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Replies: 18
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CU Medallion [73569]
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All-TigerNet [12570]
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Re: Uhhh, Biden opens up leases for gas and oil
Apr 16, 2022, 9:23 AM
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I approve this action, but this is simply a lease sale and it involves only 144K acres, 80% less than what was being evaluated for leasing.
Unless the bureaucratic hurdles are lessened to actually allow the drilling to begin, this is nothing more than a land sale for now. The energy companies will probably buy these leases, but may wait until there is a friendlier Administration in office that may lessen the time and legal costs to actually explore for oil and extract it.
I again approve this action, but this action alone is just a political move which I doubt will work.Biden has lost much of moderate and conservative America and this move will not make him more popular with the progressives.
It is interesting to see Joe previously scold the energy companies for too much oil production in the U.S. and now scold them for not producing enough. The bureaucratic hurdles are the chief problem. It is an incredibly slow and legally expensive process to actually drill. Furthermore, all wells don't produce.
Message was edited by: rons1®
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110%er [7086]
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Re: Uhhh, Biden opens up oil & gas leases - - some more info
Apr 16, 2022, 9:21 PM
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To expand on your post rons1®, below are some excerpts from an AP article which has been posted by NPR (National Public Radio ... not National Petroleum Refiners) ... with my comments in (parentheses).
The Interior Department on Friday said it’s moving forward with the first onshore sales of public oil and natural gas drilling leases under President Joe Biden. (Sounds good, doesn't it?)
Biden suspended new leasing just a week after taking office in January 2021. A federal judge in Louisiana ordered the sales to resume, saying Interior officials had offered no "rational explanation" for canceling them. (Ooops, looks like Biden is belatedly trying to make up for cancelling leases in January 2021. If the drilling hadn't been stopped 1.25 years ago, then some new energy would be here and some imminent additional energy would be coming soon. But starting to drill in late Q2-2022 won't help derail inflation for another year.)
The royalty rate for new leases will increase to 18.75% from 12.5%. That's a 50% jump and marks the first increase to royalties for the federal government since they were imposed in the 1920s. (This increase in royalties discourages developing the more marginal properties ... which in turn reduces the amount of 'new energy' which might otherwise be produced.)
American Petroleum Institute Vice President Frank Macchiarola said officials had removed some of the most significant parcels that companies wanted to drill while adding "new barriers" that would discourage companies from investing in drilling on public lands.
SUMMARY: This looks like political eye candy, smells like political eye candy, and quacks like political eye candy. We'll see how effectively the MSM twists this all to make it look like Biden is 'moving fast' to address the energy aspect of inflation.
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Associate AD [839]
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The royalty increase
Apr 16, 2022, 9:34 PM
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brings it more in line with state and private land/mineral rights owners. It’s clearly the right thing to do.
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110%er [7086]
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Re: The royalty increase
Apr 16, 2022, 11:27 PM
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It's not 'clearly the right thing to do' if the objective is to help alleviate high energy prices via an increase in energy production. There isn't the same priority to increase mineral production; therefore the higher royalty rates for mineral production makes more sense than doing the same thing with royalties of energy production.
Please remind me ... what is the near term priority for the economy? More limestone production? More trona ore production? Or more oil / gas?
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Associate AD [839]
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I didn’t understand at first
Apr 18, 2022, 6:21 AM
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Mineral rights include oil and gas and coal. I said landowners/rights owners because many times a deed doesn’t include the mineral rights because they were sold separately or retained by a previous landowner.
Private individuals and states receive royalties around 20% for oil and gas. The federal govt should charge the same.
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110%er [7086]
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Re: I didn’t understand at first
Apr 18, 2022, 8:08 AM
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I believe you and understand (and appreciate) your 'charge the same royalties' argument.
However, for a special stimulus to the economy, and with the banners flapping that Biden Admin is doing its part to increase oil & gas production by opening up more Federal lands for leasing, then why does Biden Admin quietly impart a disincentive to generate the O & G that they suggest is needed to help to increase supply ... and subsequently lower cost?
Sorry, but the Biden Admin's stated policy goals vs. actual policy practices contradict each other to a meaningful degree.
The Biden Admin thanks you for your sophisticated spin, but this time it just ain't working.
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Associate AD [839]
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Re: I didn’t understand at first
Apr 18, 2022, 9:42 PM
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I understand that the higher royalty is not a disincentive. It shaves a little off record profits. At these prices you don’t slow down production because you suddenly have to pay similar royalties for federal land that you do for state and private. That would be pretty stupid.
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110%er [7086]
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Re: I didn’t understand at first
Apr 19, 2022, 1:05 PM
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I'll quit the back-and-forth after this post.
Stimulus = action to encourage something to take place faster than without stimulus.
Opposite of stimulus = action that discourages something from taking place faster.
Raising royalty rates: This action increases the cost of doing business; therefore it is the opposite of stimulus.
You know this is true.
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Associate AD [839]
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You probably want to think that through a little more
Apr 19, 2022, 9:16 PM
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Drive around the Southeast and look at all the timber that is being cut because of record prices. Each company and landowner is going to pay more taxes. Many individuals will have to pay the net investment income tax penalty. If they deferred some cutting to next year to spread the capital gains out, they could avoid or reduce the penalty. Would anyone actually do that though?
Oil and gas aren’t that different. You produce as much as you can while prices are high. The royalties on federal land were previously much lower than those for private or state lands, yet there was plenty of production from state and private land.
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All-TigerNet [10867]
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s***tlibs will defend it no doubt.***
Apr 16, 2022, 9:36 AM
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All-In [34535]
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bet 99% of them are worthless***
Apr 16, 2022, 2:50 PM
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Heisman Winner [111420]
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look at Xtiger having his cake and eating it too***
Apr 16, 2022, 2:54 PM
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All-In [34535]
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good job bro***
Apr 16, 2022, 8:25 PM
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CU Medallion [50635]
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without reading it
Apr 16, 2022, 8:59 PM
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tell me where permitting and pipelining come in
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All-TigerNet [10134]
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Re: Uhhh, Biden opens up leases for gas and oil
Apr 17, 2022, 12:42 AM
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Don’t answer ask questions they don’t want to know the answer to. They are clueless, blind and oblivious to what flies on in the real world. One day they will be “Woke” to the harsh realizations to the world instead of these fairy tales they spin off each day.
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110%er [7086]
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Re Biden opens up leases: thread is fascinating & terrifying
Apr 19, 2022, 10:42 PM
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It both fascinates and scares me how immovable many people, and more so with liberals, despite being confronted with irrefutable fact.
When nailed down, they pivot to related (but different) topic, usually with the intent to confuse things by changing a part of the topic which renders the original 'kill shot' argument in an attempt to distance themselves from the irrefutable fact.
The other common tactic is to never never never give in, as if by repeating something wrong often enough it becomes 'right.'
In this post's string, the pattern of deflection in a desperate attempt to not admit to being wrong is displayed more than once.
And this behavior comes from what are very likely people with legitimate cognitive competency.
Fascinating, but also terrifying, about what has become of America.
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110%er [5648]
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Re: Uhhh, Biden opens up leases for gas and oil
Apr 18, 2022, 10:22 AM
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The libs are so stinking stupid. They believe every ounce of BS fed to them. If they would only pay attention over the long haul (not that long, really) they would figure out 80% of the crap they believe turns out to be a lie.
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Orange Blooded [4008]
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Re: Uhhh, Biden opens up leases for gas and oil
Apr 20, 2022, 9:42 AM
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You mean like Mexico paying for a big, beautiful wall? ??
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