re: Biden opening up land for oil production

Los Alamitos CA

Description

The move biden made on Friday to "open up drilling" is nothing more than a worthless political stunt and will do NOTHING to increase oil production and lower the cost at the pump. Here's why: As the WH keeps flaunting, there are currently 9,000 approved leases to drill on. He's opened up 225 square mile in the west (an area already highly explored) and he's increased the lease royalty 50%. These leases are not guaranteed production, they are all unknown prospects with respect to production. Some may produce oil, some may not. The success rate for wildcat wells is around 11% (osti.gov). That means only 1 out of 10 drill rigs on these leases will strike oil. The success rate in these new leases will be much lower. Now, not only do the oil companies face these very low success rates, but they also have to go through the massive permitting process to start drilling. Just because biden and psaki say the oil companies hold the leases doesn't mean they can just jump on them and start drilling - Oh no! They have to get approval from about a dozen (if not more) federal and local agencies before they can drill. I'll bet a paycheck bidens administration (behind the scenes) has told these alphabet agencies to delay these permits as long as possible. So combine that with biden declaring war on fossil fuels and were lucky crude isn't $300/bbl. As a smart businessman, I would never invest one penny into an industry unless I knew the return was going to be there. The democrats just don't get that concept. The democrats are doing NOTHING to help the American public!!!