By suspending oil and gas leases. Delaying permits, some for 7 years. Out of control EPA regulations on our refineries has caused nearly half of them to close.
Refineries were shut down because the demand was so low. That's the ONLY reason. And this has been verified by the oil companies themselves. We had too much refining capacity even before Covid.
And now that Mexico has finished their HUGE refinery, they no longer need refineries in Texas to do it for them.
When was the last time you seen gas station all across the city that said "No gas" because we didn't have enough refineries? It's been decades. The last time was during Reagan. Except when the pipeline going up the east coast was hacked and shut down.
The gas and oil companies have to pay for the land they lease from the owners. If they don't continue to produce, then when and if the government loosens the noose, they would have to pay the bonuses again to the property owners, and those puppies are massive. I'd love another one of those.
Private citizens sign their own contracts with oil companies, IF the land owner also owns the mineral rights. If production is down, say from lowering the pressure in the well (which is controlled by the oil companies at the disposal sight), then the land owner doesn't get squat, because 99.99999% of all lease contracts with oil companies are based on production amounts and percentages.
On federal lands it's about the same, but much more detailed.
So, the companies are producing the minimum under their contracts with the owners. What they produced under Trump garnered royalty checks averaging $600 to $1,000 a month.
Under Biden = $37.00.
There ya go. That's how.
Do you know how oil companies produce more or less oil? At a location, usually owned by the oil companies, they can pressurize an oil cavity. That cavity may have 50 wells in it. They can either pressurize the well to produce more. Or let the pressure subside itself though all the wells themselves.
So drilling more wells isn't near as important to production as keeping the right pressure in existing cavities.
All this talk about new wells, from someone who spent years in the business, just makes me think you people don't know anymore than what the news tells you.
Biden's war on oil is putting us in a bad position. Using our reserve to compensate for it is worse. And now it's depleted to the point that the turnip has had to open up 80 million acres in the Gulf of Mexico to the gas companies.
Biden didn't go to war with the oil companies. He only pretended to, so the oil companies had a patsy. Biden didn't close one lease or shut down one pipeline that had anything what so ever to do with current production. Or production within the next 5 years.
Those oil leases he shut down in the gulf, they weren't being used. And weren't going to used for at least 5 years. The oil demand was so low, there was no need for the oil companies to even perform geological studies on it. Which takes years.
Once Biden opened up the leases, environmental groups sued and had the leases shut down again. But lost a few months later. And now, after a couple of years are still not being used.
