Biden needs an energy plan

[dan_s]

Federal lands account for about 22% of U.S. oil production, 12% of natural gas and 40% of coal. Replacing all of this energy won't be easy or cheap.

Goldman says Biden’s first steps are bullish for oil prices . Bloomberg
Initial steps taken by U.S. President Joe Biden’s administration may help support the oil market this year and next, according to Goldman Sachs Group Inc. A focus on fiscal spending, a probable lack of urgency in lifting sanctions on Iran and restrictions on the North American energy industry all combine to support oil prices, analysts including Damien Courvalin and Jeff Currie wrote in a note dated Jan. 21.

Biden to reverse Trump orders easing up on oil and gas industry; some fear economic hit . Associated Press
President Joe Biden has put his team to work reviewing dozens of actions taken by former President Donald Trump, aiming to reverse orders that he says harm the environment or endanger public health. For the energy and auto industries, the impact could be far-reaching. Biden aims to reduce harmful emissions from cars, trucks and SUVs. Oil and gas operations are being scrutinized as well — from how companies extract resources from the ground to the safety of pipelines that distribute the fuels.

Oil's allies gird for Biden fossil fuel moratorium . E&E News
The Biden administration has yet to act on its campaign promise to bar oil and gas leasing and permitting on federal lands, but the political battle has already begun. Rumors that the Biden administration will announce a one-year oil and gas moratorium this week have marshaled oil-friendly Republicans to a fight reminiscent of the Obama era. But progressives, too, are galvanized and plan to press for an even more aggressive action to retire the U.S. government's vast federal mineral estate.

‘Your order is a direct attack’: Native American tribe condemns Biden Administration’s Secretarial Order . Daily Wire
On Thursday, January 21, the day after President Joe Biden’s inauguration, a Native American tribe issued a blistering letter to Biden’s Acting Secretary of the Interior, Scott de la Vega, blasting his Secretarial Order No. 3395. As Energy In Depth reports, the Order “temporarily suspends delegations of authority regarding leasing and permitting on federal lands, with a significantly reduced staff able to approve such items. This order does not halt leasing or existing development, and at its face is a temporary measure, but is certain to create bottlenecks that last well-beyond the 60-day limit on the order.”

MY TAKE: Attacking all hydrocarbon based energy supply without a detailed plan on how to replace it is childish.

[dan_s]

Biden's Ban: As highlighted by Stifel's E&P team in a note titled Biden administration halts approval of new oil and gas permits on federal
lands, placing long-term Permian and GOM production at risk, the Biden Administration wasted no time freezing permits on Federal lands.
From a service perspective, we believe: 1) there could be an acceleration in activity in these areas given the healthy inventory of drilling
prospects already controlled by E&Ps; and 2) we do not expect a wider spread ban on fracking given the enormous employment and
economic consequences it would have on the United States. While there will likely be rhetoric around this, we believe cooler heads will
prevail.

Do we have "cooler heads" in Washington anymore?

[k1f]

<<we believe cooler heads will prevail.>> --Stifel

<<Do we have "cooler heads" in Washington anymore?>> --Dan

Politics not energy analysis.

[dan_s]

Just to be clear, I have close to zero faith in our federal government on both sides of the isle. FEAR is being used to control all of us.
> Does cancelling the Keystone XL pipeline, so more oil will be transported by trains and trucks make any sense?
> Does banning access to federal lands without a plan to replace all the energy we get from federal lands make any sense?

[dan_s]

"U.S. Interior Freeze on Federal Permits, Leases, Easements and Land Draws Attention - Despite a request to amend the order from the Ute Indian Tribe (and potentially more to come) and many E&Ps having years of existing federal permits, operators with federal acreage underperformed yesterday after the U.S. Interior Dep. temporarily halted approval of drilling permits and leases on federal lands. We believe a knee jerk reaction on the part of investors contributed to much of yesterday’s decline given virtually no onshore federal producer would likely be impacted until 2023 at the earliest and possibly years later for offshore producers given the length of their permits." - by Neal Dingmann at Truist Financial