• 3 minutes War for Taiwan?
  • 7 minutes How China Is Racing To Expand Its Global Energy Influence
  • 10 minutes Is it time to talk about Hydrogen?
  • 1 min U.S. Presidential Elections Status - Electoral Votes
  • 52 mins Locked Thread on the election
  • 9 hours “Consumers Will Pay For Carbon Pricing Costs” by Irina Slav
  • 2 days can Trump pardon himself?
  • 1 hour British PM Eyes Banning Gasoline and Diesel Car Sales
  • 12 hours Censorship in USA
  • 10 hours Michael Moore Cranking Up Planet of the Humans Again
  • 1 day WTI / ​​​​​​​Price Forecasting 
  • 2 days Renewables deprogramming
  • 1 day CREO Syndicate – Ultrawealthy & Oil-igarchs Multi-Trillion Investments on Climate & Green
  • 23 hours Conoco Pledges ‘Net-Zero’ Emissions in Break With U.S. Rivals
  • 15 hours San Francisco Imposes Natural Gas Ban

Breaking News:

Goldman Speculates On The Future Of OPEC

U.S. Goes Ahead With Oil, Gas Lease Sales Despite Price Crash

Despite calls for immediate suspension of oil and gas drilling lease sales on federal land amid slumping prices, the U.S. will hold lease sales this week in four states, Reuters reported on Tuesday. 

The Bureau of Land Management (BLM), part of the Department of the Interior, has slated for Tuesday and Thursday lease sales in four Western states: Montana, Nevada, Wyoming, and Colorado, according to the tentative schedule of BLM.   

Conner Swanson, a spokesman for the Department of Interior, did not reply to a Reuters request for comment, but had said last week that the lease sales on federal land were “being evaluated on a case-by-case basis.”

In Wyoming, BLM Wyoming has proposed to offer 105 parcels in the March 2020 quarterly oil and gas lease sale. Those parcels total about 118,219 acres, BLM Wyoming says, noting that the state is one of the top U.S. energy producers on public lands. In 2018, BLM Wyoming raised nearly US$117 million through oil and gas lease sales.   

Typically, a total of 48 percent of lease sale revenues go to the state, while the remainder goes to the U.S. Treasury, the BLM said. Lease sales are one of the pillars and critical contributors to the Trump Administration’s America-First Energy Plan. 

However, the sharp drop in oil prices over the past week has had some organizations concerned that the U.S. taxpayer will not be getting a fair return on oil and gas leases. 

Last week, conservative and taxpayer groups called on the U.S. Administration to suspend lease sales on our public lands for the rest of the year amid the current oil glut, depressed prices, and systemic fiscal weaknesses in the leasing process.  

“In this environment, it is impossible for the American taxpayer to expect anywhere near a fair return on oil and gas leases. This is due to more leases selling at the minimum bid amount, or worse, at the even lower non-competitive lease rate. Just last week, the administration held a lease sale for public lands in Utah where nearly 90% of acres sold received the minimum bid of $2 per acre. In addition, oil produced during a depressed market brings in fewer royalties,” nonpartisan budget watchdog Taxpayers for Common Sense (TCS) and Conservatives for Responsible Stewardship (CRS) said in a statement. 

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

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