• 5 minutes Covid-19 logarithmic growth
  • 8 minutes Why Trump Is Right to Re-Open the Economy
  • 12 minutes Charts of COVID-19 Fatality Rate by Age and Sex
  • 14 minutes China Takes Axe To Alternative Energy Funding, Slashing Subsidies For Solar And Wind
  • 3 hours Its going to be an oil bloodbath
  • 52 mins Trump will meet with executives in the energy industry to discuss the impact of COVID-19
  • 2 hours What If ‘We’d Adopted A More Conventional Response To This Epidemic?’
  • 2 hours Marine based energy generation
  • 3 hours Cpt Lauren Dowsett
  • 2 hours The Most Annoying Person You Have Encountered During Lockdown
  • 4 hours Which producers will shut in first?
  • 27 mins US Shale Resilience: Oil Industry Experts Say Shale Will Rise Again
  • 13 hours CDC covid19 coverup?
  • 3 hours Real Death Toll In CCP Virus May Be 12X Official Toll
  • 4 hours Washington doctor removed from his post, over covid
  • 13 hours How to Create a Pandemic
  • 13 hours Iran-Turkey gas pipeline goes kaboom. Bad people blamed.

Breaking News:

IEA: OPEC Can’t Save The Oil Market

How Low Could U.S. Oil Production Actually Go?

How Low Could U.S. Oil Production Actually Go?

Tanking oil prices and no…

Oil Majors Rally On Rising Crude Prices

Oil Majors Rally On Rising Crude Prices

Big Oil’s stocks soared on…

James Burgess

James Burgess

James Burgess studied Business Management at the University of Nottingham. He has worked in property development, chartered surveying, marketing, law, and accounts. He has also…

More Info

46 Million Acres of Federal Land and Water Leased for Drilling just Sitting Idle

46 Million Acres of Federal Land and Water Leased for Drilling just Sitting Idle

The oil and gas industry has been working in unison with a few congressional allies to constantly blame the Obama administration for the current energy prices in the US, claiming that the government are blocking domestic energy development by not releasing enough permits for exploration and drilling.

The government has now hit back at these claims by releasing a report that proves that the claims against them are actually unfounded and that roughly 46 million acres of federal lands and waters leased for drilling are sitting idle. The oil and gas companies are only actively drilling or starting to develop less than a third of the area that they have leased offshore.

Ken Salazar, the Interior Secretary, said that this analysis highlights the White House’s commitment to allowing oil and gas drilling on federal land and waters. “We continue to make millions of acres of public lands available for safe and responsible domestic energy production on public lands and in federal waters. We also want companies to develop the tens of millions of acres they’ve already leased but have left sitting idle in order to further reduce our reliance on foreign oil as quickly as possible.”

But the oil and gas industry argue that it takes time for the companies to perform seismic tests of the region, and then plan for drilling permits. Kathleen Sgamma, vice president for government and public affairs at the Western Energy Alliance, said that, “the administration continues to deflect blame for leases that are not producing onto the industry, yet their rhetoric displays a misrepresentation of how oil and natural gas development on federal lands works.” The industry representatives profess that the information on leases is misrepresentative because the government delays on providing the drilling permits; but in 7,000 cases observed in the report, the companies had been granted both leases and drilling permits, and still haven’t started work.

In an attempt to spur the development of this idle land, the Interior Department has decided to boost the annual rates for offshore acres that are leased, but are not producing oil. They have also shortened the length of time that a lease can be held before initial drilling starts.

It does seem that the Obama administration is doing more than the oil and gas companies would lead us to believe to increase domestic production.

By. James Burgess of Oilprice.com



Join the discussion | Back to homepage




Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News