Biden administration raises cost for oil and gas drilling on public lands for first time in decades

Trump is the reason prices are higher today

 

Agree. And most do. Although I wouldn’t limit that sentiment to men

 

CNN is reporting that Trump is the reason a meteor hit the Earth a long time ago and wiped out oppressed, marginalized and underrepresented dinosaurs of hundreds of genders.

 

I guess you took the wrong bus.

 

Pride? When was the last time you saw a lib proud of anything except for virtue signaling?

 

Fox reported it was Obama and Biden's fault

 

You must have missed CNN’s earth shattering report that dinosaurs were wiped out due to global warming because cavemen were using incandescent light bulbs.

 

you must have missed faux reporting that God wiped out the dinosaurs cause some of them were gay

 

Biden administration raises cost for oil and gas drilling on public lands for first time in decades

 

Once again, Trumpers are reacting like an offended catholic nun.

1. The FEDERAL onshore oil & gas royalty rate was raised from 12.5% to 18.75% effective April 01, 2022, and AT PAR with STATE LAND’s average royalty rate, and AT PAR with George W. Bush offshore royalty rate.

Also, contrary to a Republican belief, the 18.75% rate HAS NOT slowed drilling activities on federal land, certainly not in New Mexico.

2. WHAT’S NEW THEN?

The Federal land oil&gas surety bond was raised from $10,000 to $150,000

A surety bond is like an insurance policy in the event an oil & gas company become insolvent, and insures the cost of plugging/remediating abandoned wells. Oil&Gas surety bond premiums are based on operator’s credit scores, and range from 0 to 15%.

In other words, it’s a “TAXPAYERS DO NOT HAVE TO PAY FOR THE COST OF A CLEAN UP” insurance policy.

QUESTION; Is a $150,000 surety bond for one well too high?

ANSWER; Apparently not, according to the following headline;

Oct 2020…..Texas taxpayers face $117 billion bill for orphaned oil wells

“The state of Texas and its taxpayers could be on the hook for paying up to $117 billion for the cleanup of abandoned wells AS GROWING NUMBER OF U.S. OIL COMPANIES GO BUST, and the guarantees (surety bonds) for paying for the cleanup cover only 1% of estimated costs”

NOTE; In Texas, The Railway Commission requires the following surety bonds from their oil & gas operators;

10 and fewer wells; 25,000 surety bond
More than 10 wells but fewer than 100; $50,000
More than 100 wells; $250,000

 

They'll probably say this is a good thing to try and bully you into buying a substandard electric vehicle. Yeah do you spend too much on gasoline get ready to pay more to charge an electric vehicle if you don't have own a home or you can charge at home. We get ready to pay $80,000 for a s*** box car that is less useful.

Don't think it's a good thing. In the nail wonder why they have to pay $300,000 for a car.

 

Insane that's ridiculous argument because the government made everything cost more they should get more money from us after stealing more money from us.

Inflation is a tax on savings. So they steal from your savings by printing more money and then because they stole from your savings they get to steal from you at the gas pump more.

Wow.

 

I really don't have an issue with it. I mean if you can afford a billion dollar oil operation, you can afford $150K lease fee. This should help take some of the speculation out of the leasing market in which people buy up leases hoping that an actual producer will come along and pay them more to assign it to them. There seems to be too many leases with people just squatting on them with no intention to develop the wells themselves.

 

That's really cute but as usual such a progressive idea lacks any substance in reality.

 

Fuel increases shouldn't increase because Grubmint raises domestic tax on domestic drilling and exploration. What does our government DO to merit a greater piece of that pie?

We already pay,

Again, the federal government does nothing to merit more tax per gallon.. Now state tax is a different srory..

 

You do realize that there was a ban on exporting crude oil from the US, and in 2015 Obama (Democrat) repealed that ban? And look what happened.
https://www.macrotrends.net/2516/wti-crude-oil-prices-10-year-daily-chart

 

150K Lease Fee???????

It’s a 150K insurance policy, and premiums are based on the financial strength of a company, thus, the annual premium for a company such as Chevron will be less than $2,000…..peanuts for a company that produces 1.5 million barrels per day of 27,000 active well, thus, an average daily production of 55 barrels per well.

 

prices were falling until Trump, interesting

 

All ideas lack reality until they become reality. What's funny is the thought that conservatives would have an idea. The very nature of their thought process is living in the past.

 

At least this conservative isn't the one suggesting that everyone should go use a public bus. That's completely disconnected from reality to think that such a thing would work for so many people

 

You miss the point, any tax levied on the oil company by Washington is then paid for by you and I..

Your masters in Washington are just fleecing you via proxy or shadow theft..

When will American wise up

 

Or.. we could impose the fees and taxes that offset the cost of administering and overseeing compliance with the leases, realizing that the private company efforts to extract, refine, and distribute this resource is good for us, our economy, and our security?

The only reason they want to raise fees and taxes on these permit holders is so more inefficient government leeches can have jobs draining our countries productivity while adding very little value.

 

If your arguments are dependant on all-or-nothing or black-and-white based criteria, it's because your perspectives are terrible.

 

The marching orders from headquarters are in.... The liberal talking points are being disseminated across the board.

Those oil companies just make too much money so we need to charge them more like it's not going to hurt the consumer in the end..

Imagine being directed to shill and cheer for more government overreach

 

I’m not the one claiming this is going to raise prices.