But it’s not as simple as Biden made it seem, because there are some steps before companies begin production.Ĭompanies have to contract rigs to drill the wells, and build a sufficient inventory of permits before rigs are contracted, said Jennifer Pett, a spokesperson for the Independent Petroleum Association of America, a trade group that represents oil and natural gas producers. The president suggested the onus is on the industry to start drilling. Companies don’t have to immediately begin drilling as their leases last 10 years and can be extended beyond that.įrom a federal regulatory standpoint, once a permit is approved, industry can proceed. Those permits include those issued under Biden and those still active from Trump’s administration and potentially before, said Josh Axelrod, of the National Resources Defense Council. At the end of 2021, there were 9,173 approved and available permits to drill on federal and Indian lands. has more than 24 million acres under lease to oil and gas companies onshore - close to half are not producing.īefore drilling can occur, the lease holder has to get a federal permit. The status of drilling permits during Biden’s administration More: Gas prices are high and up another 7 cents nationwide. The industry could move forward with the permits that it has that are currently unused and could ramp up domestic oil production to replace Russian oil, but these moves take time. Is Biden sharing all the facts here? He’s right on the numbers of permits but what that means is a little more complicated than his statement suggests. They have 9,000 to drill onshore that are already approved."īiden said that the companies are not using these permits to drill. They could be drilling right now, yesterday, last week, last year. And of the remaining 10% that occurs on federal land, the oil and gas industry has millions of acres leased," Biden said. "In the United States, 90% of onshore oil production takes place on land that isn’t owned by the federal government.
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