BISMARCK, N.D. (KFGO KVRR) – As gas prices stabilize or in some parts of the country continue to rise, oil production has steadily decreased in North Dakota and other oil-producing states.
With the Biden administration’s ban on drilling permits and hydraulic fracturing on federal lands, North Dakota could miss out on at least $570 million over the next 15 years. That’s according to the state’s Department of Mineral Resources.
“A little troubling that our U.S. producers are finding it so difficult to ramp up production when you see $90 or $100 oil. But, the finance years and the investors are saying no, this is a short-term problem. We’re thinking long-term and long-term this administration doesn’t want your business and the workforce is not really there to push it much higher in the short term,” Director of the North Dakota Department of Mineral Resources Lynn Helms said.
Half of the royalties on federal land typically go to the state while the other half goes to the county where oil is produced.
“We haven’t added any federal producing leases since 2016. For the U.S. in total, it’s the lowest number in producing leases since 2010,” Helms said.
He adds the COVID-19 pandemic played a major effect in the shift of less production and says you can expect drilling activity to increase slowly, but the Biden administration has full control if drilling is allowed on public land.
“We’re not just not leasing, but we’re not permitting wells either on public lands. So, that’s consistent with the strategy I guess or the attitude of the current administration,” says Helms.
In his first day in office, Biden banned drilling on public lands saying our country has waited too long to deal with its climate crisis. Helms also implies the federal government is missing a big opportunity by blocking off areas that are ready for drilling
The Energy Information Administration projects oil production in the U.S. will rise significantly with a forecast increasing up to 630,000 barrels per day to average 12.6 million barrels per day.
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