|
|
The
views expressed
on this page are soley those of the author and do not
necessarily
represent the views of County News Online
|
The Daily Signal
Oil Production
Up 53% Since 2010, But Declining on Federal Lands
Patrick Tyrrell
May 05, 2015
U.S. oil production is up 53 percent since 2010, but the increase has
occurred almost entirely on non-federal lands. Production on federal
lands has not seen a similar liftoff, and is actually down overall.
The reasons federal area drilling has lagged is not because of lack of
oil.
Proved oil reserves under federal areas account for about 26 percent of
all proved crude oil reserves. (Proved oil reserves are amounts
accessible under current policy, prices and technology). If the new
methods for extracting oil increase production on private lands, they
can also on federal lands.
The main difference between drilling for oil on non-federal and in
drilling on federal lands is whether or not the driller has to navigate
the complex regulatory obstacles required by the federal government.
President Obama has said, “As Democrats, we believe in reducing our
dependence on foreign oil and protecting our planet. Today, America is
number one in oil; number one in gas; number one in wind power.”
But if America is number one in oil and gas, it is certainly not
because the federal government is making it easy to drill. During the
Obama administration:
Fewer federal leases are being offered than in
previous years.
Federal permits to drill have taken longer to be
approved than during previous years, and
According to the Congressional Research Service, the
permitting process is complex and cumbersome.
In fact, the Bureau of Land Management took 227 days on average to
process an application for permission to drill in 2014. State agencies
sometimes approve permits in 10 days, and leave many surface management
issues to be negotiated between the oil producer and the private land
owner. For obvious reasons, an oil producer would rather deal with one
farmer than be ordered around by a complex and multi-faced federal
government.
Now the Obama administration is seeking to raise royalty fees for oil
and gas leases on federal lands. That’s a shame, since more complex
rules and higher costs will result in less production, not more; all
bragging rights aside.
Read this and other articles, some with videos, at The Daily Signal
|
|
|
|
