9000 unused leases on Federal land.

E

ExpressLane

Verified User
Why would the oil industry not drill on those lands.\? Why wouldn't they not want to suck $120 a barrel out of the ground on those leases. In west Texas if you own a lease in the Permian Basin formation you can obtain permits to drill in about 10 days. In New Mexico in the same Permian Basin formation it takes approximately 10 months to get permits. And permits have had to be resubmit because the wrong gender pronouns ere used. The difference is caused by the fact that the Permian basin in Texas is on private lands and on Federal land in New Mexico. The government is dragging their feet on the permits need to drill on leases on Federal lands. To oil producers time is money. The government is making it very hard to drill on the 9000 undrilled leases.
 
ExpressLane said:
Why would the oil industry not drill on those lands.\? Why wouldn't they not want to suck $120 a barrel out of the ground on those leases. In west Texas if you own a lease in the Permian Basin formation you can obtain permits to drill in about 10 days. In New Mexico in the same Permian Basin formation it takes approximately 10 months to get permits. And permits have had to be resubmit because the wrong gender pronouns ere used. The difference is caused by the fact that the Permian basin in Texas is on private lands and on Federal land in New Mexico. The government is dragging their feet on the permits need to drill on leases on Federal lands. To oil producers time is money. The government is making it very hard to drill on the 9000 undrilled leases.
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Permits to cross and use the leased land takes 2 days in TX and 140 days from the Feds. The oil industry is also hampered getting financing from "woke" banks who are being bullied by the current administration to give special treatment to anything green. Clearly, the push is on for electric being the way the future without any thought to the problems involved in that result becoming a reality. It is a religion that could become the doom of the worlds economy.

Hundreds of products we need every day are produced with the by-products that come from a barrel of oil. Give me a list of by-products that come directly from the sun or wind.
To the tree huggers out there, If you believe the bullshit you are spouting, turn off the LP, or natural gas pipe leading to your furnace and practice what you preach.
 
Yep EVs require lots of products that are made of petroleum products. I have no problems going to EVs but the process should be slow and orderly. It shouldn't be chaotic like our withdrawal from Afghanistan.
 
1646949085176-png.947628
 
Biden policy in action. They want gas prices to be crippling. Nobody on the left even considered all the other products made from petroleum.

Plastics, panty hose, rope, kitchenware, garbage cans, guns, water tanks, milk jugs, water bottles, rakes, porta-potties...etc..
 
Matt Dillon said:
Biden policy in action. They want gas prices to be crippling. Nobody on the left even considered all the other products made from petroleum.

Plastics, panty hose, rope, kitchenware, garbage cans, guns, water tanks, milk jugs, water bottles, rakes, porta-potties...etc..
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Oh God no more Porta Potties? That is going to upset Evince.
 
ExpressLane said:
Why would the oil industry not drill on those lands.\? Why wouldn't they not want to suck $120 a barrel out of the ground on those leases. In west Texas if you own a lease in the Permian Basin formation you can obtain permits to drill in about 10 days. In New Mexico in the same Permian Basin formation it takes approximately 10 months to get permits. And permits have had to be resubmit because the wrong gender pronouns ere used. The difference is caused by the fact that the Permian basin in Texas is on private lands and on Federal land in New Mexico. The government is dragging their feet on the permits need to drill on leases on Federal lands. To oil producers time is money. The government is making it very hard to drill on the 9000 undrilled leases.
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The stupidity of Conservatism:

You want oil prices to be high so that oil companies are successful, but at the same time you demand gas prices are low because you bought an $80K truck that gets 6 MPG's and it costs you $40 to drive to your low-wage, low-skill job.
 
LV426 said:
The stupidity of Conservatism:

You want oil prices to be high so that oil companies are successful, but at the same time you demand gas prices are low because you bought an $80K truck that gets 6 MPG's and it costs you $40 to drive to your low-wage, low-skill job.
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Oil companies can thrive at $50 a barrel oil. The government needs to approve oil companies permits to drill and stop harassing them by slow walking the approval process.
 
ExpressLane said:
Why would the oil industry not drill on those lands.\? Why wouldn't they not want to suck $120 a barrel out of the ground on those leases.
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It is not $120 right now. More importantly, who knows what it will be a few years from now when production would start.

The price went negative two years ago. Investors actually had to pay to get oil off their hand. That created a shock to the system that will not soon be forgotten. It shutdown almost all drilling. Right now, companies are trying to reassure investors by giving better returns, not by reinvesting.

Is Biden to blame? It all happened before Biden took office, so private citizen Biden would have had to have done it for him to be to blame.
 
ExpressLane said:
Oil companies can thrive at $50 a barrel oil.
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Fracking companies burn through cash. They need a lot of investment. They could thrive on $50 a barrel back in the easy money days, but only in America, and similar countries, with easy access to NYC investment.

When oil went negative, that investment money vanished. With the era of easy money in other industries ending, I doubt it will come back for oil.
 
Walt said:
It is not $120 right now. More importantly, who knows what it will be a few years from now when production would start.

The price went negative two years ago. Investors actually had to pay to get oil off their hand. That created a shock to the system that will not soon be forgotten. It shutdown almost all drilling. Right now, companies are trying to reassure investors by giving better returns, not by reinvesting.

Is Biden to blame? It all happened before Biden took office, so private citizen Biden would have had to have done it for him to be to blame.
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Yeah, no. President Biden declared war on oil production on his 1st day in office.

https://www.cnn.com/interactive/2021/politics/biden-executive-orders/index.html
 
Walt said:
It is not $120 right now. More importantly, who knows what it will be a few years from now when production would start.

The price went negative two years ago. Investors actually had to pay to get oil off their hand. That created a shock to the system that will not soon be forgotten. It shutdown almost all drilling. Right now, companies are trying to reassure investors by giving better returns, not by reinvesting.

Is Biden to blame? It all happened before Biden took office, so private citizen Biden would have had to have done it for him to be to blame.
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Biden stopped leasing on Federal lands where the leases contain more oil and he has made the permit process more drawn out. That difficulty has made it more difficult to secure financing for drilling.
 
ExpressLane said:
Biden stopped leasing on Federal lands
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That actually makes sense. Bids stopped being made for leases, so why have auctions? Even you admit that the current leases are being ignored for a lack of investment.

ExpressLane said:
That difficulty has made it more difficult to secure financing for drilling.
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Oil companies have not been able to reinvest for almost two years now. If they do not present dividends, they collapse.
 
Walt said:
Investment in oil drilling collapsed almost a year before Biden took office, so your claims about the first day in office are unimportant.
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Oh? Then why was the US gas price record broken yesterday, hmm?

Also: Oil makes the world go 'round, gasoline excluded.
 
ExpressLane said:
Oil companies can thrive at $50 a barrel oil.
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So now you want to impose price controls?

Oil companies cannot thrive at $50 a barrel and we know that because 42 of them went bankrupt in 2015 and 58 went bankrupt in 2016 when the price per barrel dropped from $96/barrel in 2014 to $52/barrel in 2015, to $46/barrel in 2016.


The government needs to approve oil companies permits to drill and stop harassing them by slow walking the approval process.
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Oil companies already have millions of acres of land...they aren't drilling more because drilling more further drives down the price per barrel and makes it unprofitable.
 
Walt said:
That actually makes sense. Bids stopped being made for leases, so why have auctions? Even you admit that the current leases are being ignored for a lack of investment.
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Slowing down investment that the Biden administration's war on fossil fuel has done is resulting in a slowing of production. If you are unsure of if or ho long it will take to get a permit to drill its hard to get investors. I don't know if you have ever invested in an oil well or not but private producers sell shares in a well.. Its hard to sell them if you aren't sure it will ever get drilled.





Oil companies have not been able to reinvest for almost two years now. If they do not present dividends, they collapse.
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Yes COVID hurt the oil business. Demand dropped drastically.
 
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