Energy Prospectus

In a Fact Check released on March 7, the Institute for Energy Research (IER) pointed out that oil exploration on federal lands rapidly declined under the Obama administration.

“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,” the IER wrote.

“You can hold a lease without deciding to develop or produce it based on the economics of that lease. Companies have always made decisions based on lease economics,” Ingham said of TAEP. “To suggest they’re not going to offer more leases until companies drill what they have now—that’s making decisions on behalf of companies that the administration is neither qualified nor authorized to make.”

Tim Stewart, president of the U.S. Oil and Gas Association, had a straightforward response to Biden’s March 8 comments.

“Cut the crap and approve our permits.”

Biden administration officials are making overtures to Venezuela, Iran, and Saudi Arabia in the hopes that those countries will boost production and reduce oil prices.

Note below sent to me by an EPG member that is a petroleum landman.
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I attended an Oil and Gas Law Seminar today and this is what is happening to my industry, your freedom and our country’s ability to power our economy:

Out of the 700 Million Mineral Acres managed by the BLM, (which should be the property of the States in which they reside, but that’s a separate issue),
673.4 Million acres of that is currently UNLEASED by Oil and Gas Companies for development.
26.6 Million Acres are leased.
13.9 Million acres is NOT producing.
12.7 Million acres IS PRODUCING
480,550 acres is disturbed acreage by drilling operations. Tank batteries, well pads, etc. That’s 0.07%!!! (I’m not sure how much acreage is disturbed by pipelines, but animals and people can still use and access that land).

Out of the 9,000’ Federal permits that Jen Psaki suggests, (not sure where this number comes from), 2,200 of those permits are currently tied up in courts due to lawsuits brought by WildEarth Guardians and other such Organizations and they use NEPA, National Environmental Policy Act and the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (CERCLA). The SEC is working on a requirement that company’s incorporate climate considerations when approving funds for drilling. That won’t encourage drilling.

The pipelines necessary to get Natural Gas from a lease to a pipeline in order to sell the Natural Gas often traverses federal lands and it takes years to get the BLM to approve those. So, what do they do? Liberal states have implemented no Flare rules on the Industry. If you can’t sell the gas produced with the oil and you can’t flare it, then you won’t be able to produce the oil.

In NM, a judge recently ruled in favor of an operator. In WildEarth Guardians v. David Bernhardt, the Judge ruled that that the Company complied with NEPA requirements. So what happened? The BLM activist still haven’t approved their permits.

In 2021 the EPA imposed the Social Cost of Carbon cost at $51/Ton of CO2. If that is the measure, then the EPA can state that if a well will produce 5 million tons of Carbon, then preventing it will save $255,000,000 worth of damage, so if they tax that in order to allow the permit, it is now uneconomic to drill the well. LUCKILY, the Louisiana court ruled that this was unconstitutional, BUT the Administration will prevail someday. All you need is a few well place judges and we’re screwed. Here’s the Government article describing their disastrous and illogical plan: https://www.epa.gov/sites/default/files ... _sheet.pdf

In NM, since oil was found in the 1920’s, the NM Oil Conservation Division, (OCD), the Regulatory agency like our Railroad Commission, couldn’t impose penalties on operators without filing an action in district court. BUT in 2020 the Legislature amended the O&G Act so that they no longer have to get a judge to sign off on any penalties. The legislature put a cap on any penalty to $200,000. BUT the activists, some of which are elected, at the OCD got creative and have imposed the $200,000 to each rule violation, which now results in the $Millions. The activists put together a Base Penalty chart and a chart for Adjustment Factors. I will send the charts when I get them from the seminar people. AND, the OCD can increase the penalty if the operator had an incident in the past or if the operator was deemed to have done this “willfully”. What liberal judge in NM will rule against them?

So, we are, as we’ve known for years, being destroyed from within! Without reliable and plentiful energy, the US will not be able to sustain our freedom nor our national security. The Communists are winning, and our children have been miseducated, so they have no clue. The ignorant blindly give $ to these organizations that do not use the $ as they advertise and is used to undermine our economy.

I could go on, but please try to educate your family, friends and especially your children!!