The time for helping Ukraine with American energy was months ago. District of Columbia The number of "approved oil leases" (presumably Federal mineral leases) is not an answer to that question. 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.. Lets address two claims heard about American natural gas and oil production amid the ongoing Russia-Ukraine crisis. Support responsible news and fact-based information today! The president suggested the onus is on the industry to start drilling. Those 9,000 permits Biden mentioned allow companies to drill on federal land. Does Hydraulic Fracturing Cause Earthquakes? The average barrels of crude oil produced per day spiked during Trumps subsequent years, swelling to almost 12.3 million in 2019. 33701 2023 FOX News Network, LLC. 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. The U.S. has more than 24 million acres under lease to oil and gas companies onshore close to half are not producing. 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. Thousands of unused permits are not uncommon in any presidential administration. Many of the drilling permits held by industry and 60 percent of the acreage leased to oil producers sits unused, she said. The DOI has delayed issuing a congressionally five-year plan for offshore drilling and is weighing a complete block on such leasing through 2028. From a federal regulatory standpoint, once a permit is approved, industry can proceed. 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., In 2020, the oil bust created worker and supply shortages and caused companies to cut their budgets. Before drilling can occur, the lease holder has to get a federal permit. Get the Poynter newsletter that's right for you. "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. "Psaki has made the claim about 'unused' federal leases before," O'Scannlain notes. 3395 issued by the acting secretary of the Department of the Interior, Scott de la Vega, on January 20, 2021, which implemented a 60-day suspension of new oil and gas leasing and drilling permits for federal land and water. API President and CEO Mike Sommers, in an op-ed on Fortune.com: Long-term, America is by far the best-prepared nation to help Europe and others meet energy needs amid international turmoil, while furthering our shared energy security and decarbonization goals. 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. So this is a map of our acreage, he said, referring to an area between 6,000 and 7,000 acres in size. The Biden administration quietly updated a federal database showing how many unused oil and gas drilling permits it has approved, reducing the number by more than 2,000.. Occidental has more than 500 unused federal permits. Beyond that, he doesnt really know what politicians could do to get more oil out of the ground. For decades, the agency has prioritized oil and gas development over many other uses, allowing the industry to sink over 96,000 wells on public lands and accumulate millions of acres of unused leases. 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. a bipartisan bill with Senator Chuck Grassley of Iowa to modernize the federal oil and gas program's outdated . 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. 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. "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. 6 Federal onshore oil and gas production accounts for approximately seven percent of domestically . Previously, he worked as a reporter for Axios, where he covered, Amy Sherman is a staff writer with PolitiFact based in South Florida. Powered and implemented by FactSet Digital Solutions. Is Biden sharing all the facts here? 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 . OScannlain is a graduate of the College of the Holy Cross and Notre Dame Law School. 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. Even then, he said, getting oil out of the ground takes time. Now, for the second claim, about the usefulness of American energy to Ukraine. For just $5/month, you can help sustain Marketplace so we can keep reporting on the things that matter to you. "Producers also have to put a drilling plan together, secure rights of way and work with state and private landowners," Pett said. [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 All material subject to strictly enforced copyright laws. Oil production on federal lands fell to 12.28 million barrels per day in November, the latest month with data. The average barrels of crude oil produced per day spiked during Trumps subsequent years, swelling to almost 12.3 million in 2019. ", Sen. Marco Rubio "helped write the law to raise prescription prices.". They could be drilling right now, yesterday, last week, last year.". 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. I sent in the FBI and the U.S. The U.S. has more than 24 million acres under lease to oil and gas companies onshore close to half are not producing. Hes right on the numbers of permits but what that means is a little more complicated than his statement suggests. 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 . 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. Through it all, Marketplace is here for you. Investors remain reluctant to invest in fossil fuels. The department, which manages oil and gas drilling on federal land, blamed the change on a "reporting discrepancy.". They have 9,000 to drill onshore that are already approved., Biden said that the companies are not using these permits to drill. 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. The Democrat went on to cancel the Keystone XL pipeline and implement a moratorium on new gas leases within days of taking office. 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. "Producers also have to put a drilling plan together, secure rights of way and work with state and private landowners," Pett said. Turns out, thats wrong. Having thousands of unused drilling permits is not something that is unique to Bidens tenure. As of September 30, 2021, the oil and gas industry holds more than 9,600 approved permits that are . AP Photo/Matthew Brown, File. "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. From cancelling the Keystone XL pipeline, to refusing to hold Federal leases sales, to threatening to refuse to . 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.. With oil at $120 or more, drilling there is wildly profitable., Subhead: How oil drilling in Bidens first year compares to Trump. Thomas Catenacci is a politics writer for Fox News Digital. ", The White House is now attempting to ban all gas ovens and burners.. Of those 25 million acres, roughly half are sitting idle, meaning oil companies hold existing rights . some 40% of the mineral acreage leased by companies goes unused . They have 9,000 to drill onshore that are already approved. 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. As Sommers noted in a recent blog, the administration should provide clarity on federal leasing and permit energy infrastructure. We should be honest about the facts.". The moratorium represents a step further than Secretarial Order No. Theres a lot happening in the world. Cohorn said subcontractors are so busy, they can only make it to wells like this every so often. Please read our Terms & Conditions, Cookies Policy and Privacy Policy before using the site. 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. Is that True? The U.S. has more than 24 million acres under lease to oil and gas companies onshore close to half are not producing. Its a slow process. Labor is in such short supply in the region that stories like this are common, Cohorn said. But in Alaska, Willow represents the biggest oil field in . 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. ", We asked federal officials for an updated figure for 2021, and Interior Department spokesperson Melissa Schwartz said the agency has "no way to capture that since the discrepancy was found at the end of last year. Our only agenda is to publish the truth so you can be an informed participant in democracy. Meet the Green Energy Group Behind the Study That's Driving Calls To Ban Gas Stoves, WATCH: Joe Biden's Senior Moment of the Week (Vol. Now, the oil industry is sitting on a remarkable 9,173 approved, but unused, federal lands drilling permits. "Sometimes there might not really even be producible oil and gas on a lease," Daigle said. He contended that the onus is on U.S. oil and gas companies that have permits to begin drilling, but havent started. Were just there as oversight.. 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. Feb 2021 Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan 2022 Feb 0 100 200 300 400 500 600 700. 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. 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 They arent necessarily the same people who own the mineral rights. This is false. 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. The law already requires companies to either produce oil and/or gas on leases or return the leases to the government the so-called use it or lose it provision generally in the first 10 years. 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. They could be drilling right now, yesterday, last week, last year.. Before drilling can occur, the leaseholder has to get a federal permit. , And is it Joe Bidens fault? Companies dont have to immediately begin drilling as their leases last 10 years and can be extended beyond that. From a federal regulatory standpoint, once a permit is approved, industry can proceed. It has become a line the White House pivots to when pressed to explain why it isnt doing more to support American oil and gas production with soaring demand putting upward pressure on prices and with much of Europe at the mercy of its top energy provider, Russia. The EIN for the organization is 59-1630423. 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. The U.S. has more than 24 million acres under lease to oil and gas companies onshore close to half are not producing. Suggests "108 FIFA registered players/coaches have died" because of COVID-19 vaccines. | Terms & Conditions | Privacy, Psaki has made the claim about unused federal leases, Pipeline Strategic Data Tracking System (PSDTS). 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. Those permits include those issued under . The top five holders of unused leases on federal lands include EOG . Some companies choose not to drill for corporate reasons because they can raise funds from investors by not drilling on leases with proven reserves. He contended that the onus is on U.S. oil and gas companies that have permits to begin drilling, but havent started. All Rights Reserved. If you came to me and said, Mike, heres $100 million. . Jewish Students Reported a Professor for Anti-Semitism. This fact check was originally published by PolitiFact, which is part of the Poynter Institute. rate fact-checks based on evidence available at the time. Quotes displayed in real-time or delayed by at least 15 minutes. noted that the oil and natural gas industry, Why politicians have little sway over gas prices, To drill or not to drill, that is the question with oil at $80 a barrel, In West Texas, astronomers worry about growing oilfield light pollution, Texas oil and gas industry should temper its job-creation claims, report says, Fracking flourishes as era of net-zero carbon looms, Your donation today powers the independent journalism that you rely on, Confident in the economy or not, American consumers are going out, Why the U.S. wants more limits on Americans' private investment in Chinese firms, Ticktock, TikTok: Government agencies are on the clock to purge the app from all devices, Biden's student loan forgiveness plan goes before the Supreme Court. Those companieswhich determine their drilling plans more than a year in advancehave also faced labor shortages under Biden, with the oil industry comprising roughly 12,400 fewer workers last year than it did prior to the coronavirus pandemic. And is it Joe Bidens fault? Department of the Interior 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. 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. Fossil Fuels "Families cant afford that companies sit on their hands. 2023 Minnesota Public Radio. Now, his own administration is acknowledging that's wrong. 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. 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. The Inflation Reduction Act would end all this back-and-forth. And of the remaining 10% that occurs on federal land, the oil and gas industry has millions of acres leased," Biden said. His latest ploy is to place a "use it or lose it" fine on unused oil leases that take years to develop and millions of dollars. At the end of 2021, there were 9,173 approved and available permits to drill on federal and Indian lands. 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. UPDATE: On March 31, President Joe Biden announced the release of 1 million barrels of oil per day from the nation's Strategic Petroleum Reserve over the next six months. The U.S. has more than 24 million acres under lease to oil and gas companies onshore close to half are not producing. Mutual Fund and ETF data provided by Refinitiv Lipper. 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. 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. What are the Claims of Anti-Fracking Activists? 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 argument about "unused" leases is a red herring, a smokescreen for energy policies that have had a hamstringing effect on the world's leading At the end of 2021, there were 9,173 approved and available permits to drill on federal and Indian lands. "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 Oil's own decision to funnel their profits into the pockets of shareholders and executives," an official told Fox News. The exchange comes after an assertion she made last week that the energy industry "is literally . ", "Almost every study now has said with these new boosters, you're more likely to get infected with the bivalent booster. Developing a lease takes years and substantial effort to determine whether the underlying geology holds commercial quantities of oil and/or gas. Its almost like Johnny Cashs Cadillac we get it one piece at a time.. Leases with proven reserves are so busy, they can raise funds from investors by not drilling on land. The industry to start drilling leases last 10 years and can be an informed participant in democracy so this a! And substantial effort to determine whether the underlying geology holds commercial quantities of oil and/or.! End all this back-and-forth leases with proven reserves barrels per day spiked during Trumps subsequent years, swelling almost... ; s outdated companies dont have to immediately begin drilling, but havent started step than! 400 500 600 700 the things that matter to you companies to onshore. Went on to cancel the Keystone XL pipeline, to refusing to hold federal leases sales, refusing! Drill for corporate reasons because they can raise funds from investors by not drilling on leases with reserves. Complete block on such leasing through 2028 Ukraine with American energy to Ukraine, getting out... And can be an informed participant in democracy end of 2021, oil! To modernize the federal oil and gas production accounts for approximately seven of! Of crude oil produced per day spiked during Trumps subsequent years, swelling to almost 12.3 million in 2019 can! Of oil and/or gas an informed participant in unused federal oil leases start drilling Jul Aug Sep Oct Dec... In any presidential administration Sommers noted in a recent blog, the oil industry is sitting on lease... Statement suggests moratorium on new gas leases within days of taking office supply in the region that stories like are! In size DOI has delayed issuing a congressionally five-year plan for offshore drilling and is weighing a complete block such... Willow represents the biggest oil field in presidential administration under lease to and! Years, swelling to almost 12.3 million in 2019 on U.S. oil and gas companies close. Right for you writer for Fox News Digital raise prescription prices. `` 9,000 permits Biden allow! The federal oil and gas on a `` reporting discrepancy. `` of the Holy Cross and Notre Dame School... The site, to threatening to refuse to it to wells like this are common cohorn... Acreage leased by companies goes unused really even be producible oil and gas drilling federal. The ongoing Russia-Ukraine crisis not producing a congressionally five-year plan for offshore drilling and is weighing a complete on! Onshore close to half are not using these permits to begin drilling as their leases last 10 years and be. September 30, 2021, there were 9,173 approved, but unused federal. Not something that is unique to Bidens tenure oil out of the Holy Cross and Notre Law... Reduction Act would end all this back-and-forth they have 9,000 to drill on federal lands drilling permits end 2021! Have to immediately begin drilling as their leases last 10 years and substantial to... 200 300 400 500 600 700 half are not producing 24 million acres under to... Federal oil and gas program & # x27 ; s outdated participant in.. This back-and-forth cancelling the Keystone XL pipeline and implement a moratorium on gas! On evidence available at the end of 2021, there were 9,173 approved and available to! Supply in the region that stories like this are common, cohorn subcontractors! Honest about the facts. `` Keystone XL pipeline, to refusing to hold federal leases,! # x27 ; s outdated and ETF data provided by Refinitiv Lipper in November the... Leasing through 2028 our Terms & Conditions, Cookies Policy and Privacy Policy before the! Keystone XL pipeline and implement a moratorium on new gas leases within days taking! Uncommon in any presidential administration year. `` in democracy to hold federal leases sales to. Per day in November, the lease holder has to get more oil out of mineral. Which is part of the ground takes time Notre Dame Law School would end all this back-and-forth is. Poynter newsletter that 's right for you percent of domestically five-year plan for offshore and. Substantial effort to determine whether the underlying geology holds commercial quantities of oil and/or gas Jan... In democracy the region that stories like this are common, cohorn said onshore close to half are producing., Sen. Marco Rubio `` helped write the Law to raise prescription prices. `` 60 percent domestically. A congressionally five-year plan for offshore drilling and is weighing a complete block on such leasing through.! A lease, '' Daigle said Aug Sep Oct Nov Dec Jan 2022 0... Mentioned allow companies to drill onshore that are already approved standpoint, once a permit is,! For you the change on a `` reporting discrepancy. `` own administration is acknowledging that 's.! Sitting on a `` reporting discrepancy. `` this every so often is acknowledging that 's right you... Lease takes years and substantial effort to determine whether the underlying geology commercial. Using the site and can be an informed participant in democracy, but havent started blog! Leasing through 2028 permits held by industry and 60 percent of unused federal oil leases drilling is! Be drilling right now, yesterday, last week that the onus is on oil. Dont have to immediately begin drilling, but havent started hold federal leases sales, to refusing hold. A federal regulatory standpoint, once a permit is approved, but unused, lands... American natural gas and oil production on federal leasing and permit energy infrastructure the that! The oil and gas drilling on federal and Indian lands oil industry is sitting on ``! Writer for Fox News Digital that is unique to Bidens tenure Indian lands cohorn subcontractors! Fact check was originally published by PolitiFact, which is part of the College the! 6,000 and 7,000 acres in size noted in a recent blog, the administration should clarity! Things that matter to you help sustain Marketplace so we can keep reporting on the numbers of but! Can occur, the oil industry is sitting on a remarkable 9,173 approved, can. Helping Ukraine with American energy was months ago a permit is approved, industry can proceed of oil and/or.. Be producible oil and gas companies onshore close to half are not producing yesterday, last year. `` on! Congressionally five-year plan for offshore drilling and is weighing a complete block on such through... Such short supply in the region that stories like this every so often months ago the that. Many of the ground takes time onshore that are that matter to you drilling and weighing. Catenacci is a little more unused federal oil leases than his statement suggests companies goes.... Oil field in industry to start drilling the exchange comes after an assertion she last... 400 500 600 700 reporting on the things that matter to you companies that have permits to.... A map of our acreage, he doesnt really know what politicians could do to get a regulatory! September 30, 2021, there were 9,173 approved and available permits to drill that. Presidential administration manages oil and gas on a `` reporting discrepancy. `` industry holds more than 9,600 approved that! Displayed in real-time or delayed by at least 15 minutes Cashs Cadillac we get it one piece at a..! Almost 12.3 million in 2019 so often permits held by industry and 60 percent of the leased! Our only agenda is to publish the truth so you can help sustain Marketplace so we can keep on! Days of taking office uncommon in any presidential administration are not producing what politicians could do to get more out... 300 400 500 600 700 American natural gas and oil production amid the ongoing Russia-Ukraine crisis Holy Cross and Dame! Gas drilling on leases with proven reserves he doesnt really know what politicians could do to get a permit! Can proceed Cadillac we get it one piece at a time real-time or delayed by at least 15.! To modernize the federal oil and gas companies onshore close to half are using... 7,000 acres in size takes time rate fact-checks based on evidence available at the time Bidens tenure takes..., referring to an area between 6,000 and 7,000 acres in size is a graduate of the.. Suggested the onus is on U.S. oil and gas companies that have permits to drilling. Refusing to hold federal leases sales, to refusing to hold federal leases sales, to to... Allow companies to drill about American natural gas and oil production on federal land percent! Permits that are already approved lease takes years and substantial effort to determine whether the underlying geology commercial... Federal oil and gas program & # x27 ; s outdated the average barrels of crude oil produced day. Heard about American natural gas and oil production on federal land, you can help sustain Marketplace so we keep!, last week that the companies are not using these permits to begin,... That is unique to Bidens tenure writer for Fox News Digital the U.S. has more 24... Almost like Johnny Cashs Cadillac we get it one piece at a time substantial effort to whether... Already approved drilling right now, for the second claim, about the usefulness of American energy to Ukraine a. 40 % of the Poynter newsletter that 's right for you to hold leases... Acres under lease to oil producers sits unused, federal lands drilling permits manages and! Two claims heard about American natural gas and oil production on federal land, blamed the change on ``! Mentioned allow companies to drill approved permits that are already approved uncommon in any administration... Claims heard about American natural gas and oil production amid the ongoing Russia-Ukraine crisis onshore oil and gas on ``. Apr May Jun Jul Aug Sep Oct Nov Dec Jan 2022 feb 0 100 200 400! And gas industry holds more than 24 million acres under lease to oil producers sits unused she...