Energy industry representatives pushed back on a comment from White House Press Secretary Jen Psaki Monday regarding unused oil and gas leases, accusing the Biden administration spokesperson of misleading Americans with a “red herring.” [bold, links added]
Fox News asked Psaki Monday why President Biden won’t resume new oil and gas leases on federal lands.
She responded that the United States is already producing oil “at record numbers” and said, “there are 9,000 approved drilling permits that are not being used.”
“So the suggestion that we are not allowing companies to drill is inaccurate,” she added. “I would suggest you ask the oil companies why they’re not using those if there’s a desire to drill more.”
But industry representatives at the CERAWeek energy conference sponsored by S&P Global Monday said the answer is not as simple as Psaki suggested.
“So the suggestion that we are not allowing companies to drill is inaccurate,” she added. “I would suggest you ask the oil companies why they’re not using those if there’s a desire to drill more.”
But industry representatives at the CERAWeek energy conference sponsored by S&P Global Monday said the answer is not as simple as Psaki suggested.
Sommers added: “Right now we actually are developing more leases than we have in two decades so the White House certainly doesn’t have their facts straight on this.”
Energy Workforce and Technology Council CEO Leslie Beyer similarly said “some permits are viable and some are not,” as a reason for why many are sitting unused. The federal leasing moratorium also isn’t helpful in the current energy environment, she said.
“The moratorium on leasing certainly adds an additional… block to American energy production, so that is the opposite of what we need to be doing right now,” she said.
“We need to stop the rhetoric that’s anti-fossil fuel and we need some clarity just in the regulatory sense that this administration is behind domestic energy production.”
Energy industry representatives told FOX Business at CERAWeek Monday that the U.S. is effectively at its capacity for oil and gas production under the current regulatory framework.
They said that it would take at least months or even years of investment in extraction and infrastructure to significantly increase output and potentially backfill Europe’s energy needs, which are currently filled by Russia.
But the administration needs to create the proper regulatory environment for that to happen, they said.
“There’s a lack of investment,” Beyer said. “We need capital to be able to develop these assets. And certainly, while that is the choice of the investors, the rhetoric coming from the administration and everything that is anti-fossil fuel informs those choices.”
Many Republicans – and even some Democrats – are pushing the Biden administration to allow for more energy production in the U.S. amid Russia’s war with Ukraine.
Much of Europe is reliant on Russia for its energy, and they suggest if the U.S. increases its production and export capacity it could help Europe wean itself from Russian energy that’s being used to fund the war against Ukraine.
Read rest at Fox Business
Biden and his Rougues Gallery of Fiends,Cads and Scoundrels all belong into Prison for Treason
From what I heard on the radio this morning, those 9,000+ sites haven’t even been seismic surveyed. Just for starters that doesn’t happen “overnight”.
Spent six years with United Geophysical Corp in the 1960’s, seismic exploration. Jug hustler, Junior Observer, Observer, Playback Operator – then I got married. In those six years I lived and/or worked in five different countries – great for a young single man. The first recording gear I worked with used vacuum tube amplifiers, all analog of course. Equipment has changed, but it still takes time, money and sweat to do a survey. Only then, if a promising formation is found, can a big rig be called in. Gidgealpa #1 (South Australia) was drilled too far off the top of the structure – water – undrinkable. Drill again. Time and money, time and money…..
(If any ex-UGC bod happens to read this, I was known as “Feathers” – and I still wear a beard.)
I think most folks confuse “leases” with “drilling permits.” If I recall correctly. Ms. Psaki stated “9,000 drilling permits.” I question that figure as illustrated in my two comments. At present, I believe there is (something) like 30,000+/- oil & gas leases issued on the federal domain. As you are probably aware, you don’t file for a drilling permit on any federal lease until extensive review & needed technical analysis has been completed on your lease. You may have to obtain contractual arrangements with operators on offsetting leases (farmouts), not to mention looking at right-of-ways for road access & potential pipelines. The filing of an Application for Permit to Drill (APD) will “trigger” NEPA, so you have to do a complete environmental review with probable EA or possibly an EIS, depending on the scale of the project. So, the BLM (onshore) or BOEM (offshore) don’t hand out drilling permits like candy. I might add that you ALSO have to obtain a State drilling permit with any additional terms & conditions. That is just a BRIEF synopsis of the process. So, put me in the “skeptic” category on the 9,000 available & “unused” APDS…
I was REMISS on my earlier comment. I left out some additional (very important) questions for Ms. Psaki that Fox’s reporter Peter Doocey didn’t ask: 1.) Of those 9,000 drilling permits supposedly on the “shelf,” how many of those have completed NEPA (DNA’s, EA’s & EIS) where proponents can immediately ACT on them? 2.) How many of those supposed approved APD’s are larger projects (like Willow in Alaska) that are tied up in ENDLESS environmental NGO litigation? 3.) How many of those APD’s are “stalled” due to lack of industry financing promoted by ESG standards being forced on the domestic banking system? Face it. The Biden energy policies are short sighted & ill advised. You can run Jen, but you can’t hide. Like the old saying goes: “If you want the right answers, then START asking the RIGHT questions”…
OK, so where did you get that 9,000 drilling permit number? Are those approved or pending? Is that (supposedly) what is on federal lands (onshore & offshore) or are those including state issued permits on private lands? Do you realize that actually, about 85% of our domestic onshore oil & gas production is on PRIVATE lands? Do you realize that federal leases are issued for a 10 year term due to the long lead times needed to develop & produce your leasehold? So, this is a “red herring” as the person at the microphone, respectfully, has little or NO IDEA how the extraction process actually works. I’d submit the VAST majority of her activist collogues in the White House share her lack of expertise. I’ll take a nuanced & complex process & make this simple. Look at oil & gas exploration & development just like you are “panning for gold.” It takes a LOT of acreage & a tedious process to sift through the MUD & identify the “nuggets” in your pan. One last point. You can’t just RAMP UP domestic oil & gas production. The declines of 2- 2.5 million barrels/day of production lost during the pandemic will take several years to recover. There is no “Tap” to turn on. Buckle your seatbelts. We’ll continue to be on a “bumpy” ride…