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American Petroleum Institute: Biden ‘Misusing Facts’ When Talking About Unused Drilling Permits

American Petroleum Institute: Biden ‘Misusing Facts’ When Talking About Unused Drilling Permits

“Just because you have a lease doesn’t mean there’s actually oil and gas in that lease…”

Biden and his lackeys keep spouting the same narrative when it comes to high gas prices: There are 9,000 federal drilling permits companies can use to bolster oil production!

Biden repeated this line in his speech about banning Russian energy sources, including oil. We’ve seen gas prices go up before Russia invaded Ukraine, but it’s only going to get worse.

According to Biden, it’s Putin’s fault. It’s the gas stations’ fault because they’re price-gouging. It’s the oil companies because they’re not taking advantage of the drilling permits.

It obviously has nothing to do with inflation, right?

Mike Sommers, CEO of the American Petroleum Institute, confirmed the industry continues to use “a higher percentage of federal onshore and offshore leases than at any time in the past, and it’s continuing to increase production to meet surging demand.”

But Biden leaves out necessary information because it voids his argument:

“There’s a fundamental misunderstanding of the administration as to how the process actually works,” Sommers said in an interview on the sidelines of the conference.

“Just because you have a lease doesn’t mean there’s actually oil and gas in that lease, and there has to be a lot of development that occurs between the leasing and then ultimately permitting for that acreage to be productive,” he said. “I think that they’re purposefully misusing the facts here to advantage their position.”

The majority of our foreign oil comes from Canada. It’d be more if Biden opens the Keystone XL pipeline. Mexico and Saudia Arabia come next. Russia makes up about 8% of what we got last year:

About 8% of U.S. imports of oil and refined products, or about 672,000 barrels a day, came from Russia last year, said Andy Lipow, president of Lipow Oil Associates LLC in Houston, citing figures from the Energy Information Administration. Of that, Russia’s crude made up roughly 3% of the nation’s imports, about 200,000 barrels a day.

In mid-2021, U.S. imports of Russian crude hit the highest levels in about a decade, and had been trending higher in recent years, EIA data show. But Russian crude has never made up a large part of the U.S. oil supply system, Mr. Lipow said.

It’s obviously a concern despite the small amount because the Biden administration is talking to Saudi Arabia, Venezuela, and Iran about buying oil. The UN even asked about opening Libyan oil fields.

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Comments

This is the first President in my memory that deliberately creates economic pain for the American people. One can argue about the motivation, but my money would be on the government desire to force Americans to accept greater centralized control of the economy.

    Aarradin in reply to kelly_3406. | March 9, 2022 at 2:47 am

    Obama was actually far worse when it came to deliberately inflicting economic pain to drive up energy prices.

    One of O’s first acts was to retroactively cancel thousands of leases in the lower 48, many of which were already in production. He effectively terminated any hope of any new production either on-shore or off-shore in Alaska. He then used the Deepwater Horizon disaster to shut down virtually all production in the Gulf of Mexico.

    By far the most destructive thing Obama did to our economy was to designate over 1.65 MILLION acres of land as “national monuments” for the express purpose of preventing the development of those lands – virtually all to prevent energy sector development.

    Prior to being elected, Obama openly spoke about the “need” to drive up energy prices in the US. The purpose being to make “green” energy more appealing by making fossil fuels even more expensive than wind/solar.

    This is, in fact, mainstream policy on the Left and has been for decades now.

    amwick in reply to kelly_3406. | March 9, 2022 at 7:28 am

    It isn’t him.. He can’t do anything on his own… That is terrifying in itself. He is an avi, nothing more.

henrybowman | March 8, 2022 at 7:42 pm

“According to Biden, it’s Putin’s fault. It’s the gas stations’ fault because they’re price-gouging. It’s the oil companies because they’re not taking advantage of the drilling permits. It obviously has nothing to do with inflation, right?”

My 401K is sucking harder than a black hole. I need to ask my broker if he owns any drilling permits he’s failing to exploit.

    MattMusson in reply to henrybowman. | March 9, 2022 at 8:54 am

    Biden’s War on Energy had driven US and Canadian oil production down by nearly 3 million barrels a day. Is that Putin’s fault?

“Misusing facts”. Uh huh. Back in my day, we called it “lying”.

Note to Brandon and his gang of Marxist morons —

The richest guy in the world, who got that way making electric cars, says we need to increase oil and gas production as fast as possible. And maximize nuclear power plant production, too.

    Musk should know. Last year he also pointed out that we are years away from being able to produce enough electricity to make the switch from fossil-fueled cars to EVs. Solar and wind will never be sufficient.

    If only switching to EVs was that easy. Petroleum is not only a fuel but also is also essential for agriculture, plastics, pharmaceuticals, national defense, space travel,… In fact, just about everything. Everything Biden and his co-liars said today was a big lie.

    The EU also declared that they will be cutting imports of Russian oil and gas and in contrast to Biden, will present their plan for replacing the Russian imports. Russia will be fine since China declared that they will buy the oil/gas that the EU and US are turning away. Will they get it at a discount and then sell it back to the EU and US through intermediaries marked up steep?

    I put nothing past Biden. He believes that Venezuela’s oil will fill the void. Their oil is goop. They are required to import light crude to blend into the goop so it can be thin enough to be transported. It’s essentially only good for heating oil and lubrication.

    The dumbest guy in the world, if he or she possessed a shred of common sense, would say the same.

    Aarradin in reply to JHogan. | March 9, 2022 at 2:51 am

    To be fair, Musk became the richest guy in the world by simply creating a car company with a fleet of 100% “renewable” energy vehicles. This made him the recipient of over $500 Million per year in carbon payments. The federal government forces other car companies to pay, and given the structure of his company Musk became the principal recipient.

    He didn’t actually have to sell any cars.

    He is the worlds leading “crony socialist”.

      Jester Naybor in reply to Aarradin. | March 9, 2022 at 6:53 am

      $500M a year is a minor contribution to Musk’s net worth, even with interest. And you can’t blame him for taking what they are offering every other car company, any more than you can be blamed for taking every tax deduction you can.

      At least he is more honest about what he is doing, and the world around him … and delivers more in terms of a product, than the rest of them – to the point that these days Teslas sell as much on performance and the “cool” tech factor, as they do as a Climate Change Cult virtue signal.

What? Did anyone honestly expect the pedophile-in-chief to do anything other than outright lying?

There are oil industry terms of art.

kelly3406 said.

“This is the first President in my memory that deliberately creates economic pain for the American people. ”

No. Not the first. I remember Obama. He’d claim we couldn’t drill our way out because we only had x percent of the world’s proven oil reserves.

Proven oil reserves. Not oil in the ground. Proven oil reserves means oil in the ground available under current economic conditions using current technology and under current legal conditions. As opposed to oil in the ground, which just means you know it’s there.

Proven oil reserves does not mean oil you know how to get to, but the feds have placed off limits. Which is the game a$$maggots like Obama and Biden like to play. We have so much accessible oil and gas. So does Europe. Which is why Putin and the Arab oil cartels fund the greenies to keep us dependent on foreign sources.

I may be wrong. It’s why I gave the reference. You want to know how bad it got when I was in the Navy? The staff JAG would defer to me to interpret contracts.

“Yeah, we have the right to the dry dock in Sasebo.. They have to put off the commercial work. Says so right here.”

The dry dock in Sasebo being they only shipyard in Asis we could do the work.

https://shipyards.gr/ship-repairs/far-east-pacific-ocean/Shiprepairs-FarEast-Pacific/japan/sasebo-heavy-industries-co-ltd-japan

I really need to learn how to weld.

I got the work done at something like three times the speed. Because, you, Army needed the work done. I couldn’t have cared less.

If there’s no oil or gas in those leases, surrender them. They only cost money to hold on to, and someone else might want them. Or are those someone elses who might think there is oil or gas there the real reason they are being held?

I’m becoming mildly peeved by the lies from both sides.

    Jester Naybor in reply to gnome. | March 9, 2022 at 6:48 am

    As Arminius said:

    Proven oil reserves means oil in the ground available under current economic conditions using current technology and under current legal conditions. As opposed to oil in the ground, which just means you know it’s there.

    Holding onto the leases may make sense, if one anticipates the economics, technology and/or legal conditions will eventually change and make production from them viable.

    The Pseudodent OTOH obstructs more leasing, creates the legal conditions that diminish the viability of production from existing leases, and then he and his Baghdad Bob-cut parse words to spin a narrative that it’s all the fault of the “greedy” oil companies as they beg OPEC for more oil. All because they don’t want to offend their Watermelon donors and the Squaddies.

    Those stickers are right: he did this.

    https://uploads.disquscdn.com/images/f9a653b2240cb4ee502e26df83d373af05489ae1d9d0d4aea99a664e605140a6.png

    TrickyRicky in reply to gnome. | March 9, 2022 at 9:34 am

    One doesn’t know if there are commercially viable amounts of oil/gas in a lease until you drill one or more wells. The average price of WTI in 2019 was $57/bbl. If a company expected the cost to recover the resource in their lease to be $60/bbl, they would wait for prices to come up before committing capital to that project. As to letting someone else exploit the lease, why would they give up a lease after securing it, if there is any chance that it would be of value later in the primary term of said lease?

The American economy on “Green”, they are not done making you see how painful it can be.

Jester Naybor | March 9, 2022 at 7:01 am

The Pseudodent obstructs more leasing, creates the legal conditions that diminish the viability of production from existing leases, and then he and his Baghdad Bob-cut parse words to spin a narrative that it’s all the fault of the “greedy” oil companies as they beg OPEC for more oil. All because they don’t want to offend their Watermelon donors and the Squaddies.

And because reversing his EO gifts to them will undercut the entire Climate Change Cut belief system, and make it harder to ever re-impose the tenets of that faith as policy,

Those stickers are right: he did this.

https://uploads.disquscdn.com/images/2b00679260560c9ff2fb1ace84914952b26a2ea61e9d3083303b8fe1412e34ec.png

Biden can also write as many leases as he wants now, after such reckless moves no one can trust him on energy. He brought too much uncertainty.

If we were properly focused on energy security, greenhouse gas emissions would be a moot point.

Whenever people start talking about OPEC, like to point out this Paul Krugman paper from 2001, http://web.mit.edu/krugman/www/opec.html. When people say that the US cannot affect the price of oil, I like to point out several things: 1.) That’s a good thing because every bit we produce goes to our GDP. 2.) That’s a good thing because every bit we don’t import adds to our GDP. 3.) That’s a good thing because every bit we don’t import reduces our trade deficit. 4.) That’s a good thing because it means lots of tax revenue (see and 2). 5.) Don’t be so sure about that, a little competition could spur production in lots of other places. Many producers produce inefficiently (and messily) because they believe price rises will keep them wealthy. E.g. Venezuela, Russia in the 1990s… They don’t keep their equipment maintained and they waste/spill a lot. US hoarding sends a signal to oil producing nations with two implications: 1). Alternative Energy is nowhere near ready, otherwise the US would be extracting its oil before prices fall; the US likely doesn’t expect alternatives to ever be better than fossil fuels (I’d like to get into this, but I’ll save it for another time). 2). Current producers can make money by keeping production low. If the US told the world it believes alternative energy R&D would pay off within the next 50 it would mean nothing, unless they back it up with extraction for the medium term. I believe that if the US said that there was no future in oil, and backed it up by pumping full- tilt to take advantage of the current high prices, we’d see both alternative research take off as well as exploration, extraction, and productivity throughout the world. Reagan wasn’t the Great Communicator because of how he talked. Actions speak far louder than words.

The status quo is far more dangerous than Trump ever was.

The Northern Hemisphere climate was much more extreme in previous centuries. The past 150 years have been unusually kind. We are not prepared for reversion to the mean. #AntiFragileEnergy #GreenNuclearDeal #HighlyFlexibleNaturalGas #IncineratePlasticPollution #WasteToEnergy

2smartforlibs | March 9, 2022 at 9:33 am

He flat-out lied. He killed keystone he sign Ex od to end permitting on and offshore. Not every place that has been permitted is an oil field so his fun with facts is past annoying.

In my view, we are at a critical geopolitical moment in history. The vital discussion must move beyond the domain of cable and print media into negotiating peace and ending military conflict if there is any hope of constructively de-escalating the Russian-Ukrainian crisis. This crisis is real, but the politicians are not working in the people’s best interests.

What happens if de-escalation and peace with objectivity are not pursued?

I suspect the Biden Administration is taking advantage of this crisis. Joe Biden and Hunter are accomplices, and the situation is serving to cover up Biden’s crimes, those of his son Hunter, the coronavirus pandemic, the Durham investigation, and the 2020 electoral fraud.

The United States has started an insane war with Russia with the intentions of bolstering Biden’s approval ratings and improving the DNC’s mid-term elections outlook.

A typical EV battery requires 8 kg of lithium, 35 kg of nickel, 20 kg of manganese and 14 kg of cobalt. Electric motors in EVs utilize kilograms of magnetic rare-earth materials like neodymium and dysprosium, which are expensive, produce lots of waste and have various mining concerns.

Put these pro-EV politicians on record saying they support the mining operations in the US required to make these EVs domestically or by child labor in the 3rd World.

    Arminius in reply to Neo. | March 9, 2022 at 11:05 pm

    You are so on point. We have the minerals and rare earths here in the U,S. But then we also have the fossil fuels. We could drill our way to prosperity. But the lefties have sold us out to the reds. And by reds, I mean greens.

    What do you think the odds of the people who won’t let us tap into our oil deposits will let us mine our mineral deposits? I’m honestly curious. Did we all sign up to be this stupid? I don’t remember the year, let alone the day or hour, when I agreed to leaving all our natural resources in the ground.

    Let’s just have China hold us hostage. Yeah. That’s the ticket.

It’d be more if Biden opens the Keystone XL pipeline.

Even if he did, so what? Construction was halted and the workforce dispersed. Any intelligent person would be hesitant to restart construction, because Biden or his successor might change his mind again and halt it. Assuming that doesn’t happen, it would still likely be 2-3 years before Keystone XL is transporting oil.

Holding unproven leases is a minor expense. Drilling to prove or produce not so much. When fields demonstrate a volume of proven reserves that asset goes straight to the bottom line until produced. That effect may produce immediate tax consequences. At least until the expense of production and depletion are accounted.

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