Actually, investment fell off a cliff with trump, and has been gradually increasing with Biden, so your entire theory falls apart.
9000 unused leases on Federal land.
- Thread starter ExpressLane
- Start date
Actually, investment fell off a cliff with trump, and has been gradually increasing with Biden, so your entire theory falls apart.
ExpressLane
Verified User
Yes it did temporarily because of COVID but the rig count went back up and is now back down because of Biden's rules.
SmarterthanYou
rebel
how does someone with a low wage, low skill job afford an 80k truck?? oh, right. because you're a fucking partisan moron. my bad.
Leases are used to avoid taxes. They are writeoffs.
T. A. Gardner
Serial Thread Killer
It's not that simple. The BLM says permits take an average of 120 days. But, if you toss in the environmental and other Biden required studies, along with a reimposed $51 a ton for carbon social carbon tax that has caused a stop to new permits until the legalities of that are resolved, the cost and time of a permit under the Biden administration has risen to about 6 to 9 months minimum.
Then there's a current shortage of drilling equipment and crews that will delay drilling more because once you get a permit, it takes time to line up a drilling rig and crew.
The "9000 leases" thing the administration is using is nothing but a canard to try to shake off the anger the public is tossing their way for being totally incompetent dumb fucks.
...or what it takes to ship ANY product around.
No. Biden and Democrats want oil prices to be high. Inversion fallacy.
How does a low wage low skill employee afford an $80 truck????!?
The same way someone with no income and no job was able to get a subprime home loan from 2004-2007.
No. the oil companies have 9,000 approved but unused drilling PERMITS. They have 12 million leased acres that haven't been drilled.
https://westernpriorities.org/2022/...-and-drilling-under-the-biden-administration/
Your entire screed is based on a lie. The government is not dragging their feet since they have issued over 9,000 permits for drilling that have not resulted in drilling because the companies with the permits haven't drilled as permitted.
How long does it take to drill once a permit is approved? The oil companies have 9,000 approved permits that they have not used to drill. They have over 12 million acres leased with nothing happening.
ExpressLane
Verified User
No dumb ass you have to buy a lease and then get a PERMIT to drill then you need a PERMIT to build a pipeline to transfer the oil or gas to a point of central collection or to get it to shore. In Permian Basin in Texas it takes less than 10 days get a permit to drill and build a pipeline in New Mexico it takes more than 10 months to obtain a permit to drill and longer to get a PERMIT to build a pipeline to transfer your oil if you find it.. The difference you ask? In Texas the Permian Basin formation is on private land and in New Mexico the Permian Basin formation is on Federal land. No one wants to finance a project if they are unsure if or when they can get any oil to market.
Try not to speak when you have no idea what you are talking about. It just makes you look stupid.
https://www.bloomberg.com/news/arti...ration-misusing-facts-on-oil-permits-api-says
Last edited:
Yakuda
Verified User
Maybe they will make tires out of vegetables.
And they have over 9,000 PERMITS for land that was already leased. It seems you don't know what a permit is.
As of Dec 31, 2021 there were 9,173 approved permits to drill.
8,658 were on Federal lands
515 on Indian lands.
https://www.blm.gov/sites/blm.gov/files/docs/2022-02/FY 2022 APD Status Report December.pdf
From Oct 1- Dec 31, the Biden administration processed 710 of 842 applications and approved 682 of those. So they are approving 96% of processed applications for permits to drill.
In New Mexico there are currently 4,509 approved permits to drill that have not yet been used.
T. A. Gardner
Serial Thread Killer
How long does it take to drill once a permit is approved? The oil companies have 9,000 approved permits that they have not used to drill. They have over 12 million acres leased with nothing happening.
A big part of the problem is there is a shortage of oil drilling rigs, and scheduling one takes time. Biden fucked this away for the US industry through his policies making it clear he didn't want new drilling. So, the energy companies went elsewhere to drill. That means the drilling rigs went elsewhere too. Until they're done wherever they are, they aren't coming back to the US until they're on the schedule to do so.
https://economictimes.indiatimes.co...gs-spikes-oilcos-hunt/articleshow/1996426.cms
https://www.thenationalnews.com/bus...f local rig builders are swelling with demand.
https://www.bicmagazine.com/industr...-oil-and-gas-rigs-for-ninth-time-in-10-weeks/
So, just because you have permits doesn't equate to instantly being able to drill. Also, a federal policy that discourages drilling for months, then drilling months later sends the whole industry into chaos and uncertainty. That's Joke's fault and it's because the shithead is listening to the retarded idiots on the radical Left who think--I use that term loosely--that sunshine and whirligigs can power the world when it's fully apparent now that's total bullshit.
ExpressLane
Verified User
Can't you read? They need permits to build pipelines from the wellhead to a central point of collection. So a drilling permit is useless if you can't build a pipeline to ship the oil to market. No one is going to invest in drilling an oil well permit unless they have a permit to build a pipeline to ship the oil or gas.And they have over 9,000 PERMITS for land that was already leased. It seems you don't know what a permit is.
Last edited:
The reason they don't drill on those lands is because doing so will increase the supply and reduce the price per barrel, thus reducing their profits.
It's not in an oil company's interest to start a new well because of the effect the increased supply will have on the price per barrel, which will reduce the oil company's revenue and profits.
The exact same thing happened with natural gas and the result was 400 natural gas company bankruptcies to the tune of more than $100B from 2015-2020.
ExpressLane
Verified User
Exactly!
My old partner was a geologist undergrad while in Med school he supported his family by putting together small oil leases to sell to oil producers who in turn sell shares to investors. I invested in some of his deals because I knew they were a particularly good chance of striking oil. The wells are in the Texas Permian basin. Rising oil prices are good for me but very bad for America. Trust me if oil companies could make money buy simple drilling on a Federal lease then they would be drilling tomorrow. I remember one well I bought 3% of took 8 months to get a rig on the site. That one was a dry hole
Last edited:
ExpressLane
Verified User
Why was the rig count higher when oil was around $50 a barrel when Trump was in office.
When Trump took office rig count was 683 and later it peaked at 1077 in 2018 bent crude was $57.36 per barrel . Now the rig count is around 660 and bent crude is over $100.
https://www.eia.gov/dnav/ng/hist/e_ertrr0_xr0_nus_cm.htm
Oil was $50/barrel because OPEC increased the supply in 2015.
The price per barrel in 2014 was about $96, which then dropped to about $52 in 2015, and then dropped again to $46 in 2016.
All thanks to OPEC production increases.
That resulted in tanking 42 US oil companies in 2015, and 58 US oil companies in 2016.
Increasing domestic production will not have anything more than a nominal and temporary impact on the price per barrel because we only control 2% of the world's global oil reserves while OPEC controls 80% of them.
You fucking idiots never seem capable of understanding that, and I think it's because your family tree looks like a stump.