Posted on 03/31/2022 12:45:18 PM PDT by blam
U.S. President Joe Biden outlined a series of steps the White House is taking to reduce high prices at the pump.
The U.S. President called on Congress on Thursday to make American oil companies pay fees on wells from leases they have not used in years and on acres “that they are hoarding without producing,” as part of a plan to respond to “Putin’s price hike at the pump.”
While the Administration announced a massive release of 180 million barrels of oil from the Strategic Petroleum Reserve (SPR) over six months, the largest ever in history, it did not spare criticism toward the domestic producers. According to the U.S. Administration, oil firms are not ramping up production fast enough to fill the gap in global oil supply and ease the upward pressure on U.S. gasoline prices.
“Still, too many companies aren’t doing their part and are choosing to make extraordinary profits and without making additional investment to help with supply. One CEO even acknowledged that, even if the price goes to $200 a barrel, they’re not going to step up production,” the White House said.
U.S. shale producers, apart from keeping a capital discipline, are constrained by supply chain bottlenecks in ramping up production RIGHT NOW, as the Biden Administration wants.
B>For example, even if ConocoPhillips decided to pump more oil today, the first drop of new oil would come within eight to 12 months, CEO Ryan Lance told CNBC earlier this month.
According to the U.S. Administration, however, the U.S. oil and gas industry “is sitting on more than 12 million acres of non-producing Federal land with 9,000 unused but already-approved permits for production.”
“Companies that are producing from their leased acres and existing wells will not face higher fees. But companies that continue to sit on non-producing acres will have to choose whether to start producing or pay a fee for each idled well and unused acre,” the White House said today.
The U.S. industry has already signaled its frustration with the talk of the leases and the pump-more-right-now calls.
“The talk about price gouging is tiresome. Discussion of federal leases and those leases being unused without an honest discussion about all the constraints and regulatory issues to drill is also unhelpful,” an E&P executive said in the quarterly Dallas Fed Energy Survey earlier this month.
“The regulatory environment is not friendly,” another executive noted.
Great solution to partner with oil companies to increase production, THREATEN HIGHER NEW FEES.
Usually when I get low on food I go out to local growers and buy more——I don’t buy food from Iran and raid my emergency stash at the same time.
Biden is a moron. He probably thinks drilling for oil is like putting gas in your car. You know, real easy to do. 🙄
“Putin’s price hike at the pump.”
A sickening example of how the contempt he and his handlers have for the people.
Trump had gas below $2/gal w/o these threats. What changed?
The fining of non activity on federal leases is a breach of contract and would not stand up in court. If one side (gub-mint) unilaterally changes the contract by imposing fines, it nullifies the contract. Then the feds would have to refund the lease to the oil company.
Go ahead Joe, give them their money back and watch them walk, see how that fixes supply.
Pretty sure whoever writing slow Joe’s scripts knows this. It’s all bluster to try and place blame someone else for problems lefty policy creates. Media will dutifully run with it. They need this diversion to paper over the fact that the reserve release will have nominal impact. US refiners can’t absorb 1MM bbl a day more instantly.
“One CEO even acknowledged that, even if the price goes to $200 a barrel, they’re not going to step up production,” the White House said.”
He (Scott Sheffield, CEO of Texas shale driller Pioneer Natural Resources) went on to say that a major reason was because of the new restrictions and delays imposed by the Biden Administration. (as well as the financial beating frackers took on the last two boom/bust price cycles)
They need to rationally assess that they will be able to recoup their costs and profits, before they go flinging shareholder money at new production. Government has been imposing new costs, delays, and risk since Biden took office.
We should have been building refineries and leaving our pipeline open. Seems they are trying to break us quick..
Biden must be stopped or he will leave us with nothing for our defense if we need it. He is not smart enough to know what he is doing. Because of that, he is manuveuring us into a place of military weakness. The one thing I am grateful for is that I did not vote for the democrats in 2020.
What azzholes in the White Hut. What fool would invest in an industry where the country's president has said "We are going to destroy your industry"? Petroleum, coal and power are among the most capital intensive industries and require a stable regulatory environment to ensure your investments will pay off in 20 or 30 years. With jerks like Biden wiping out $10 BILLION of investment in a pipeline and canceling leases, is it any surprise investment is in the toilet?
The extremely lame "We are all in this together" argument simply doesn't wash when it comes to corporate fiduciary responsibility to shareholders and wise investment decisions.
With radical greens forcing companies to adopt ESG (Environmental, Social and Governance) policies that are very anti-fossil fuel, who will invest?
Is there anything more unseemly and pathetic than the bastard who single-handedly killed the industry now begging that industry to produce more?
Leave it to the Dems to excoriate business at every turn and, at the same time, come begging hat in hand for more output.
What a shame we don't have a stellar businessman in the White House. I think we had one some time ago, didn't we?
Most excellent
Never attribute to stupidity that which can be attributed to evil.
Never attribute to stupidity that which can easily be attributed to evil.
Case in point:
Biden: Drilling for oil won't lower gas prices.
Also Biden: Releasing more oil from the Strategic Oil Reserves will lower gas prices.
These are the actions of an evil regime hell bent on destroying America. There will no oil left in our SPR to refine to fuel our own tanks and military once our enemies tanks arrive and their jets drop bombs from overhead.
This is all by design. We can see this coming from miles and miles away.
Great Post!
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