of hard to see. PolitiFact: Biden right oil industry has over 9,000 permits to drill. So it simply wasnt profitable to drill with oil below $70. FOSSIL FUEL PROFITS ARE VITAL FOR GREEN ENERGY PROJECTS DEMS ROUTINELY TOUT. Market data provided by Factset. "Oil and gas companies already have leases the size of Indiana," said Sen. Ed Markey (D-Mass.) 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. 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. Biden said the oil industry has "9,000 permits to drill now. Then again, do Fox News viewers care? 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. Your donation today powers the independent journalism that you rely on. some 40% of the mineral acreage leased by companies goes unused . From cancelling the Keystone XL pipeline, to refusing to hold Federal leases sales, to threatening to refuse to . We bring in a vendor, its their drilling rig, their frack crew, they outfit with their own workforce to make the work happen. See the sources for this fact check hereand more of their fact checkshere. "Families cant afford that companies sit on their hands. The Biden administration has also dragged its feet on oil and gas lease sales, only holding sales when directed by either federal courts or the Inflation Reduction Act. It sits about an hour outside Midland and its where Henrys crews are fracking for oil. 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 . ", "By the way, one thing I want to say about the oil companies: They talk about how we have they have 9,000 permits to drill," he added months later. 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. In other words, 9,000 chances to increase the supply of oil and gas and drive down prices. Out in the Midland Basin, a whole slew of ranchers own the rights to the oil underground. 2023 FOX News Network, LLC. a bipartisan bill with Senator Chuck Grassley of Iowa to modernize the federal oil and gas program's outdated . But its not as simple as Biden made it seem, because there are some steps before companies begin production. He said not only is labor in short supply, but steel pipe and other equipment are on back order for months. One of PolitiFacts longstanding principles is to rate fact-checks based on evidence available at the time. And wells that have been drilled need to be maintained. 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. 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. OScannlain is a graduate of the College of the Holy Cross and Notre Dame Law School. But in Alaska, Willow represents the biggest oil field in . The authors forecasted the future of oil and gas production on federal . The lengthy process to develop them from a lease often is extended by administrative and legal challenges at every step along the way. It suggests American producers have been motivated by a desire to manipulate the market during the current crisis in Europe. The current situation is a reminder that American energy abundance requires foresight and planning, investment and policy support. Companies dont have to immediately begin drilling as their leases last 10 years and can be extended beyond that. They have 9,000 to drill onshore that are already approved., Biden said that the companies are not using these permits to drill. Here is the average price in each state. And the bottom line is, if people like Mike Oestmann and Patrick Cohorn could drill more, they would. 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. It took us all of probably three to four years to consolidate enough acreage to start drilling to begin with, he said. Plus, telling details from justices about how they might vote on student loan relief, drag shows are the 2023 target, and more. Does Fracking Cause Flaming Water Faucets? Then, an electrical submersible pump, or ESP, was sucked down into the well. Late last . 2023 FOX News Network, LLC. "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.". Closer to downtown Midland, Mike Oestmann drove me around a frack site to see how things are progressing. Legal Statement. Specifically, they impact the ability of producers typically accountable to shareholders to take the risks involved in spending billions of dollars to find and develop oil and gas. "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. Instead, the administration discouraged American energy. Pavel Molchanov, an analyst at Raymond James, told CNN Business that "oil and gas companies do not want to drill more. Biden has a point that the U.S. produced more during his first year than Trumps first year. 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. ", "I got a list of 20 jurisdictions that defunded the police to the tune of over $1 billion total. 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. The U.S. has more than 24 million acres under lease to oil and gas companies onshore close to half are not producing. Before drilling can occur, the lease holder has to get a federal permit. 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 revenue reported includes the first year's rent of $1.50 per acre, a bonus bid of not less than $2 an acre, and an administrative fee. Photo of electric charging station powered by diesel generator is emblematic of the electric vehicle movement. Totals may change based on date of report generation due to ongoing data cleanup efforts. A frack pit is basically a pond full of water thatll be used to help force oil out of the ground. 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. Technically, theres some truth there because, indeed, increasing American oil and gas production will not help Ukraine today. . | Terms & Conditions | Privacy, Psaki has made the claim about unused federal leases, Pipeline Strategic Data Tracking System (PSDTS). Get the latest updates from the 2024 campaign trail, exclusive interviews and more Fox News politics content. Oil, Biden Has Earned 11 Pinocchios From Fact-Checkers During Coronavirus Crisis, GOP Hawks Say the Only Thing Cut From the Pentagon Will Be 'Wokeness'. Quotes displayed in real-time or delayed by at least 15 minutes. Companies dont have to immediately begin drilling as their leases last 10 years and can be extended beyond that. Official govt docs expose Michelle Obamas 14 year history as a man., "Woody Harrelsons 60 seconds in the middle of his monologue was cut out of the edits released after the show., BREAKING Trump preps Marines to stop presidential coup.. It is republished here with permission. 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.. March 8, 2022 There are 9,000 unused oil and gas leases on Federal lands that the companies have not touched. Fossil Fuels Ultimately, energy policies affect the energy investment climate. These are the facts. The Biden administration has canceled one of the most high-profile oil and gas lease opportunities pending before the Interior Department. . So, I took a trip out to ground zero for domestic oil and gas production Texas Permian Basin to hopefully bring some back. ", While it was already established that this claim is misleading, new reporting reveals that the underlying number isnt even accurate. They have 9,000 to drill onshore that are already approved. There are more than 9,000 permits to drill oil on federal lands, as President Biden . With oil at $120 or more, drilling there is wildly profitable.". Those permits . Biden Administration All rights reserved. Biden's Interior Department quietly updated its list of unused permits to reflect a much lower figure: 6,600, E&E News reported Monday.The department, which manages oil and gas drilling on federal . I cant get the people to do the work, Oestmann said. Biden said the oil industry has "9,000 permits to drill now. At the same time, this is a really profitable business, especially with West Texas Intermediate trading at close to $100 a barrel. 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. Gas Prices Prior to that, he was an attorney for Chevron, DLA Piper LLP, and the U.S. Senate. They could be drilling right now, yesterday, last week, last year.. ", "Ron DeSantis voted to cut $473 billion from Medicare. They could be drilling right now, yesterday, last week, last year. ", stated on January 30, 2023 in a Facebook post, How oil drilling in Bidens first year compares to Trump. The president suggested the onus is on the industry to start drilling. . Those guys are tripping in and out to go in and try to latch on to that ESP and try to pull it out, Cohorn said. Before drilling can occur, the lease holder has to get a federal permit. The Biden campaign's crusade against fossil fuelswhich helped the Democrat appeal to young liberal votershas made many U.S. oil companies wary of investing in new drilling operations given the long-term political risk, the Washington Post reported last year. 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. ", 60% of counties in this country are refusing to implement the nation's gun laws.. The White House did not return a request for comment. That's true, but all work can't begin 'right now'. I took a trip out to ground zero for domestic oil and gas production Texas' Permian Basin . 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. 236.31. 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. Nearly three quarters of all active . Oilfield Electrification Technology Conference. Companies dont have to immediately begin drilling as their leases last 10 years and can be extended beyond that. He contended that the onus is on U.S. oil and gas companies that have permits to begin drilling, but havent started. Sometimes there might not really even be producible oil and gas on a lease, Daigle said. 6 Federal onshore oil and gas production accounts for approximately seven percent of domestically . Sign up for the daily Marketplace newsletter to make sense of the most important business and economic news. Feb 2021 Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan 2022 Feb 0 100 200 300 400 500 600 700. 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. Through it all, Marketplace is here for you. All Rights Reserved. Producers also have to put a drilling plan together, secure rights of way and work with state and private landowners, Pett said. 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. "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. President Biden strongly encouraged made-in-the-USA production during his State of the Union address this week but omitted home-grown oil and gas. Lets address two claims heard about American natural gas and oil production amid the ongoing Russia-Ukraine crisis. Some companies choose not to drill for corporate reasons because they can raise funds from investors by not drilling on leases with proven reserves. 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.. All Rights Reserved. The number of "approved oil leases" (presumably Federal mineral leases) is not an answer to that question. 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