Biden resumes oil and gas leasing on public land

To help deflect criticism, the Biden administration is increasing the royalties that companies must pay for this drilling from 12.5% to 18.75% -- in a first of its kind increase in more than a century.

"We have heard a lot of rhetoric from President Biden and his administration about the need to take action on climate," he said in a statement. "But not only is the administration not doing everything it could -- it is not really doing anything. Climate action was a pillar of President Biden's campaign, and his promises on this existential issue were a major reason the public elected him."

Biden isn’t responsible for high gas prices. No, that would be impossible. 

Then who’s responsible? 

Putin is responsible. 

A recent ABC News/Ipsos poll found Americans are more likely to place a "great deal" or a "good amount" of the blame for the price increases on Democratic Party policies (52%) and Biden (51%) than on Republican Party policies (33%) and former President Donald Trump (24%). A strong majority of Americans (68%) also disapproves of the way Biden is handling gas prices.

Half of Americans report Joe Biden’s gas prices are causing financial hardship

Let’s keep sending billions of tax dollars to Ukraine 

Amazing how the modern day democrat supports militarism and big pharma (vaccines R us). It is like the chemicals within their bodies have gone berserk for them to have such thoughts. I liken it to what happened to the rabid Nazis in the German population in the 1930s.

They are writing a dark page in American history and thermonuclear war seems to be on the horizon. Most of us will not survive it. 

Nearly all of the war mongering neocons from the Bush era have found a new home with the left. 

“This is pure climate denial. While the Biden administration talks a good talk on climate action, the reality is, they’re in bed with the oil and gas industry.” – WildEarth Guardians

Democrats are now saying this move is to help lower gas prices 

They just spent 2 years telling us how Biden’s policies don’t have anything to do with the soaring gas prices 

The best way to bring gas prices down and curb our allies' dependence on Russian energy is to increase production in the United States.

But the Biden administration is still dealing in half-measures. It's time to elect politicians that will unleash American energy.

Only 20% of the land available for leases has been made available. Offshore and Alaska lands are not available. These are the most promising locations for potential oil.

It is all an obvious stunt. 

Same with ethanol increases.

Sort of like going after rural gun dealers because of inner city shootings.

Sort of like defunding police and wonder why crime increases.

Sort of like giving little to no bail to shooters and wonder why shootings are up.

Sort of like printing and spending money like water and wondering why inflation is so bad.

Sort of like opening the southern border and wonder why drug overdoses are up, besides handing out drug kits.

..................

Only 20% of the land available for leases has been made available. Offshore and Alaska lands are not available. These are the most promising locations for potential oil.

It is all an obvious stunt. 

Same with ethanol increases.

Sort of like going after rural gun dealers because of inner city shootings.

Sort of like defunding police and wonder why crime increases.

Sort of like giving little to no bail to shooters and wonder why shootings are up.

Sort of like printing and spending money like water and wondering why inflation is so bad.

Sort of like opening the southern border and wonder why drug overdoses are up, besides handing out drug kits.

..................

Only 20% of the land available for leases has been made available. Offshore and Alaska lands are not available. These are the most promising locations for potential oil.

It is all an obvious stunt. 

Same with ethanol increases.

Sort of like going after rural gun dealers because of inner city shootings.

Sort of like defunding police and wonder why crime increases.

Sort of like giving little to no bail to shooters and wonder why shootings are up.

Sort of like printing and spending money like water and wondering why inflation is so bad.

Sort of like opening the southern border and wonder why drug overdoses are up, besides handing out drug kits.

..................

From an article the IER put out in May of 2020:

Impact of Biden’s Bans on Fracking and Oil Production on Federal Lands and Offshore

At his debate with Bernie Sanders on March 15, 2020, Democratic presidential candidate Joe Biden said he would prevent oil companies from drilling as part of his effort to combat climate change. At the CNN debate, he said “No more drilling on federal lands. No more drilling, including offshore. No ability for the oil industry to continue to drill, period. Ends.” He also said there would be no “new fracking” and “not another coal plant will be built” under his administration. The U.S. Chamber of Commerce did two studies that address these issues: a ban on hydraulic fracturing and a ban on drilling on federal lands and offshore areas. In both cases, the effects are devastating, with huge losses to the economy, higher energy prices, and lower employment.

Biden’s policies would produce similar effects on the oil industry as the coronavirus pandemic and the Saudi-Russia price war, only in Biden’s case, demand for oil products would still be strong and the United States would become dependent on foreign oil again, making Saudi Arabia and Russia jubilant, but increasing U.S. energy prices and putting our national security in danger.

Impact of a Ban on Fracking

The U.S. Chamber of Commerce’s Global Energy Institute found that a fracking ban would double gasoline prices as oil prices spike to $130 per barrel, raise the average cost of living by $5,661 per person, and reduce employment by 19 million people over a five-year period. Prohibiting fracking would also quadruple electricity prices, reduce Gross Domestic Product (GDP) by $7.1 trillion, and increase natural gas prices by 324 percent from 2021 to 2025, causing household energy bills to more than quadruple. This would be the equivalent of a major recession.

A ban on fracking would effectively represent a ban on U.S. natural-gas extraction, given that 95 percent of natural-gas production involves hydraulic fracturing. Natural gas is not only used for electricity generation where environmentalists want it replaced with renewable energy, but it is also used in cooking and heating homes and other buildings, in factories for manufacturing and processing, and in agriculture to pump water. In 2019, all renewables (hydro, solar, wind, biomass, and geothermal) represented 11.4 percent of the nation’s energy supply. Wind and solar combined represented just 3.8 percent of that supply. Politicians’ expectation that these sources will replace fossil fuels is bewildering. Yet, for some reason, some Americans want to believe them. Perhaps Michael Moore’s new movie, Planet of the Humans, will help convince some of the folly of so-called “green energy” sources.

Impact of a Ban on Oil Drilling on Federal lands and Offshore

If a ban was imposed on energy production from federal lands and waters, the United States would lose billions in royalties and hundreds of thousands of jobs, according to another report by the U.S. Chamber of Commerce. According to the report, federal and state governments would lose over $11.3 billion in annual royalties, 24 percent of the nation’s fossil fuel production would be imperiled, and 380,300 jobs-about one-third of which are direct jobs (101,600) and the remainder both indirect (75,300) and induced (203,400) jobs would be lost. If a ban is enacted immediately, an estimated $72.3 billion in GDP would be lost. The ban would also remove 42 percent (379 million tons) of coal from the nation’s energy supply, which would cause electricity rates to spike because there is not enough non-coal capacity to make up for the shortfall.
If the ban is on just new drilling leases, leaving existing leases in place, it would reduce revenues by $6 billion nationally over the next 15 years and eliminate 270,000 U.S. jobs.

Conclusion

Biden’s ban on fracking and his ban on oil drilling on federal lands and offshore areas would have devastating results on the economy, jobs, and revenues, and energy prices would skyrocket. Several states would be impacted severely and directly—Texas, New Mexico, Pennsylvania, Colorado, and Wyoming. Americans in all states need to take note of these impacts and think carefully about what these policies would mean for their families, their jobs, and their communities.

But there is also an underlying issue with the new ESG issue as well.  For example:

“Underinvestment because of ESG is one of the confluence of issues causing the price to increase,” Jack McIntyre, a portfolio manager at Brandywine Global, said.

Interesting take on it:

https://www.forbes.com/sites/judeclemente/2022/02/13/esg-and-the-dangerous-structural-increase-in-the-price-of-oil/?sh=322e192757b0

Pretty amazing how correct some of the predictions have been on these issues and the effects it would have on oil prices.  Pandemic, Ukraine, fracking, leases, Keystone, EOs, ESG, lack of development, etc.  All of this is very complex -- but amazing how some of these analysts have been pretty spot on.  Not with just the issue and the result in general -- but the exact numbers involved themselves.

I say all of that to say this:  Been making a killing so far with some of this.  NRGU is now below $600.  It had been over $775.  Maybe today is an extreme case.  But it may be time to start moving out.  But it could be time to just keep adding on.  Since Jan it has come up from $180 or so. 

Who knows?  Should have added more at $540 this morning -- now back over $600.  Very tricky situation now.

Word is they are talking to the Saudi's to help with issues. Yes, let's go to a country with terrible human rights and murderers than keep it at home and be energy independent. 

Yep.  Absolute joke.

NRGU

633 +54.64(+9.45%)

On the move again

Maybe they think it’s better for the climate if the Saudis do it without any regulations?