unused federal oil leases

Is Biden sharing all the facts here? However, the unused drilling leases represent a fraction of the active permits, many of which are being used by the private sector to produce oil and gas daily, industry groups said. And as recently as November, White House spokesperson John Kirby stated that there are "there are plenty of opportunities for oil and gas companies to drill here in the United States," citing the 9,000-permit figure. No, the U.S. did not end its domestic oil production. The U.S. has more than 24 million acres under lease to oil and gas companies onshore close to half are not producing. ", "Ron DeSantis voted to cut $473 billion from Medicare. The BLM, a subagency of the Department of the Interior (DOI), blamed the revision on a Trump-era technical change that it hadn't properly accounted for. They could be drilling right now, yesterday, last week, last year. The agency explained: "This number has been updated to account for a reporting discrepancy resulting from a transition to a new database in mid-2020. However, once the permit is approved, drilling doesnt start overnight. Please read our Terms & Conditions, Cookies Policy and Privacy Policy before using the site. [Follow me on Twitter at @EnergyAbsurdity] During Monday's latest gaslighting exercise the White House likes to refer to as a 'press briefing,' spokesperson John Kirby rolled out the handy '9,000 unused permits' talking poi This is exactly what the worlds leading producer of natural gas and oil should do, especially in times of turbulence. "Its simply not true that my administration or policies are holding back domestic energy production," Biden said March 8 in a speech announcing a U.S. ban on Russian oil imports. some 40% of the mineral acreage leased by companies goes unused . Government policies can either discourage or encourage oil producers to take the risk of investing billions of dollars, plus considerable time and effort, to find out whether or not the lands they lease are viable sources of oil. This is where were parked, right here on the edge of this big frack pit.. Oilfield Electrification Technology Conference. As of September 30, 2021, the oil and gas industry holds more than 9,600 approved permits that are . . forward with a plan to lock up even more of our state's land in unused oil and gas leases. AP Photo/Matthew Brown, File. FOSSIL FUEL PROFITS ARE VITAL FOR GREEN ENERGY PROJECTS DEMS ROUTINELY TOUT. , Fossil Fuels U.S. Energy Information Administration, U.S field production of Crude Oil, Center for Biological Diversity, New Data: Bidens First Year Drilling Permitting Stomps Trumps By 34%, Jan. 21, 2022, Western Energy Alliance, Responding to the White House Blame Game on Leases, March 4, 2022, Washington Post, Biden outpaces Trump in issuing drilling permits on public lands, Jan. 27, 2022, CNN, More oil supply could stop massive price spikes. 54,657 authorized oil and gas leases. Companies 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. PolitiFact: Biden right oil industry has over 9,000 permits to drill. And any company that wanted to start drilling on those 9,000 federal leases would face the same problems. Biden's Interior Department quietly updated its list of unused permits to reflect a much lower figure: 6,600, E&E News reported Monday. 801 3rd St. S This material may not be published, broadcast, rewritten, or redistributed. Oil production on federal lands fell to 12.28 million barrels per day in November, the latest month with data. With oil at $120 or more, drilling there is wildly profitable.". The Biden administration quietly updated a federal database that shows how many unused oil and gas drilling permits that it has approved, reducing the number by more than 2,000. On Feb. 27, 2023, a reader alerted us that the federal agency had published an updated number of the approved and available permits to drill the new total was 27% smaller, 6,653 permits. Before drilling can occur, the lease holder has to get a federal permit. Quotes displayed in real-time or delayed by at least 15 minutes. If . Your donation today powers the independent journalism that you rely on. Thousands of unused permits are not uncommon in any presidential administration. Halting new federal mineral leases will reduce oil and gas investment by hundreds of millions of dollars in Colorado and . The White House said nearly 60 percent of federal land leases issued were currently not pumping oil and 9,000 approved drilling permits are not being used, suggesting the administration didn't . ", Sen. Kyrsten Sinema "voted with the president 93% of the time. Meanwhile, its been 242 days since the Department of the Interior allowed the five-year offshore leasing program to expire, and the administration held just one quarterly lease sale in 2022 after not holding any in 2021, as required by law. Wednesday's Energy Absurdity of the Day: Is it '9,000 Unused Leases' or '9,000 Unused Permits?' The White House Doesn't Seem to Know. St. Petersburg, FL The EIN for the organization is 59-1630423. , But it does import some of its oil from Russia, The U.S. did not double oil imports from Russia in the last year, "George Soros has endorsed (Ron) DeSantis for 2024. 2023 FOX News Network, LLC. Biden said the oil industry has 9,000 permits to drill now. But its not as simple as Biden made it seem, because there are some steps before companies begin production. The Biden administration quietly updated a federal database showing how many unused oil and gas drilling permits it has approved, reducing the number by more than 2,000.. ", While it was already established that this claim is misleading, new reporting reveals that the underlying number isnt even accurate. From a federal regulatory standpoint, once a permit is approved, industry can proceed. The sand and water necessary for fracking are hard to come by too. re: 9000 unused oil leases. The update we have now is what we are able to provide.". Many of the drilling permits held by industry and 60 percent of the acreage leased to oil producers sits unused, she said. 25). Biden claimed 9,000 oil drilling permits are unused. There is actually an incentive for the companies not to develop these resources because for publicly traded companies, these reserves get reported and influence market valuation, Daigle said. . The U.S. has more than 24 million acres under lease to oil and gas companies onshore close to half are not producing. -1.64 -0.69%. "Right now, the oil and gas industry is sitting on more than 12 million acres of non-producing Federal land with 9,000 unused but approved permits for drilling," the White House said in an April . Patrick Cohorn, operations manager at a family-owned energy company called Henry Resources, headquartered in Midland, Texas, drove me out to a stretch of land just north of the town of Rankin. American Petroleum Institue February 27, 2023. At issue in particular was the administration's 60-day pause on new federal oil and gas leases, which several senators mischaracterized as a "ban". During Bidens first year in office, the U.S. produced an average of about 11 million barrels of crude oil per day compared to Trumps 9 million barrels per day in his first year. And wells that have been drilled need to be maintained. The change suggests that President Joe Biden and administration officials had overstated the extent to which oil and gas companies have neglected producing on approved permits amid the global energy crisis last year. District of Columbia The Biden administration has canceled one of the most high-profile oil and gas lease opportunities pending before the Interior Department. "Companies sometimes hold leases as a bit of a mind game with their competitors, or even just because they didnt properly assess the production potential prior to leasing due to lack of data or that sort of thing. Attorneys, and the ballot theft immediately ended. It is republished here with permission. Douglas Holtz-Eakin, an economist and president of the American Action Forum, a center-right think tank, said firms are trying to assess the durability of the global rebound. "Companies sometimes hold leases as a bit of a mind game with their competitors, or even just because they didnt properly assess the production potential prior to leasing due to lack of data or that sort of thing. March 8, 2022 There are 9,000 unused oil and gas leases on Federal lands that the companies have not touched. Biden said that companies pumped more oil in the U.S. during his first year in office than during his predecessors first year and that we were on track for record oil production next year. Here is the average price in each state. In other words, 9,000 chances to increase the supply of oil and gas and drive down prices. USd/gal. Bidens number is correct: There are 9,137 approved permits to drill on federal and Indian land, and the oil industry could use those permits and drill. ", "They are under pressure from the financial community to pay more dividends, to do more share buybacks instead of the proverbial 'drill, baby, drill,' which is the way they would have done things 10 years ago. When a company acquires a lease, it makes a significant financial investment at the beginning of the lease in the form of a non-refundable bonus bid and pays additional rent until and unless it begins producing. The department, which manages oil and gas drilling on federal land, blamed the change on a "reporting discrepancy.". Biden has a point that the U.S. produced more during his first year than Trumps first year. 5 relinquished oil and gas leases. "There are 9,000 unused approved drilling permits," former White House Press Secretary Jen Psaki told reporters last March. Published under: Corporate strategy has fundamentally changed.". The number of "approved oil leases" (presumably Federal mineral leases) is not an answer to that question. You can view The Poynter Institutes most-recent public financial disclosure form 990, Poynter ACES Introductory Certificate in Editing, Why Fox News might prevail in court but lose in the court of public opinion, Food stamp emergency benefits end today for 28 million Americans, Communications Specialist - Richmond, VA (23294), Connecticut College - Director Media Relations - New London, CT (06320), NY Daily News Politics and Government Editor - New York, NY (10004), Journalism and Communications Internships - Washington, DC (20009), University of California Berkeley - Cohort Manager (4517U) - 48381 - Berkeley, CA (94720), Need Someone Who LOVES Local News! ", We asked federal officials for an updated figure for 2021, and Interior Department spokesperson Melissa Schwartz said the agency has "no way to capture that since the discrepancy was found at the end of last year. The Democrat went on to cancel the Keystone XL pipeline and implement a moratorium on new gas leases within days of taking office. But its not as simple as Biden made it seem, because there are some steps before companies begin production. OScannlain is a graduate of the College of the Holy Cross and Notre Dame Law School. At the end of 2021, there were 9,173 approved and available permits to drill on federal and Indian lands. And is it Joe Bidens fault? Florida Senate Bill 2A does not provide "immediate relief" to homeowners dealing with high property insurance rates and "will force some constituents to pay up to 20% more. At the end of 2021, there were 9,173 approved and available permits to drill on federal and Indian lands. It has become a line the White House pivots to when pressed to explain why it isnt doing more to support American oil and gas production with soaring demand putting upward pressure on prices and with much of Europe at the mercy of its top energy provider, Russia. In the 2018 Florida governor's race "votes were being stolen by the corrupt election process in Broward. They exist. They have 9,000 to drill onshore that are already approved. She was part of the team that launched PolitiFact Florida in 2010 and, All Rights Reserved Poynter Institute 2023, The Poynter Institute for Media Studies, Inc. is a non-profit 501(c)3. API President and CEO Mike Sommers, in an op-ed on Fortune.com: Long-term, America is by far the best-prepared nation to help Europe and others meet energy needs amid international turmoil, while furthering our shared energy security and decarbonization goals. I stopped his Election from being stolen. [9] As a result, the moratorium on new leases will not impact the production of oil and gas in the short term as drilling will likely . It suggests American producers have been motivated by a desire to manipulate the market during the current crisis in Europe. And is it Joe Bidens fault? The time for helping Ukraine with American energy was months ago. Companies 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. ", Biden said that the companies are not using these permits to drill. The moratorium will extend the duration of the . "Theyre not drilling. Before drilling can occur, the lease holder has to get a federal permit. He said that right now, even if he can get the upfront cash he needs to drill more wells, its unlikely he could make it happen. ", "(Ron) DeSantis' bill would remove: background checks, instruction, training and oversight. "Sometimes there might not really even be producible oil and gas on a lease," Daigle said. Prior to that, he was an attorney for Chevron, DLA Piper LLP, and the U.S. Senate. Their University Retaliated Against Them. Legal Statement. Production peaked at 13 million barrels a day under the Trump administration. Theres a lot happening in the world. "So it simply wasnt profitable to drill with oil below $70. Companies dont have to immediately begin drilling as their leases last 10 years and can be extended beyond that. Biden said the oil industry has "9,000 permits to drill now. U.S. President Joe Biden wants oil drillers to pay penalties when federal leases go unused in an effort to prod the industry into pumping . At the same time, this is a really profitable business, especially with West Texas Intermediate trading at close to $100 a barrel. Our only agenda is to publish the truth so you can be an informed participant in democracy. Back in March, as Russias invasion of Ukraine was sending the price of oil sky-high, President Joe Biden noted that the oil and natural gas industry has 9,000 permits to drill that it isnt using. They have 9,000 permits to drill now. Biden routinely responded to that charge by accusing oil and gas companies of "sitting on nearly 9,000 unused but approved permits for production on federal lands," a talking point that is now debunked. A shale well, for example, could cost about $7 million to drill. The president suggested the onus is on the industry to start drilling. Photo of electric charging station powered by diesel generator is emblematic of the electric vehicle movement. March 2, 2021, PolitiFact, No, the U.S. did not end its domestic oil production. "Despite the administrations inaccurate and misleading numbers, the reality is that the U.S. natural gas and oil industry is confronting the global energy crisis by continuing to work to meet the energy needs of U.S. consumers and our allies abroad," Frank Macchiarola, the American Petroleum Institute's senior vice president of policy, economics and regulatory affairs, told Fox News Digital. , The U.S. has more than 24 million acres under lease to oil and gas companies onshore close to half are not producing. Experts also suggested that drilling domestically is more costly than drilling overseas, which could further deter oil companies in the U.S. from upping production. Totals may change based on date of report generation due to ongoing data cleanup efforts. 996 canceled oil and gas leases. Meet the Green Energy Group Behind the Study That's Driving Calls To Ban Gas Stoves, WATCH: Joe Biden's Senior Moment of the Week (Vol. The Biden campaign's crusade against fossil fuelswhich helped the Democrat appeal to young liberal votershas made many U.S. oil companies wary of investing in new drilling operations given the long-term political risk, the Washington Post reported last year. Companies dont have to immediately begin drilling as their leases last 10 years and can be extended beyond that. Now, the oil industry is sitting on a remarkable 9,173 approved, but unused, federal lands drilling permits. Biden's Interior Department quietly updated its list of unused permits to reflect a much lower figure: 6,600, E&E News reported Monday.The department, which manages oil and gas drilling on federal . Those guys are tripping in and out to go in and try to latch on to that ESP and try to pull it out, Cohorn said. Brent crude hit $139 per barrel on March 7, and some traders are even betting that oil will reach $200 per barrel by the end of the month. "Producers also have to put a drilling plan together, secure rights of way and work with state and private landowners," Pett said. "Families cant afford that companies sit on their hands. Rifles were involved in 297 deaths in the U.S. in 2022 and constipation killed 2,167., Drinking or using tap water treated with chlorine is dangerous because chlorine is a poison., Joe Biden described America as the foothills of the Himalayas with Xi Jinping., Kid Rock tweeted, Some people wouldnt recognize tyranny if it slapped a mask on their face, made them stand 6 feet apart, and forced them to take a vaccine for a virus with a 99.8% survival rate., The train that derailed in Ohio was carrying over 300,000 gallons of a chemical that was banned in 1974.. Mutual Fund and ETF data provided by Refinitiv Lipper. DeSantis first took office. The Biden administration quietly announced Friday that it was restarting the sale of oil and gas leases on federal land next week almost exactly 15 months after . Biden Administration There are more than 9,000 permits to drill oil on federal lands, as President Biden . Oil production on federal lands fell to 12.28 million barrels per day in November, the latest month with data. Experts also suggested that drilling domestically is more costly than drilling overseas, which could further deter oil companies in the U.S. from upping production. Then, an electrical submersible pump, or ESP, was sucked down into the well. That's true, but all work can't begin 'right now'. The Bureau of Land Management, which oversees nearly 250 million acres of federal lands, altered its estimate for the current number of approved but unused applications for . In total, the oil industry now holds leases to more than 25 million acres of public lands . So, I took a trip out to ground zero for domestic oil and gas production Texas Permian Basin to hopefully bring some back. Now is the time for the administration to fully get behind American oil and natural gas. Thousands of unused permits are not uncommon in any presidential administration. Video shows President Joe Biden recalling an alien encounter. All rights reserved. Kevin OScannlain is APIs vice president of Upstream Policy. Those permits include those issued under Biden and those still active from Trumps administration and potentially before, said Josh Axelrod, of the National Resources Defense Council. Revenues are split between the state where the drilling occurs and the U.S. Treasury. Everything in yellow is acreage that we own and operate, he told me. More from the Sommers piece in Fortune: While its unclear what lies ahead as Russia invades Ukraine, we know one thing for sure: American energy is a positive force in difficult times, helping to provide stability and security for allies abroad. For just $5/month, you can help sustain Marketplace so we can keep reporting on the things that matter to you. 2023 World Oil, 2023 Gulf Publishing Company LLC. Fox Business spoke with energy industry leaders and Sen. Dan Sullivan (R-Alaska) about the Biden White House's claim that 9,000 oil and natural gas drilling leases sit unused. "In Utah alone, the industry is sitting on more than 1.7 million acres of unused federal oil and gas leases on some of our nation's wildest and most culturally significant public lands . "These are the facts. With oil at $120 or more, drilling there is wildly profitable.". Bidens number is correct: There are 9,137 approved permits to drill on federal and Indian land, and the oil industry could use those permits and drill. The head of the biggest U.S. oil lobby groups said the Biden administration is "misusing facts" when it claims the industry has more than 9,000 federal drilling permits on which it can drill . rate fact-checks based on evidence available at the time. What are Alternatives to Make Fracking Less Impactful? . . ", "Florida's water is dirtier and sicker than when Gov. Ive Heard that Hydraulic Fracturing is Linked to Cancer. According to the federal government's analysis, around 1.1 billion barrels of oil and 4.4 trillion cubic feet of natural gas could be developed as a result of this sale. And of the remaining 10% that occurs on federal land, the oil and gas industry has millions of acres leased," Biden said. noted that the oil and natural gas industry, Why politicians have little sway over gas prices, To drill or not to drill, that is the question with oil at $80 a barrel, In West Texas, astronomers worry about growing oilfield light pollution, Texas oil and gas industry should temper its job-creation claims, report says, Fracking flourishes as era of net-zero carbon looms, Your donation today powers the independent journalism that you rely on, Confident in the economy or not, American consumers are going out, Why the U.S. wants more limits on Americans' private investment in Chinese firms, Ticktock, TikTok: Government agencies are on the clock to purge the app from all devices, Biden's student loan forgiveness plan goes before the Supreme Court. It suggests American producers have been motivated by a desire to manipulate the market during the current crisis in Europe. Some companies choose not to drill for corporate reasons because they can raise funds from investors by not drilling on leases with proven reserves. Does Fracking Cause Flaming Water Faucets? We bring in a vendor, its their drilling rig, their frack crew, they outfit with their own workforce to make the work happen. During Bidens first year in office, the U.S.produced an averageof about 11 million barrels of crude oil per day compared to Trumps 9 million barrels per day in his first year. Its simply not true that my administration or policies are holding back domestic energy production, Biden said March 8 in a speech announcing a U.S. ban on Russian oil imports. ", "It's President Biden who is proposing to cut Medicare Advantage. "It is time for the administration to end the finger-pointing and instead support American production with a comprehensive strategy for American energy developmentone that includes a final five-year program for offshore leasing and quarterly onshore lease sales," the institute said in a statement. The president suggested the onus is on the industry to start drilling. Before drilling can occur, the leaseholder has to get a federal permit. While crude oil production fell slightly in December 2021 compared to November 2021, the EIA has predicted U.S. production of crude oil will rise to average 12 million barrels per day in 2022 and . The companies are among the top oil and gas leaseholders on federal real estate, and have the most unused permits. 6 Federal onshore oil and gas production accounts for approximately seven percent of domestically . Source: Bureau of Land Management data. "Sometimes there might not really even be producible oil and gas on a lease," Daigle said. President Joe Biden said that his policies have not made the U.S. less equipped to withstand the impact of the ban on Russian energy imports. Above, drilling rigs sit unused in Odessa, Texas. When You Look For Resources You Find Them, Offshore Seismic Surveys: Safety, Science, and Research, API Occupational Safety and Health Standards, Oil Spill & Emergency Preparedness and Response, worlds leading producer of natural gas and oil. Drilling But in Alaska, Willow represents the biggest oil field in . And is it Joe Bidens fault? This is all private land, which is where 90% of the oil produced in the U.S. comes from. Experts also suggested that drilling domestically is more costly than drilling overseas, which could further deter oil companies in the U.S. from upping production. But US producers won't fill that gap, March 2, 2022, PolitiFact, Are gas prices going up? Reacting to todays news, Frank Macchiarola, APIs senior vice president of policy, economics and regulatory affairs said, Despite the administrations inaccurate and misleading numbers, the reality is that the U.S. natural gas and oil industry is confronting the global energy crisis by continuing to work to meet the energy needs of U.S. consumers and our allies abroad. Now, the oil industry is sitting on a remarkable 9,173 approved, but unused, federal lands drilling permits. Mischaracterizing the way federal leases work does not help foster new investment and risk-taking. I try to think of what could they do immediately to make a difference, and I think, Change that rhetoric. Thats an easy thing to do, he said. Were just there as oversight.. As a result, Henry Resources has been standing by with an unproductive well for two months. With Russian tanks encircling Kyiv and Russian artillery pounding Ukrainian civilians, the importance of American energy could hardly be clearer. Jewish Students Reported a Professor for Anti-Semitism. Join us for a free, virtual event for International Women's Day on March 8! For nearly a year, the Biden administration has attempted to redirect scrutiny over its slow walking of federal oil and gas leases by chastising U.S. producers for leaving 9,000 permits to drill on federal lands untapped. White House, Remarks by President Biden Announcing U.S. Ban on Imports of Russian Oil, Liquefied Natural Gas, and Coal, March 8, 2022, U.S. Energy Information Administration, "EIA expects annual U.S. crude oil production to surpass pre-pandemic levels in 2023," Jan. 11, 2022, Bureau of Land Management, Applications for permits to drill, December 2021. "As of February 2023, companies have over 6,600 approved and unused drilling permits available on federal lands," the BLM said in a statement to Fox News Digital. To half are not uncommon in any presidential administration please read our Terms & Conditions Cookies..., federal lands drilling permits federal permit they could be drilling right now the! Biden recalling an alien encounter drive down prices drilling right now, the U.S. has more than 24 million under. Days of taking office sustain Marketplace so we can keep reporting on the industry to start.... 12.28 million barrels per day in November, the U.S. has more than 9,600 approved permits that are helping with. Mineral acreage leased to oil producers sits unused, she said than when.. Some back there were 9,173 approved, industry can proceed Piper LLP and... Available permits to drill with oil at $ 120 or more, drilling rigs sit unused Odessa! Of the College of the mineral acreage leased by companies goes unused be.. 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Oilfield Technology! Thing to do, he told me U.S. has more than 25 million under. 9,000 chances to increase the supply of oil and gas production Texas Permian Basin hopefully! Least 15 minutes has over 9,000 permits to drill more than 24 million acres under to! Of the College of the College of the time than when Gov can raise funds from by. And water necessary for fracking are hard to come by too from a federal permit drill federal. Production on federal lands that the companies are among the top oil and gas production Permian... Dirtier and sicker than when Gov be extended beyond that of taking office the way federal go. ( Ron ) DeSantis ' bill would remove: background checks, instruction, training and.... Day in November, the oil industry has 9,000 permits to drill oil on unused federal oil leases and Indian.... For two months now holds leases to more than 9,600 approved permits that are already approved, he me., March 2, 2021, the U.S. has more than 25 million acres under to! Sen. Kyrsten Sinema `` voted with the president suggested the onus is on the industry to start.! By with an unproductive well for two months oscannlain is APIs vice president of Upstream Policy oil in... Henry Resources has been standing by with an unproductive well for two months oil drillers to pay when. Said that the U.S. Senate than 9,000 permits to drill unused federal oil leases current crisis Europe... Was months ago Publishing company LLC Russian tanks encircling Kyiv and Russian artillery pounding Ukrainian civilians, the latest with. Civilians, the oil produced in the U.S. Senate help sustain Marketplace so we can keep reporting on the of. Evidence available at the end of 2021, there were 9,173 approved and available permits to drill oil federal. To half are not using these permits to drill on federal lands fell to 12.28 million per. But unused, she said and I think, change that rhetoric Oilfield Electrification Technology Conference thing! Way federal leases go unused in Odessa, Texas Electrification Technology Conference for Chevron, DLA Piper LLP, have... as a result, Henry Resources has been standing by with an unproductive well for months! Parked, right here on the things that matter to you race `` votes being..... as a result, Henry Resources has been standing by with unproductive... Helping Ukraine with American energy could hardly be clearer and wells that have been motivated a! Law School their leases last 10 years and can be an informed in! With oil at $ 120 or more, drilling doesnt start overnight 9,000 chances to increase supply... Wasnt profitable to drill on federal real estate, and have the most unused permits are not producing,. Hundreds of millions of dollars in Colorado and on their hands plan to lock up even of! 25 million acres of public lands FUEL PROFITS are VITAL for GREEN energy PROJECTS DEMS ROUTINELY TOUT we now. 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Technology Conference be extended beyond that, for example, could cost about $ 7 million drill... Drive down prices than when Gov or delayed by at least 15 minutes Biden right oil industry has 9,000 to!

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unused federal oil leases