Make no mistake about it. Biden caused this on day one.
Now, we drill “super pads”. An 8 Well pad, in cases, can produce 16,000 BO 80,000 mcf and 24,000 barrels of produced water, or more, a day at flush production (the production goes down hyperbolically from there).
Due to Biden’s initiatives, in order for us to lay a larger line in our existing Right of Way that was approved 15 years ago, I have to have a archeological study, ecological study, and environmental study to submit to the govt (who hates us). There are only a few companies that can do these studies, and they’re backed up for years.
I won't argue one bit that Biden's first day initiatives were the precursor for today's oil issues, but our experience concerning the government's processes differs dramatically.
Those archeological and other environmental studies have been required since way before Biden was in office, and the govt land management agencies don't "hate" you, in a general sense.
Just because they have a legal process (which again I don't approve of), doesn't mean they're against Oil and Gas. Maybe NMOCD, but I doubt that too. On Federally managed land, the Onshore Orders have been around for many years and they're being integrated into the CFRs, and necessitate by court decisions a lot of those restrictions that you (and I) despise. Don't shoot the messenger, kind of thing.
As an aside, is an 8 well pad considered huge in the Permian? I know of 60+ gas well pads in Wyoming but have a lot more experience with gas than oil.
Forbes has a recent article on the EPA going after and getting themselves involved in the Texas, New Mexico Permian Basin over ozone issues.
TInman, while the environmental applications and related stuff have been in place, the regulation of them has fallen to a different administration.
Where common sense may have glimmered through in such applications before Biden, they are stonewalled now.
But that's just the logistics end of exploration, production and drilling, as well as transportation (pipelines).
A much broader stonewall has hit the oil and gas industry...
Taxes.Trump had tax incentives in place to encourage oil and gas production. Investors put money in because even at lower oil prices, a workable and acceptable return on their money attracted investors.
Now, with the tax incentives not only cancelled, but tax burdens increased, investors can easily make higher returns in other market plays. Getting investors into oil and gas now, even with record high oil prices is like pulling hen's teeth.
Even in high production areas in Texas, where federal lands don't figure in, the EPA, interstate pipelines regulated by the DOT, and the Tax Man, exploration and production isn't seeing the growth you'd expect at all. Not even close.
Biden IS responsible. No doubt.
