Hilarious: New Mexico seeking exemption from Biden oil and gas leasing pause - governor

[ceo_energemsier + 1,818]

New Mexico seeking exemption from Biden oil and gas leasing pause - governor

 

Reuters) - New Mexico's Democratic Governor is pushing for her state to get a waiver from the Biden administration's pause on new oil and gas leasing on federal lands, she said in a Zoom video recording seen by Reuters on Thursday.

Speaking to the Greater Albuquerque Chamber of Commerce on Wednesday, Governor Michelle Lujan Grisham said she was "clearly concerned" about the policy and thought the state should receive an exemption because of its efforts to tackle climate change.

"Create a program that gives credit to states that are well beyond where the federal government and other states are in terms of climate change initiatives, cleaning up the environment, curbing carbon emissions and having an all of the above energy effort," Lujan Grisham told the virtual meeting.

 

"You do that, (and) New Mexico's going to get an exemption, a waiver," she said.

She said her staff met with officials at the Department of Interior to discuss this recently. The Department would not comment on the governor's remarks.

[Dan Warnick + 6,100]

2 minutes ago, ceo_energemsier said:

New Mexico seeking exemption from Biden oil and gas leasing pause - governor

 

Reuters) - New Mexico's Democratic Governor is pushing for her state to get a waiver from the Biden administration's pause on new oil and gas leasing on federal lands, she said in a Zoom video recording seen by Reuters on Thursday.

Speaking to the Greater Albuquerque Chamber of Commerce on Wednesday, Governor Michelle Lujan Grisham said she was "clearly concerned" about the policy and thought the state should receive an exemption because of its efforts to tackle climate change.

"Create a program that gives credit to states that are well beyond where the federal government and other states are in terms of climate change initiatives, cleaning up the environment, curbing carbon emissions and having an all of the above energy effort," Lujan Grisham told the virtual meeting.

 

"You do that, (and) New Mexico's going to get an exemption, a waiver," she said.

She said her staff met with officials at the Department of Interior to discuss this recently. The Department would not comment on the governor's remarks.

As predicted by a poster here on OilPrice (sorry I don't remember who).

[ceo_energemsier + 1,818]

1 minute ago, Dan Warnick said:

As predicted by a poster here on OilPrice (sorry I don't remember who).

Its too bad that the Gov of CO doesnt see oil and gas as a good thing, CO is going down the slippery slope very fast to being a ColoFornia

and a rust belt!!! Denver is going to be the next Seattle/Portland and dead like Detroit.

[Dan Warnick + 6,100]

22 hours ago, ceo_energemsier said:

Its too bad that the Gov of CO doesnt see oil and gas as a good thing, CO is going down the slippery slope very fast to being a ColoFornia

and a rust belt!!! Denver is going to be the next Seattle/Portland and dead like Detroit.

Sad.  Colorado, I am told, is a beautiful State.  Of course, so were Washington and Oregon, and California even.

[Ward Smith + 6,615]

23 hours ago, Dan Warnick said:

As predicted by a poster here on OilPrice (sorry I don't remember who).

I'll take credit 😎

[Old-Ruffneck + 1,238]

@cbrasher1 have you heard anything about stopping drilling there in S.E. NM Fed lands??

[cbrasher1 + 272]

1 hour ago, Old-Ruffneck said:

@cbrasher1 have you heard anything about stopping drilling there in S.E. NM Fed lands??

Not a word, XTO is still trucking along with 7 or 8 rigs and 4 frac crews, finishing one and going to the next with each one.  A new Nextier for XTO frac located off Whipp road starting next week.  Oxy had a Pioneer rig and they just rigged down and also have a frac crew off Twin Wells.

Edited March 13, 2021 by cbrasher1

[ceo_energemsier + 1,818]

6 hours ago, Dan Warnick said:

Sad.  Colorado, I am told, is a beautiful State.  Of course, so were Washington and Oregon, and California even.

 

[ceo_energemsier + 1,818]

15 minutes ago, cbrasher1 said:

Not a word, XTO is still trucking along with 7 or 8 rigs and 4 frac crews, finishing one and going to the next with each one.  A new Nextier for XTO frac located off Whipp road starting next week.  Oxy had a Pioneer rig and they just rigged down and also have a frac crew off Twin Wells.

The Federal "moratorium" on leases is for new leases and new drilling. But they also announced that they will "announce" in the summer, if a permanent ban would take effect.

 

 

 

US Officials: Report on Oil and Gas Sale Ban Due by Summer

The Biden administration says that it will deliver an interim report on its suspension of oil and gas sales from federal lands and waters by summer.

 

https://www.usnews.com/news/business/articles/2021-03-09/us-officials-report-on-oil-and-gas-sale-ban-due-by-summer

 

[cbrasher1 + 272]

thoughts?

 

https://www.rigzone.com/news/federal_legislation_would_hike_onshore_royalty_rate-12-mar-2021-164869-article/?utm_source=AMS_US_ENG&utm_medium=PD_SM_FB&utm_campaign=ENGAGED&fbclid=IwAR1IqPAP8d1wSBaoxiq2dAEnHKlRAWwIOpP7XNYHakRv32Patm6OQjfSwcw

[JoMack + 549]

2 hours ago, cbrasher1 said:

thoughts?

 

https://www.rigzone.com/news/federal_legislation_would_hike_onshore_royalty_rate-12-mar-2021-164869-article/?utm_source=AMS_US_ENG&utm_medium=PD_SM_FB&utm_campaign=ENGAGED&fbclid=IwAR1IqPAP8d1wSBaoxiq2dAEnHKlRAWwIOpP7XNYHakRv32Patm6OQjfSwcw

Insanity comes to mind.  As Senators Heinrich and Lujan from New Mexico write a letter to Biden begging him to lift the ban on federal leasing and drilling, they are advancing Deb Haaland's approval for head of the Department of Interior for the vote tomorrow on 3/15.

 She is the co-sponsor of the Green New Deal. During her nomination hearing  she said she will follow Biden's agenda on fossil fuels, and we know on Biden's first day he placed a moratorium on federal leasing, and drilling permits onshore and offshore.  His EO was for 60 days.  I believe this was the timeframe he had in mind  to wait for the approval of Haaland who will make this temporary ban, permanent.  We know she protested with the Standing Sioux Tribe and were successful in getting the Dakota Access Pipeline shuttered by the U.S. District Court.  The U.S. Circuit Court stayed the order to shut down telling the Army Corp of Engineers to prepare another environmental impact statement to assess the greenhouse gas emissions from oil that it carries.  

The pipeline has been moving over 500,000 bbls of crude from the Bakken in ND for 3 years and the Army Corp has until April 9, 2021 to inform the court about the impact of the decision to vacate the easement that is in the tribes crosshairs. Since the risk assessment required by the court is virtually impossible to determine and with Haaland at DOI and Granhom at DOE influencing the Corp, the chances of the Dakota Access Pipeline continuing to carry crude is virtually zero.    What is probably the most egregious part of the issue is that the pipeline runs 1,100 miles but 1/2 mile from the Standing Sioux lands 38 miles are under the Army Corps of Engineers will kill a new, safe and reliable pipeline to carry oil.  So it will join the Keystone XL, and probably the Enbridge Line 5 in Michigan, which is asking for a permit to replace a section on the pipeline, which has been moving crude for 68 years. On March 12,  Michigan Gov. Whitmer revoked the easement on the Line 5 and announced a 5 step plan to deliver enough propane from the Michigan government to supply enough to consumers.  But, the loss of jet fuel will be significant for transportation hubs in Michigan, Ohio, Indiana and Pennsylvania. Then we have the Line 3 pipeline under litigation for 340 mile of line across Michigan and a leg in Minnesota.  Again, this pipeline has been used effectively for 50 years.  Enbridge has 1,000 workers working on the pipeline now and another 1,000 on their way.  They hope to get the construction done before the courts decide on a revocation of the permit.

So, the energy sector is under attack and that is no longer being done under cover of regulations.  As federal lands are being withheld for drilling and leasing, the insanity is apparent when Rosen and Grassley decide to raise royalty and rental rates, along with minimum bids for leasing when there isn't going to be any leasing or drilling under Haaland.  According to the article, these increases are on new not existing leases so the legislation is irrelevant.   More government on both sides of the aisle coming after the energy sector as it plans to destroy it.

The votes for Haaland have already been tallied at 54 to 46, with 4 Republicans voting for her appointment, so she will be the next head of the DOI.  The 4 Republicans were Graham, SC, Collins, Maine, and surprising Murkowski and Sullivan of Alaska, an oil producing state.  So, where are their heads in protecting the citizens of the states?  Not in the interest of the states and I'm not sure what their vote is for, unless they think they can reason with Haaland, which is an exercise in futility.

Next stop will be in May as we hear when the infrastructure bill will be delivered.  Somewhere between $3 to $5 trillion to replace the 530,000 federal vehicles with electric vehicles, 500,000 charging stations and subsidies for wind and solar that will make the head spin.  Oil, gas, coal and nuclear - under siege.  The banks are placing anti-cash hoarding language back into credit facilities, or lines of credit.  They are all in for the "Protecting America Economy from the Carbon Bubble Act of 2020"!  Risk will now be assessed, not by PDP  or PUDs or proven developed or proven under developed commercial production under leases and well development, it will be risk assessed by environmental and social risk.  An impossible factor too difficult to calculate.  

The U.S. is heading into a crises since oil and gas production is falling while demand is increasing with the country reopening.  It seems easy to assume that there is reasoning behind the madness as government comes for the energy sector and that is to curb movement.  It does sound like some kind of conspiracy theory, but as the cost of energy increases, which is clearly happening, how high can it go before it impact our lives.  Can we afford $10 a gallon, $2,000 a month on electricity and taxes so high that the government is taking more than we do. Okay, so maybe not that intense, but in 2 months, we see a government becoming closer and closer to being authoritarian.  I wouldn't have thought that possible, but as I'm writing this, a legitimately elected Republican Congresswoman in Iowa, who was seated and certified, may be replaced by her Democratic challenger by Nancy Pelosi, who has no interest in the will of the people, the Constitution or America itself.  

HR1 is heading the Senate, if it passes it will be the pinnacle under the new rules of the cancel culture, since it will be the "Cancelling of America".

[Gerry Maddoux + 3,627]

^

Beautiful summation of just how crazy this whole thing has become. 

It seems apparent that Mr. Biden, et al, actually want high oil prices--that would create animosity toward fossil fuels and make passage of all elements of the green new deal likely. 

Beware, however, of unintended consequences: the world is becoming increasingly dangerous at just the time that the U.S. is becoming less energy-secure!

[Symmetry + 109]

8 hours ago, Gerry Maddoux said:

 

It seems apparent that Mr. Biden, et al, actually want high oil prices--that would create animosity toward fossil fuels and make passage of all elements of the green new deal likely. 

Beware, however, of unintended consequences: the world is becoming increasingly dangerous at just the time that the U.S. is becoming less energy-secure!

 

High oil prices are not all bad.  While average Joe with a gas guzzler truck may not be happy with gas prices the oil producers benefit.  

It could be argued low oil prices will make US less energy secure as the shale oil players go broke. Have no fear, you can buy more from Canada if that occurs.

 

Edited March 15, 2021 by Symmetry

[ronwagn + 6,290]

The majority of voters will not like higher prices. Gasoline prices caused by Democrats will not fly with them. They should know that gun control and high gasoline prices will probably blow their chances at holding the House and possibly the Senate. Then there are is all the pork barrel spending they will be rolling out, the illegal aliens flooding in, etc. 

[Symmetry + 109]

2 minutes ago, ronwagn said:

The majority of voters will not like higher prices.

Nobody likes higher gas prices.  Many people will like higher oil prices, but I agree not the majority. 

I don't like going to the dentist but recognize the value.

[notsonice + 1,255]

remember the election of November 2012? No one gave a rats ass about $100 a barrel oil and $4 gas at the time. Obama got re-elected 332-206. GOP lost 8 seats, no one cared again. Oil and the price of gas was a non issue.

$5 gas might get people interest only if unemployment is over  6 or 7 percent in the US. $100 oil will be accompanied by no more COVID in the US and the Western World. No one will care about $100 oil if the economies of the US and Western World are with GDP growth of over 2 percent at the time oil hits $100. Only old ladies who pinch pennies are thinking $100 oil matters to anyone.

 

 

[0R0 + 6,251]

On 3/13/2021 at 7:06 PM, ceo_energemsier said:

The Federal "moratorium" on leases is for new leases and new drilling. But they also announced that they will "announce" in the summer, if a permanent ban would take effect.

 

 

 

US Officials: Report on Oil and Gas Sale Ban Due by Summer

The Biden administration says that it will deliver an interim report on its suspension of oil and gas sales from federal lands and waters by summer.

 

https://www.usnews.com/news/business/articles/2021-03-09/us-officials-report-on-oil-and-gas-sale-ban-due-by-summer

 

There is the question of whether the US Federal govt. actually owns any of that property in its diminished legal form as a defunct corporation. It might not have standing in court to challenge the unincorporated state taking control of the land till the federal government is reconstituted.. If the Q narrative is right, the Federal government outside of continuity of government operations of the military and FEMA, does not exist but by the momentum of belief fostered by the media and the alphabet soup agencies that they have the power they claim. 

[ronwagn + 6,290]

17 hours ago, notsonice said:

remember the election of November 2012? No one gave a rats ass about $100 a barrel oil and $4 gas at the time. Obama got re-elected 332-206. GOP lost 8 seats, no one cared again. Oil and the price of gas was a non issue.

$5 gas might get people interest only if unemployment is over  6 or 7 percent in the US. $100 oil will be accompanied by no more COVID in the US and the Western World. No one will care about $100 oil if the economies of the US and Western World are with GDP growth of over 2 percent at the time oil hits $100. Only old ladies who pinch pennies are thinking $100 oil matters to anyone.

 

 

My guesses are that real wages, with inflation, will be lower, unemployment will be higher, illegal immigration will be higher, backlash over gun control, election cheating, and many other issues will cause enough backlash to teach the Democrats a lesson. 

I don't think oil will average over $70 a barrel. Right now the gasoline stations are making a high margin of profit. Come summer, that will be cut drastically. Meanwhile Kroger is giving up to $1.00 a gallon discount to their shoppers. 

Or I could just be an eternal optimist. 

[ceo_energemsier + 1,818]

19 minutes ago, ronwagn said:

My guesses are that real wages, with inflation, will be lower, unemployment will be higher, illegal immigration will be higher, backlash over gun control, election cheating, and many other issues will cause enough backlash to teach the Democrats a lesson. 

I don't think oil will average over $70 a barrel. Right now the gasoline stations are making a high margin of profit. Come summer, that will be cut drastically. Meanwhile Kroger is giving up to $1.00 a gallon discount to their shoppers. 

Or I could just be an eternal optimist. 

Personally, I dont think the gas station owners have a high margin on fuel retail, they mostly make very high margins once the customers fet inside the gas station convenience store, that is where there margins and profits come from. Most of the gas station operators/owners have a margin of maybe 2-7cents/gal.

There is also a lag for the prices to be reflected at the gas pump, from the time the gas retailer puts in the order to the time their supplies get into their USTs and the billing for their batches of fuel. The prices @ the gas station maybe going up higher and higher till they end up reflecting the increased crude prices and the refinery rack prices etc.

The invasion of the country is growing everyday, most people have stopped calling them ILLEGALS and now just refer them to migrants. They are not migrants, they are illegals!!!! Just like there is no crisis, no drugs being hauled into the country by the ton and whatever else like there is/or has been no violence , looting, murders and mayhem and chaos by such groups over the summer and even now.

Take down border walls and border security physically and the laws that support those border security measures, let the country be over run by illegals  including gang members, cartels and cartel backed drug smugglers, but put walls and fences and NG in DC!!!

Leaves American citizens unprotected, take their rights to defend themselves away yet there is no issue with building walls and putting up fences in DC.

 

Crude and gas prices are going to keep going up, because of the geopolitical issues right now and it will only get worse, with the push for the GREED New Deal , costs of oil and gas will keep going up, federal ban on leasing and drilling , and HF.. list goes on.

 

 

[ronwagn + 6,290]

I have been following the difference between wholesale gasoline prices and retail prices for many years. It is now about double what it normally is. $1.20 versus 60 cents per gallon pumped. That does not include delivery to the retailer. This is just blatant overcharging. So, we save up to  a dollar per gallon at Kroger. 

My figures are rough, someone else probably has better ones and additional factors to consider. Gasoline stations are almost all self serve, which has changed the cost of doing business as has the convenience store approach versus the high service expected in the old days, especially in the company owned stations. 

[ceo_energemsier + 1,818]

Biden nominee Deb Haaland confirmed as secretary of the interior

https://www.foxnews.com/politics/biden-nominee-deb-haaland-confirmed-secretary-of-the-interior

 

 

 

I am guessing that the Republicans have no more spine left!!!!!!!

 

[ceo_energemsier + 1,818]

1 hour ago, ronwagn said:

I have been following the difference between wholesale gasoline prices and retail prices for many years. It is now about double what it normally is. $1.20 versus 60 cents per gallon pumped. That does not include delivery to the retailer. This is just blatant overcharging. So, we save up to  a dollar per gallon at Kroger. 

My figures are rough, someone else probably has better ones and additional factors to consider. Gasoline stations are almost all self serve, which has changed the cost of doing business as has the convenience store approach versus the high service expected in the old days, especially in the company owned stations. 

 

Shale’s Caution Means U.S. Oil Output Will Lag as Prices Jump

 

Bloomberg) -- Shale’s newfound prudence after last year’s crash is putting producers in the unusual situation of reducing oil output just as prices surge.

More focused than ever on keeping spending in check, shale drillers haven’t been boring new wells fast enough to keep up with output declines in older ones. So, next month, their combined production will edge lower by 47,000 barrels a day to about 7.46 million, according to the U.S. Energy Information Administration. That’s despite an oil price jump of more than 30% this year.

The impact of the coronavirus on energy consumption was so bad last year that several heavily indebted shale producers went under after years of being bankrolled by Wall Street. Now, producers don’t seem to be in a rush to start another boom, and their backers aren’t either. That’s good news for Saudi Arabia, which has sought to bring prices up without unleashing a new supply glut.

 

“We are still observing only about 50% of last year’s rig count activity,” EIA analyst Jozef Lieskovsky said by email. “With such a low rig count, even with the increased productivity, production declines in all regions are possible.”

The number of rigs drilling for oil in the U.S. started plunging when the pandemic hit, reaching just 172 in August, down from 683 late in March 2020, according to Baker Hughes data. They are now at little more than 300.

In theory, producers also have the option of fracking wells that have been drilled but left uncompleted, known as DUCs. But that wouldn’t help them conserve much capital because the process of blasting a mixture of water, chemicals and sand into the ground to unleash oil and gas from shale rock is the most expensive part of a well’s development. DUCs also require some work before they can be fracked if they’ve been lying idle for too long.

Output will be slightly lower in nearly all key shale regions except for the Permian Basin of West Texas and New Mexico, which is estimated to produce a meager 11,000 barrels a day more, the EIA said in its Drilling Productivity Report.

[ronwagn + 6,290]

2 hours ago, ceo_energemsier said:

Biden nominee Deb Haaland confirmed as secretary of the interior

https://www.foxnews.com/politics/biden-nominee-deb-haaland-confirmed-secretary-of-the-interior

 

 

 

I am guessing that the Republicans have no more spine left!!!!!!!

 

The RINOS never did, they just want to dump Trumpism and make personal money like the Democrats. The Democrats have plenty of spine. They even want to steal a House seat won by a Republican woman in a close contested race. 

[ceo_energemsier + 1,818]

3 hours ago, ronwagn said:

I have been following the difference between wholesale gasoline prices and retail prices for many years. It is now about double what it normally is. $1.20 versus 60 cents per gallon pumped. That does not include delivery to the retailer. This is just blatant overcharging. So, we save up to  a dollar per gallon at Kroger. 

My figures are rough, someone else probably has better ones and additional factors to consider. Gasoline stations are almost all self serve, which has changed the cost of doing business as has the convenience store approach versus the high service expected in the old days, especially in the company owned stations. 

I know a lot of independent gas station/convenience store owner/operators from the Mid-West, Rockies and SE, SW and USGC. Many years ago I worked with hundreds of them into forming a consortium as fuel buyers so they could get a better bargain buying fuels in larger volumes based on their local area/PADD volumes they moved. Several years after achieving that goal, I signed them up to supply them the fuels directly by getting processing contracts with various refineries in each region. It worked out beautifully for all involved.

The gas station/convenience store owners/operators maybe saving $$$ by the self serve and no other overheads and the automation and therefore add to their bottom line but their actual margins on fuel products, overall remains relatively slim, they get squeezed from all sides.

It is like back in the day, when flying was expensive and a rewarding experience and travelers would treat it as such, now you see people traveling in their PJ's!!!!  the airlines have slimmed down to the bare bones services.

[Ward Smith + 6,615]

4 hours ago, ceo_energemsier said:

GREED New Deal

I'm stealing this 😌