Biden calls for ‘use it or lose it’ policy for oil leases on federal land

[diz]

Oil production grew at record levels during Obama's terms. So much for Democrats "hampering". A vote for any Republican this year is a vote for Trump to return to D.C. That much is quite clear. Surely you don't want him again, he's a traitor and a crook. He will lose again too.

Here’s a little tip for you:

Most of the regulation that affects oil and gas production is at the state level.

That curve goes up for reasons that have literally nothing to do with Obama. It went up despite his generally anti oil and gas policies. Unless you would like to enlighten us on which of his policies encouraged all that oil and gas development?

Try comparing California oil production versus Texas over the last few decades.

Let me know what you think. Did oil increase more in a state run by Republicans or Democrats?

California Vs. Texas: Oil And Natural Gas — Comparing The Two States 1 In 5 Americans Call Home

Continuing a series of California and Texas comparisons, this piece examines the two most-populous states’ oil and natural gas policies and outcomes. Policy matters. Even if a nation or state is endowed with significant natural resources, history shows that tax rates, regulatory burdens and rule...

www.texaspolicy.com

 

[366h34d]

No, I don’t think it’s that simple.

You don’t think that petroleum companies aren’t already investing resources on EOR studies?

Enhanced Oil Recovery

www.energy.gov

It would seem to be a no brainer that big oil companies wouldn’t want to leave a large percentage of oil in the ground if there’s an economical way retrieve much more.

Ya, I know., but there are many factors (Environmental stuff, cost .... ) to it. It sounds interesting. Maybe someone in the field can ans it. I only did the wells data digitalization and visualization

 

[Patriotic Voter]

What a dummy Biden is. He has no clue how that stuff actually works. You get a lease to explore for oil. That's the point of the lease. Which if you find it then you get the permits to drill pump and transport it.

So you don't know how smart President Biden is. Dummies don't even know what what crude oil, land permits, and drilling pumps are. President Biden knows all of that information.

 

[iguanaman]

Here’s a little tip for you:

Most of the regulation that affects oil and gas production is at the state level.

That curve goes up for reasons that have literally nothing to do with Obama. It went up despite his generally anti oil and gas policies. Unless you would like to enlighten us on which of his policies encouraged all that oil and gas development?

Try comparing California oil production versus Texas over the last few decades.

Let me know what you think. Did oil increase more in a state run by Republicans or Democrats?

California Vs. Texas: Oil And Natural Gas — Comparing The Two States 1 In 5 Americans Call Home

Continuing a series of California and Texas comparisons, this piece examines the two most-populous states’ oil and natural gas policies and outcomes. Policy matters. Even if a nation or state is endowed with significant natural resources, history shows that tax rates, regulatory burdens and rule...

www.texaspolicy.com

Yes let's change the subject since I made a fool out of you. Whatever Obama did or didn't do no President has presided over such a massive increase in oil production for 100 years. Stop drinking that kool-aid, it will make you sick. Democrats are always better for the economy and higher GDP growth is the proof as is stock market growth.

 

[Razoo]

Did he ban something on the Fed land when he moved into WH? Also, his admin added a few taxes and duties to oil companies a couple of days ago. I guess he forgets all about it

Supply Side Wreckanomics is one huge 24/7 tax increase. Interest rates on BIG bank loans = tax increase

Supply Side Wreckanomics is dependent on borrowed money = never pays for itself.

 

[PirateMk1]

So you don't know how smart President Biden is. Dummies don't even know what what crude oil, land permits, and drilling pumps are. President Biden knows all of that information.

I doubt the man knows where and who he is most of the time.

 

[Patriotic Voter]

I doubt the man knows where and who he is most of the time.

You know the opposite is true or don't even know who he is.

Eve4ry single person who ever said this stupid crap about Joe Biden worships the man who really has severe psychological disabilities . . . TRUMP THE TERRORIST.

 

[Airyaman]

We're stuck with fossil fuels until we can build more reactors.

No way dude. Didn't you see The 100? That's how the earth was destroyed the 2nd time!

 

[element94]

Do you really think a trickle of oil from the daily usage will matter much?

Not my point.
How on earth would Biden start WWIII? If anyone, Russia has already beat him to it. Have you seen the civilian bodies in the streets of Bucha? Many killed execution style, and bodies run over by tanks. The war criminals have to be stopped don't you think? The Russians are getting beat and the war crimes will get worse.

 

[RaleBulgarian]

This quote below is not mine, why is it attributed to me? Post 86.

Cut/paste error. Apologies.

 

[Perotista]

Outstanding, oil companies will need to either start using the unused federal leases, or pay a fine and lose their rights to the land. That in addition to the new daily releases of crude out of the federal reserves should have start reducing oil company profits and be seen as a reduction at the pumps.

Biden calls for ‘use it or lose it’ policy for oil leases on federal land

US President Joe Biden on Thursday slammed oil companies for refusing to increase production to make up shortfalls caused by the removal of Russian oil from US markets.

www.independent.co.uk

The leases are basically for exploration for oil and gas on federal land, then going through a myriad of regulations and permits to drill. The federal government also gets royalties from the oil and gas produced. The thing is that you can’t drill if you haven’t found oil on the federal land, losing the lease would probably save the oil companies money. Also, many of leases haven’t entered the drilling portion. All of this takes times. But once oil is found, there are permits and regulations that first have to be issued and met. This all sounds like a political ploy, rhetoric to get people think Biden is doing something about rising gas prices. There is a reason the leases are for 10-year periods, explore and find must be done first. Then permission to drill received and meeting all federal regulations and obtaining permits. There’s nothing fast about this whole think. Just political rhetoric. Here:

“The leases issued by BLM have a “primary term” of ten years. This is the period of time during which the lessee may explore for oil and gas deposits and attempt to bring them into production. If the lessee has begun drilling by the end of the ten-year term, the lease term may be extended by two years. If the lessee has begun to produce oil or gas “in paying quantities” by the end of the primary or extended term, then the lease is extended so long as the lessee continues to produce oil or gas.

During the period of the lease, the lessee must pay either rental on the land, or royalties on the oil and gas produced.

Actual drilling for oil and gas under a federal lease is also regulated by BLM. BLM must approve a plan of operations for any surface disturbing activities and issue a permit to drill each well. The MLA also requires that BLM mandate a bond or other financial assurance before drilling starts, to assure that the lease tract will be restored when operations cease. The bond must cover reclamation of all affected lands and waters.”

The Federal Oil and Gas Leasing Process - Taxpayers for Common Sense

[…]

www.taxpayer.net

 

[CaughtInThe]

They've indoctrinated you quite well!

that's just too funny. i list a bunch of government programs that did/do work and I'M the one who is indoctrinated (as you say they NEVER work).

 

[diz]

Yes let's change the subject since I made a fool out of you. Whatever Obama did or didn't do no President has presided over such a massive increase in oil production for 100 years. Stop drinking that kool-aid, it will make you sick. Democrats are always better for the economy and higher GDP growth is the proof as is stock market growth.

Hahaha. I admire the way you try so hard to remain in ignorance.

I come into a thread dealing with a topic I have made my living off my entire career and get told by random people on the internet how little I know about it.

What do you suppose the odds of you actually saying more intelligent things than I am about oil and gas economics are?

Are you going to school some nuclear physicists on how they’ve got nuclear physics wrong next?

Maybe there are some brain surgeons you can educate on brain surgery. The world awaits your expertise!

 

[diz]

Ya, I know., but there are many factors (Environmental stuff, cost .... ) to it. It sounds interesting. Maybe someone in the field can ans it. I only did the wells data digitalization and visualization

What is the question? There are certainly people in the energy industry investing in EOR. That’s a pretty broad term, even. The infrastructure cost is higher and the performance of most EOR projects is more unpredictable than potential new drilling so it tends to be more viewed as a niche specialty that requires higher commodity prices to be viable.

Generally, if money can be made doing it people will try to do it. Except recently this trend has been bucked a little by the rise of “ESG investing”. Investment in fossil fuels is far lower than it would be if it weren’t for Democrats/Activists attempting to shut it down.

There are 600+ oil directed rigs running now, for example. If the relationship between oil price and rig count was more like it had been historically I’ve seen estimates that number would be 1200-1700. But that number of rigs takes more capital to outfit, crew and maintain than are currently available or companies are willing to spend given the climate of uncertainty.

 

[Buckeyes85]

I doubt the man knows where and who he is most of the time.

Yet that man who doesn't know where he is clown whipped your "genius" with the great big brain. After that "genius" did the best job as president since Lincoln, maybe even better.
And the clown whipping required the votes of millions of Americans who align themselves with neither party. That has got to really smart. To lose that badly to someone that stupid/demented. Ouch.

 

[diz]

Jeez, that’s some kinda rare level of delusion there.

On this topic, the main thing Biden has in his favor is no one takes him seriously.

If people actually thought there was some chance of a punitive windfall profits tax the drilling would be slowing down already. Most industry people assume not even enough Democrats are that stupid.

 

[iguanaman]

Jeez, that’s some kinda rare level of delusion there.

On this topic, the main thing Biden has in his favor is no one takes him seriously.

If people actually thought there was some chance of a punitive windfall profits tax the drilling would be slowing down already. Most industry people assume not even enough Democrats are that stupid.

Again you prove you don't even understand what a windfall profits tax is.

 

[iguanaman]

The leases are basically for exploration for oil and gas on federal land, then going through a myriad of regulations and permits to drill. The federal government also gets royalties from the oil and gas produced. The thing is that you can’t drill if you haven’t found oil on the federal land, losing the lease would probably save the oil companies money. Also, many of leases haven’t entered the drilling portion. All of this takes times. But once oil is found, there are permits and regulations that first have to be issued and met. This all sounds like a political ploy, rhetoric to get people think Biden is doing something about rising gas prices. There is a reason the leases are for 10-year periods, explore and find must be done first. Then permission to drill received and meeting all federal regulations and obtaining permits. There’s nothing fast about this whole think. Just political rhetoric. Here:

“The leases issued by BLM have a “primary term” of ten years. This is the period of time during which the lessee may explore for oil and gas deposits and attempt to bring them into production. If the lessee has begun drilling by the end of the ten-year term, the lease term may be extended by two years. If the lessee has begun to produce oil or gas “in paying quantities” by the end of the primary or extended term, then the lease is extended so long as the lessee continues to produce oil or gas.

During the period of the lease, the lessee must pay either rental on the land, or royalties on the oil and gas produced.

Actual drilling for oil and gas under a federal lease is also regulated by BLM. BLM must approve a plan of operations for any surface disturbing activities and issue a permit to drill each well. The MLA also requires that BLM mandate a bond or other financial assurance before drilling starts, to assure that the lease tract will be restored when operations cease. The bond must cover reclamation of all affected lands and waters.”

The Federal Oil and Gas Leasing Process - Taxpayers for Common Sense

[…]

www.taxpayer.net

So you are defending the oil companies decision spend less on drilling and raise their bottom line to please investors? That is what they told us they were doing.

“The oil and gas industry has millions of acres leased … they could be drilling right now, yesterday, last week, last year,” Biden said last week. “They are not using them for production now. That’s their decision.”
For its part, industry has not leapt to expand drilling.
The major public oil and gas companies that drive much of the United States’ activity are holding themselves back with uncharacteristically miserly capital expense plans, returning cash to investors instead of drilling new wells. Officials with some companies say they are also facing bottlenecks for equipment, rigs and labor.

https://www.politico.com/news/2022/03/15/drilling-permits-spiked-then-plunged-under-biden-00016814

 

[Perotista]

So you are defending the oil companies decision spend less on drilling and raise their bottom line to please investors? That is what they told us they were doing.

“The oil and gas industry has millions of acres leased … they could be drilling right now, yesterday, last week, last year,” Biden said last week. “They are not using them for production now. That’s their decision.”
For its part, industry has not leapt to expand drilling.
The major public oil and gas companies that drive much of the United States’ activity are holding themselves back with uncharacteristically miserly capital expense plans, returning cash to investors instead of drilling new wells. Officials with some companies say they are also facing bottlenecks for equipment, rigs and labor.

https://www.politico.com/news/2022/03/15/drilling-permits-spiked-then-plunged-under-biden-00016814

I'm not defending anything or anyone. Just pointing out the facts. If that gets your goat, so be it.

 

[iguanaman]

I'm not defending anything or anyone. Just pointing out the facts. If that gets your goat, so be it.

That is what I was doing also. The fact is that the Federal govt. cannot control how much oil that companies decide to produce and the excuse that they are is bogus. Big oil made a joint decision to reduce drilling expenses and please their stockholders instead. That "joint decision" alone is grounds for a monopoly lawsuit. We broke them up once and it may be time to do it again. They have far too much power for private corporations.

 

[diz]

Again you prove you don't even understand what a windfall profits tax is.

Tell me what you think it is. Then I’ll tell you what an oil company will do when you enact it.

 

[Perotista]

That is what I was doing also. The fact is that the Federal govt. cannot control how much oil that companies decide to produce and the excuse that they are is bogus. Big oil made a joint decision to reduce drilling expenses and please their stockholders instead. That "joint decision" alone is grounds for a monopoly lawsuit. We broke them up once and it may be time to do it again. They have far too much power for private corporations.

The goal of any business, from a mom and pop store to multi-million and billion-dollar corporations is to make money. I don’t know if breaking up big oil would help or not. I’m no financial guru. I realize when buying oil from overseas is cheaper than the cost of drilling and producing oil here in the good old USA, the oil companies buy from overseas. When overseas oil become more expensive, they drill and produce more oil here. It’s all money driven. Would more government control and regulations help, I don’t know?

What I do know is that U.S. oil refineries are operating at 92% capacity. Even with an oil glut, the ability to refine oil and produce gas is limited. It might not be the amount of oil available, but the ability to refine it. Again, this was something that popped into my mind as I was told a while back that no new refineries had been built in over 20 years. True or not, again I don’t know. But how much more gas can be produced by raising refining up from 92% to 100%. Probably not that much.

https://ycharts.com/indicators/us_o...#:~:text=Basic Info,week and 81.60% last year.

I’m sure the price of a barrel of oil dictates how much we pay for a gallon of gas at the pump. But so does supply and demand. I’m just throwing this out there, mainly because I’m not sure if we have an oil shortage or the refined product, a gas shortage or if it is just the price of a barrel of oil. Will more drilling bring down the cost or the release from the oil reserves? The thing is all this oil needs to be refined into gas.

What I think is we’re at the mercy of the global oil market. That what we do here will have little effect.

 

[iguanaman]

The goal of any business, from a mom and pop store to multi-million and billion-dollar corporations is to make money. I don’t know if breaking up big oil would help or not. I’m no financial guru. I realize when buying oil from overseas is cheaper than the cost of drilling and producing oil here in the good old USA, the oil companies buy from overseas. When overseas oil become more expensive, they drill and produce more oil here. It’s all money driven. Would more government control and regulations help, I don’t know?

What I do know is that U.S. oil refineries are operating at 92% capacity. Even with an oil glut, the ability to refine oil and produce gas is limited. It might not be the amount of oil available, but the ability to refine it. Again, this was something that popped into my mind as I was told a while back that no new refineries had been built in over 20 years. True or not, again I don’t know. But how much more gas can be produced by raising refining up from 92% to 100%. Probably not that much.

https://ycharts.com/indicators/us_operable_crude_oil_distillation_capacity#:~:text=Basic Info,week and 81.60% last year.

I’m sure the price of a barrel of oil dictates how much we pay for a gallon of gas at the pump. But so does supply and demand. I’m just throwing this out there, mainly because I’m not sure if we have an oil shortage or the refined product, a gas shortage or if it is just the price of a barrel of oil. Will more drilling bring down the cost or the release from the oil reserves? The thing is all this oil needs to be refined into gas.

What I think is we’re at the mercy of the global oil market. That what we do here will have little effect.

That is probably true but that does not stop some from claiming otherwise and that Biden is to blame. He has to do something to show he cares. I fear that the right is giving cover to the oil companies current push to raise it's profit margins at a time that makes them seem like war profiteers. What we really need to do is wean ourselves off of oil as fast as humanly possible.

 

[diz]

That is probably true but that does not stop some from claiming otherwise and that Biden is to blame. He has to do something to show he cares. I fear that the right is giving cover to the oil companies current push to raise it's profit margins at a time that makes them seem like war profiteers. What we really need to do is wean ourselves off of oil as fast as humanly possible.

Most oil companies do not view themselves as have any pricing power at all. They individually produce a tiny tiny share of the world market. They make their money by selling oil at whatever the price is.

If price goes up because Biden and the Democrats are hostile to supply, of course they’re going to take the higher price. It’s not like anyone is there to help them when price goes down.

 

[iguanaman]

Most oil companies do not view themselves as have any pricing power at all. They individually produce a tiny tiny share of the world market. They make their money by selling oil at whatever the price is.

If price goes up because Biden and the Democrats are hostile to supply, of course they’re going to take the higher price. It’s not like anyone is there to help them when price goes down.

Now I have heard it all. Oil companies are not victims because they lose money some years. They more than make up for it in good years. They get to sell "free" energy from the earth that they did not make.