![]() ![]() The reality is that federal lands vastly underperform on oil and gas production versus state and private lands because the federal government owns the majority of the mineral estate. However, at the end of the Obama administration in 2016, federal lands only contributed 23.7 percent of total domestic oil production. In 2009, at the start of the Obama administration (the Obama administration was as anti-oil and gas production as the Biden administration) production on federal lands totaled 35.7 percent of total domestic oil production. There are important reasons why the vast majority of domestic oil production occurs on non-federal lands (private and state lands). ![]() There certainly has been a shortage of capital to drill more wells, but with the price of oil skyrocketing that may change somewhat. Psaki should ask fellow high-ranking White House staffer Brian Deese, the current Director of the National Economic Council and former Global Head of Sustainable Investing at BlackRock. “Most of the debt financings are principally extending debt maturities and not being used to fund…production growth.”Īlso, as David Blackmon, Senior Contributor at Forbes explained just last month, “Also limiting any response is the reality that many big producers remain intimidated by no-growth pressure from the ESG investor groups like BlackRock.” To understand this, Ms. It raises the prospect that the nation’s output-which has been largely flat this year-may not rise to offset a recovery in demand as major economies roll back coronavirus restrictions.Ĭompanies are refraining from deploying money to raise output, which in turn is tightening the balance between supply and demand, said Lex Maultsby, a managing director for leveraged finance at Bank of America. The restraint demanded by investors stands in contrast to previous periods of breakneck growth in U.S. Psaki’s claims, oil and gas companies have faced tremendous pressure in recent years to, as the Wall Street Journal put it “ shore up balance sheets rather than to boost production.” The WSJ explained: domestic oil production doubled and average gasoline prices fell by 27 percent from $3.680 a gallon in 2012 to $2.691 a gallon in 2019.Ĭontrary to Ms. ![]() Between 2012, when he made these claims on the campaign trail and 2019, U.S. But President Obama was completely wrong. While running for re-election, President Obama said that “ we can’t drill our way to lower gas prices” and that if we are going to avoid high gas prices every few years, we will need an all-of-the-above strategy. We will also note that the position of the United States as a net exporter of petroleum and petroleum products would have been considered a fantasy by the experts when Ms. It is also true that oil is a globally-traded commodity and that the impacts of Russia’s invasion of Ukraine will increase oil and gas prices globally. As we will explain below, that is not because of the federal government, but in spite of it. It is certainly true that oil and natural gas production is increasing. domestic oil production does not really matter. The White House is feeling the pressure of its anti-North American energy policy and on Sunday afternoon, Jen Psaki, the White House Press Secretary again took to Twitter to try to argue that U.S. Canada is our top importing partner and has enormous quantities of oil. What the Biden administration has not done is meet with domestic oil and gas producers to try and work to increase domestic production, nor have they met with the Canadians to try to increase Canadian oil production and exports to the United States. On Sunday, there was a new report of sending a delegation to Saudi Arabia to make nice with the Saudis to put more oil on the global market. Recently, reports are that they are trying to get a deal with Iran that would put Iranian oil on the global market and that they met with Venezuela to possibly end sanctions on it and put Venezuelan oil on the global market. Last summer they called on OPEC + (the most important part of the “plus” is Russia) to increase oil production. That is the inescapable conclusion from their actions over the past year. The Biden administration does not like U.S. ![]()
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