Jen Psaki: “There are 9,000 approved oil leases that the oil companies are not tapping into currently”… Aeuhhh?

[Sunsettommy]

Pissi is stupid as hell and a big fat liar too.

Watts Up With That?

Jen Psaki: “There are 9,000 approved oil leases that the oil companies are not tapping into currently”… Aeuhhh?​

Guest “WTF is she talking about?” by David Middleton

Excerpt:

This post is the first sequel to: Democrat Senators Demand That Oil Companies Increase Production.

As I write this post (the morning of March 7, 2022), West Texas Intermediate (WTI) is right around $120/bbl. It actually topped $130/bbl over the weekend. This morning, I paid $3.999/gal for regular unleaded gasoline in Houston, Texas. While I make my living finding oil & gas and high oil prices are good for the bottom line right now. These prices are likely to be unsustainable and could trigger a recession and subsequent oil price crash.

The Brandon maladministration is increasingly facing questions about why they aren’t taking measures to increase domestic oil production. This is a typically moronic Democrat political hack response to the questions:

LINK

 

[1srelluc]

So Red Jen, how many approved drilling permits are there to go with those leases? A lease is only as good as the drilling permit. Without those they will simply let the leases expire.

 

[JohnDB]

These prices are likely to be unsustainable and could trigger a recession and subsequent oil price crash.

In two weeks the recession will be official.

 

[WinterBorn]

So Red Jen, how many approved drilling permits are there to go with those leases? A lease is only as good as the drilling permit. Without those they will simply let the leases expire.

There are 9,000 drilling permits.

 

[1srelluc]

There are 9,000 drilling permits.

link?

 

[JohnDB]

There are 9,000 drilling permits.

Paying $10,000 dollars for a lease on a piece of property that might produce $2,000 in oil doesn't work.

 

[Sunsettommy]

There are 9,000 drilling permits.

Many of them not viable, did you read the article at all?

 

[Votto]

Pissi is stupid as hell and a big fat liar too.

Watts Up With That?

Jen Psaki: “There are 9,000 approved oil leases that the oil companies are not tapping into currently”… Aeuhhh?​

Guest “WTF is she talking about?” by David Middleton

Excerpt:

This post is the first sequel to: Democrat Senators Demand That Oil Companies Increase Production.

As I write this post (the morning of March 7, 2022), West Texas Intermediate (WTI) is right around $120/bbl. It actually topped $130/bbl over the weekend. This morning, I paid $3.999/gal for regular unleaded gasoline in Houston, Texas. While I make my living finding oil & gas and high oil prices are good for the bottom line right now. These prices are likely to be unsustainable and could trigger a recession and subsequent oil price crash.

The Brandon maladministration is increasingly facing questions about why they aren’t taking measures to increase domestic oil production. This is a typically moronic Democrat political hack response to the questions:

LINK

See, no reason not to buy Russian oil

 

[Sunni Man]

Just because an oil company has an approved lease on a piece of land doesn't mean they want to drill on it for a number of reasons. ....

 

[JohnDB]

Just because an oil company has an approved lease on a piece of land doesn't mean they want to drill on it for a number of reasons. ....

Exactly...most wells drilled don't produce oil. 1 out of three to five will.

Rock formations can be troublesome as well as a LOT of issues.

 

[White 6]

Paying $10,000 dollars for a lease on a piece of property that might produce $2,000 in oil doesn't work.

Then why did the pay $10,000 for the lease?

 

[WinterBorn]

link?

At about 1:25 or so. Straight from the press secretary's mouth.

 

[WinterBorn]

Exactly...most wells drilled don't produce oil. 1 out of three to five will.

Rock formations can be troublesome as well as a LOT of issues.

And when do you know they will not produce? Most of the time, when you drill.

 

[JohnDB]

Then why did the pay $10,000 for the lease?

It wasn't originally $10,000.
Biden TRIPLED the cost of the leases with a host of fee increases.

So the oil companies are abandoning their leases.

Fees for pouring a gravel pad, fees for driving heavy equipment on a gravel pad, fees for setting up equipment on a gravel pad....and on and on it went.

 

[JohnDB]

And when do you know they will not produce? Most of the time, when you drill.

They hire geologists to graph and lay out the rock formations under the ground. I have no clue how they do their voodoo. I am not a geologist. But they look for particular geological formations as to finding the oil. It doesn't always work but it does often enough that it's worth a look by drilling and seeing. Unless the lease and set up costs are too much.

 

[WinterBorn]

U.S. Field Production of Crude Oil (Thousand Barrels per Day)

That is a chart showing domestic oil production for the last 100 years. US oil production is higher now than in 2016 and 2017.

And 2022 is predicted to break all production records.

 

[WinterBorn]

It wasn't originally $10,000.
Biden TRIPLED the cost of the leases with a host of fee increases.

So the oil companies are abandoning their leases.

Fees for pouring a gravel pad, fees for driving heavy equipment on a gravel pad, fees for setting up equipment on a gravel pad....and on and on it went.

Link?

 

[Sunni Man]

Buying an oil lease is basically gambling there is oil under the ground.
But if you buy a lease, and then nearby leases drill and find no oil.
You're stuck paying on a lease that you have no intention of drilling on.

 

[Sunsettommy]

And when do you know they will not produce? Most of the time, when you drill.

You still didn't read the article about those 9,000 leases here it is you ignored:

"If Ms. Psaki is referring to tracts that are open for leasing, there are 10,638 open tracts in the Central Gulf of Mexico planning area.

According to Lexco OWL, approximately:

• 38% of those Central GOM tracts have never been leased in the history of Gulf of Mexico US lease sales… A pretty good indication that those tracts are not prospective.
• 28% of the tracts are deepwater leases that were drilled. These wells were either dry holes or failed to find economically recoverable hydrocarbons and were subsequently relinquished.
• 15% of the tracts are shelf leases that used to be productive… Old fields that have been plugged, abandoned and the infrastructure has been removed due to BSEE’s Idle Iron rule.

81% of the currently open leases in the Central GOM have never been leased, leased and unsuccessfully drilled or are abandoned oil & gas fields. This doesn’t mean that none of them are prospective. A lot of oil & gas gets discovered in old fields. There’s an old adage, “The best place to look for oil, is where it’s already been found.” That said, most of these leases have been recycled many times through annual leases sales over the past 50+ years. The prospects of large discoveries on currently open Central GOM acreage are fairly slim. And, until they resume holding lease sales, as they are legally required to do, the open acreage is about as useful as mammary glands on a bull."

===

Just because they have a bunch of leases doesn't mean they are all viable.

The real problem is continual Federal interference as pointed out in the article you didn't read:

"It’s a very tough ask when the feds have created so much uncertainty from a regulatory perspective with rhetoric and actions such as banning drilling on federal lands, pulling pipeline permits, etc."

Right now the Obama chosen Judge has illegally blocked a legal lease sale last November:

"Over 300 “pre-approved” leases are currently being unlawfully blocked by a corrupt Obama judge. These tracts received bids in the November 2020 lease sale. None of these leases have been awarded."

 

[Votto]

If we could all be honest with each other, democrats would admit they are at war with fossil fuels, and because of this, have affected prices going up before the Ukraine war.

But if you think fossil fuels are destroying the globe, what choice do you have?

So they lie and pretend that stopping the Key Stone Pipeline and stopping further oil exploration has not caused prices to increase and has not caused US dependence on fuel from Russia. But if you believe the cultists about the world ending due to carbon emissions, what choice do you have, so they go along with the false narrative.