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Biden calls for ‘use it or lose it’ policy for oil leases on federal land (1 Viewer)

What a dummy Biden is. He has no clue how that stuff actually works. You get a lease to explore for oil. Thats the point of the lease. Which if you find it then you get the permits to drill pump and transport it.
The problem is that oil companies are sitting on thousands of oil leases and do nothing with them, NOTHING. If companies are doing actual exploring on their leases, they will not lose them as that is part of using the leases.
 
The problem is that oil companies are sitting on thousands of oil leases and do nothing with them, NOTHING. If companies are doing actual exploring on their leases, they will not lose them as that is part of using the leases.
How many thousand?

Did you know the Biden administration reduced them to about 9,000 total, from I think 37,000?
 
In post 18, the link is about 180 million barrels released from the strategic reserves.

Just how much of an F'n idiot is Biden? This is for emergencies. High gas prices are not an emergency. What if he depletes these reserves, and starts WWII with his interferance between Russia and Ukraine?

Let's Go Brandon!
Then the right will quit bitching about gas prices?
LOL. If he starts WWII(I).
 
The problem is that oil companies are sitting on thousands of oil leases and do nothing with them, NOTHING. If companies are doing actual exploring on their leases, they will not lose them as that is part of using the leases.
Stopwatch MSM, and use your common sense. No oil company will sit on thousands of oil and do nothing at this oil price. Looking at history, when the oil price is about the production cost, all oil companies in N.A. will rush to pump oil out because no oil company can set the oil price and the oil price can drop below production cost tmw. The oil company doing nothing is because of Biden's energy policies.

BTW, I went to school for PE in E&P before I changed to CS.
 
To look for it and maybe do a couple of test wells to see what is there quantity wise and determine if it is worth pursuing further. Most leases don't have oil profitable enough to pursue producing.
The point is that they are doing NOTHING with many leases and that needs to change. Use it or lose it.
 
Stopwatch MSM, and use your common sense. No oil company will sit on thousands of oil and do nothing at this oil price. Looking at history, when the oil price is about the production cost, all oil companies in the US will rush to pump oil out because no oil company can set the oil price and the oil price can drop below production cost tmw. Oil company doing nothing is because of Biden's energy poilicies.
LOL The fact is that is what they are doing. History show that oil prices can come down as fast as they go up. The oil companies themselves have stated that they are not in any rush to increase capacity and will concentrate on profits for shareholders instead.

US oil companies are in no rush to solve Biden's gas price problem​

US oil output is lower than before Covid

Normally, the best cure for high prices is high prices, which incentivize more supply. And yet, even though US oil prices have surged by more than 65% this year, US oil production is about 14% below the levels of the end of 2019, before Covid erupted.
"Stop spending like drunk sailors. That's the message from shareholders," said Pavel Molchanov, an analyst at Raymond James.

That message was heard loud and clear. Despite higher prices, 50 of the largest oil companies have increased their annual budgets by just 1% relative to their initial plans, according to Raymond James. Instead of plowing money into expensive drilling projects, the oil-and-gas industry is focused on returning cash to shareholders.

"It's not the government that is banning them from drilling more. It's pressure from their shareholders," said Molchanov.

https://www.cnn.com/2021/11/10/energy/oil-gas-prices-joe-biden/index.html
 
So you can't.

That's pretty much what I expected.
I am not. Not that I can't. It requires me revealing myself so you can see the billing, orders, and contracts etc.. Sorry that ain't happening, one that info is hard won by myself and I ain't giving it away for free and two its a breach of trust to reveal specific details of specific happenings that I was involved in. These companies don't want their business known by every tom dick and harry.

I have other businesses I write about occasionally, you notice I don't ever give details on those businesses and any contracts I may have. All you know is I have contracts, and some are with the government. That's it. I don't get very specific with what I am doing or have done. All I am doing is for certain subjects of which I happen to be involved it is presenting myself as having first hand knowledge of going on in those industries. That being oil logistics and transportation, general logistics and trucking specifically, engineering in aerospace airframes, propulsion and control systems.
 
I am not. Not that I can't. It requires me revealing myself so you can see the billing, orders, and contracts etc.. Sorry that ain't happening, one that info is hard won by myself and I ain't giving it away for free and two its a breach of trust to reveal specific details of specific happenings that I was involved in. These companies don't want their business known by every tom dick and harry.

I have other businesses I write about occasionally, you notice I don't ever give details on those businesses and any contracts I may have. All you know is I have contracts, and some are with the government. That's it. I don't get very specific with what I am doing or have done. All I am doing is for certain subjects of which I happen to be involved it is presenting myself as having first hand knowledge of going on in those industries. That being oil logistics and transportation, general logistics and trucking specifically, engineering in aerospace airframes, propulsion and control systems.
So you can't.

That's pretty much what I expected.

You are dismissed, crawl back to your hole now.
 
The point is that they are doing NOTHING with many leases and that needs to change. Use it or lose it.
Good luck with that strategy. There are not near as many wildcat companies anymore to take up the slack and the one that are left are hard pressed to do more. That leaves Chevron and the other big boys, and they are going to do as they see fit.
 
So you can't.

That's pretty much what I expected.

You are dismissed, crawl back to your hole now.
Not. There's difference. I am going to stay and play just so I can piss in your cheerios. (y).
 
So gas prices are not too high? That's the underlying problem at issue here.
I presume you did not read the article? The discussion about existing leases/permits is to encourage production from operating facilities that refuse to ramp up production because the high cost of oil is making them record profits.

Define “too high”. My answer would be that prices reflect the supply and demand of the various products and services involved.

If Democrats hadn’t been impeding supply of various things they would likely be lower. If that’s what you mean by “too high”.

The sad thing is Biden’s “solution” is more of the problem. This move inhibits the willingness to supply. If you add a bunch of punitive things to a lease, I’m going to be less likely to enter a lease. I’l certainly pay a lot less for it. If you start changing the rules mid-game, I’m going to be a lot less likely to play the game.

There’s an old saying in the energy industry: the cure for high prices is...high prices. The government’s role is to ensure safe and responsible development and otherwise just get out to the way.
 
This is a decent article which removes the politics of both sides

Excerpt:

“Investors have demanded that producers maintain capital discipline and grow volumes modestly. Returns have taken priority over growth. Up until recently, a producer planning to significantly grow production volumes would likely have been punished by investors. However, that sentiment may be changing with oil prices where they are and the potential need to replace Russian barrels on the global market.

The geopolitical situation and oil price level may give US producers a license to grow volumes more meaningfully. It takes time for producers to respond to prices, though, and the price signal was not strong enough for E&Ps to potentially veer from their plans for moderate growth until recently. Private producers have been able to ramp upstream activity more meaningfully given that they do not have to answer to a public investor base.”

Oil companies regularly lose money. In four of the past ten years, the oil industry lost money. Big oil lost $76 billion just two years ago. Therefore, they are proceeding with caution. They are maintaining more capital discipline. They aren’t rushing to do projects with the assumption that oil prices will remain above $100/bbl. They are doing projects with the assumption that in a year or more when the projects might pay off, oil prices will have retreated to well below $100/bbl.

On this issue, the Biden Administration is correct. The oil industry is going slow. But this belies a misunderstanding of how long it takes to execute a project. Oil companies don’t have crystal balls. They have to make decisions now based on where they think prices are headed. Because of multiple collapses in oil prices over the past decade, they are proceeding with more caution and capital discipline.

These are issues in which there seems to be a great deal of misunderstanding — which leads to finger-pointing — between the Biden Administration and the oil industry. Given the circumstances, as I wrote previously I believe the Biden Administration should convene a summit with the heads of the major oil companies. There should be frank dialogue, and the outcome should be clearly communicated to the world.

 
Good luck with that strategy. There are not near as many wildcat companies anymore to take up the slack and the one that are left are hard pressed to do more. That leaves Chevron and the other big boys, and they are going to do as they see fit.
No kidding. You mean Biden has no control over what the oil companies do? We know who to blame then.
 
Our energy model is too dependent on large for profit entities. I'm fine with people making money on energy, but there needs to be a more effective public sector competitor. Energy is a national security issue.
 
This is a decent article which removes the politics of both sides

Excerpt:

“Investors have demanded that producers maintain capital discipline and grow volumes modestly. Returns have taken priority over growth. Up until recently, a producer planning to significantly grow production volumes would likely have been punished by investors. However, that sentiment may be changing with oil prices where they are and the potential need to replace Russian barrels on the global market.

The geopolitical situation and oil price level may give US producers a license to grow volumes more meaningfully. It takes time for producers to respond to prices, though, and the price signal was not strong enough for E&Ps to potentially veer from their plans for moderate growth until recently. Private producers have been able to ramp upstream activity more meaningfully given that they do not have to answer to a public investor base.”

Oil companies regularly lose money. In four of the past ten years, the oil industry lost money. Big oil lost $76 billion just two years ago. Therefore, they are proceeding with caution. They are maintaining more capital discipline. They aren’t rushing to do projects with the assumption that oil prices will remain above $100/bbl. They are doing projects with the assumption that in a year or more when the projects might pay off, oil prices will have retreated to well below $100/bbl.

On this issue, the Biden Administration is correct. The oil industry is going slow. But this belies a misunderstanding of how long it takes to execute a project. Oil companies don’t have crystal balls. They have to make decisions now based on where they think prices are headed. Because of multiple collapses in oil prices over the past decade, they are proceeding with more caution and capital discipline.

These are issues in which there seems to be a great deal of misunderstanding — which leads to finger-pointing — between the Biden Administration and the oil industry. Given the circumstances, as I wrote previously I believe the Biden Administration should convene a summit with the heads of the major oil companies. There should be frank dialogue, and the outcome should be clearly communicated to the world.

That article makes some good points but what it does not mention is that placing blame on Biden for high oil prices just facilitates the slow walking of production increases that might help the situation. It is time for the oil companies to own this situation and then do everything in their power to end it. Otherwise it is time to levy some windfall profits taxes on some of their earnings.
 
Our energy model is too dependent on large for profit entities. I'm fine with people making money on energy, but there needs to be a more effective public sector competitor. Energy is a national security issue.

There are plenty of countries in the world that rely on the ever-nimble and decisive government to produce oil. Maybe you could do a compare and contrast between the US and Mexico given they actually have a lot of similar geology. There are formations that go right up to the border. Which side of the border do you think produces more oil from them?
 
That article makes some good points but what it does not mention is that placing blame on Biden for high oil prices just facilitates the slow walking of production increases that might help the situation. It is time for the oil companies to own this situation and then do everything in their power to end it. Otherwise it is time to levy some windfall profits taxes on some of their earnings.

I’m not sure you get how the whole “private enterprise” thing works. Companies are not there to help politicians approval ratings. They are there to make profits for their investors.

The good news is that you or anyone else here can get in on all those profits for yourself. Go get yourself a lease and start drilling!
 
Not. There's difference. I am going to stay and play just so I can piss in your cheerios. (y).
Let me know whe you plan on starting, so far all you've done is mildly amuse me.
 
There are plenty of countries in the world that rely on the ever-nimble and decisive government to produce oil. Maybe you could do a compare and contrast between the US and Mexico given they actually have a lot of similar geology. There are formations that go right up to the border. Which side of the border do you think produces more oil from them?
Reread my post. You'll find the answer.
 
The point is that they are doing NOTHING with many leases and that needs to change. Use it or lose it.

LOL The fact is that is what they are doing. History show that oil prices can come down as fast as they go up. The oil companies themselves have stated that they are not in any rush to increase capacity and will concentrate on profits for shareholders instead.

US oil companies are in no rush to solve Biden's gas price problem​

US oil output is lower than before Covid

Normally, the best cure for high prices is high prices, which incentivize more supply. And yet, even though US oil prices have surged by more than 65% this year, US oil production is about 14% below the levels of the end of 2019, before Covid erupted.
"Stop spending like drunk sailors. That's the message from shareholders," said Pavel Molchanov, an analyst at Raymond James.

That message was heard loud and clear. Despite higher prices, 50 of the largest oil companies have increased their annual budgets by just 1% relative to their initial plans, according to Raymond James. Instead of plowing money into expensive drilling projects, the oil-and-gas industry is focused on returning cash to shareholders.

"It's not the government that is banning them from drilling more. It's pressure from their shareholders," said Molchanov.

https://www.cnn.com/2021/11/10/energy/oil-gas-prices-joe-biden/index.html
Did you read what I wrote? It is because of Biden's "oilers unfriendly" policies. All oil companies are sitting on their hands now. Who will put millions of dollars into something that will be banned very soon?
 
If our oil industry was nationalized we wouldn't be at the mercy of madmen like Vladimir Putin or whomever comes next (during international events, wars, etc). Hell, we could probably pay off the national debt.

But that will never happen so we're gonna always be at the mercy of the CEOs of the old companies.
 
How many thousand?

Did you know the Biden administration reduced them to about 9,000 total, from I think 37,000?
Does it matter how many if they are not being used. The companies buy them up and then hold them to limit the amount of oil on the market and force up prices. Why do and spend all the money to produce more oil at 50 dollars a barrel is you can spend a lot less by just holding the leases and lowering the supply and get 100 dollars a barrel?
 
Reread my post. You'll find the answer.

What makes you believe a national oil company could develop oil and gas efficiently and reliably?

Particularly when one of the political parties has been working hard to shut it down?
 
That article makes some good points but what it does not mention is that placing blame on Biden for high oil prices just facilitates the slow walking of production increases that might help the situation. It is time for the oil companies to own this situation and then do everything in their power to end it. Otherwise it is time to levy some windfall profits taxes on some of their earnings.
That is in fact a reasonably balanced article.

Oddly your interpretation of it is not.

If the problem is a challenge finding investors willing to back oil and gas drilling how does a windfall profits tax help? It does the exact opposite. The availability of profits is exactly what stimulates the willingness to drill.

Only thing I can imagine that would be worse is banning fracking, which many leading Democrats have supported. You don’t get more supply by making it hard on suppliers.
 
Define “too high”. My answer would be that prices reflect the supply and demand of the various products and services involved.

If Democrats hadn’t been impeding supply of various things they would likely be lower. If that’s what you mean by “too high”.
If you want to know what "too high" is, ask the millions of conservatives who are excoriating Biden for the supposedly outrageous cost of gas, and his fault in supposedly causing the spike.
On any given day, there are 2 or 3 threads on the FP on the topic. Ask them.

And you are following the same tack with the undefined manner with which Democrats "impeding supply of various things" and causing gas prices to be higher. Impeding what, and how does "that" drive up gas prices? And how much so?
 

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