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Post by RCajunRunner on Jan 23, 2021 5:00:52 GMT 14
As many of you know, President Biden's Administration put an immediate 60 Day freeze on the issuing of ANY oil & gas related authorizations on Federal Lands, whether new mineral or surface leases, drilling permits, or even temporary or "permanent" easements. In a state like New Mexico, one which has a Democrat Governor and Democrat majority Legislature, these attempt to halt (with possibly the long-term goal of eliminating) any new activities on even just Federal acreage could have dire consequences. Just look at the money oil & gas, much through the 50/50 revenue sharing on Federal Lands, contributes to New Mexico's public education system. Oil and gas contributed about $1.37 billion to public education in New Mexico, per a recent study from industry leaders for Fiscal Year 2020 – even as the state and world economy was ravaged by the COVID-19 heath crisis.
In Fiscal Year 2019, oil and gas contributed about $1.36 billion to public education in a year of record-breaking production led by the Permian Basin and a boom in hydraulic fracturing.
About $1.1 billion went to K-12 education, the study read, with $290.5 million going to higher education compared with $1.05 billion and $302 million in FY 2019, respectively.
Oil and gas provided about $60,000 per teacher and $3,788 per student.
In total, the study showed the industry contributed about $2.8 billion in state revenue, compared with more than $3 billion in FY 2019, accounting for 33.5 percent of total state spending.
www.currentargus.com/story/news/local/2020/12/22/nm-oil-gas-industry-new-mexico-schools-covid-19-pandemic/3943687001/Oh, but RCajunRunner, stop being such a hack! This is only Federal Lands! There's all this other acreage to drill and produce from! Below from just the most recent quarterly BLM lease sale, in a downturn year where the oil & gas industry has much less capital to work with...$1.5 Million for the State of New Mexico in just one day. This does not account for all the 50% of royalties from current and soon to be future production on current leases pouring into the State coffers to benefit New Mexico's public school children. As part of the Trump Administration’s goal of promoting responsible energy development, the Bureau of Land Management New Mexico raised $3,132,946 in its oil and gas lease sale held Oct. 29, 2020. Nearly 50 percent of the revenue from the sale will go to the states where the oil and gas activity occurs—in this case New Mexico—while the rest will go to the U.S. Treasury. The states use the revenue from lease sales to fund important services including schools, hospitals, law enforcement, and infrastructure projects.
For this sale, the BLM offered leases on 11 parcels totaling 7,730.86. The highest bid per acre was $11,353 which sold to Federal Abstract Company for 294 acres in Eddy County, New Mexico. The same parcel also received the highest bid per parcel with a total of $1,816,480.
The BLM awards oil and gas leases for a term of 10 years and as long thereafter as there is production of oil and gas in paying quantities. If the leases result in producing oil or gas wells, revenue from royalties based on production is also shared with the state.www.blm.gov/press-release/bureau-land-management-new-mexico-oil-and-gas-lease-sale-nets-more-3-million#:~:text=The%20Bureau%20of%20Land%20Management,million%20%7C%20Bureau%20of%20Land%20Management&text=A%20.,organization%20in%20the%20United%20States.Why is President Joe Biden's Administration acting so hostile towards activities that are an enormous contributor to the education of New Mexico's children? Isn't sufficiently funded public education supposed to be one of the primary issues the Democrat Party hangs its hat on?? |
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Post by Airwick on Jan 23, 2021 5:44:37 GMT 14
It's crazy that he's jeopardizing the future of so many innocent children. The fact that their education is at stake here shows how much Biden and crew do not care about our children's future.
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cajunaxe
Member
Here living in Paradise!
Posts: 204
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Post by cajunaxe on Jan 23, 2021 6:02:02 GMT 14
As many of you know, President Biden's Administration put an immediate 60 Day freeze on the issuing of ANY oil & gas related authorizations on Federal Lands, whether new mineral or surface leases, drilling permits, or even temporary or "permanent" easements. In a state like New Mexico, one which has a Democrat Governor and Democrat majority Legislature, these attempt to halt (with possibly the long-term goal of eliminating) any new activities on even just Federal acreage could have dire consequences. Just look at the money oil & gas, much through the 50/50 revenue sharing on Federal Lands, contributes to New Mexico's public education system. Oil and gas contributed about $1.37 billion to public education in New Mexico, per a recent study from industry leaders for Fiscal Year 2020 – even as the state and world economy was ravaged by the COVID-19 heath crisis.
In Fiscal Year 2019, oil and gas contributed about $1.36 billion to public education in a year of record-breaking production led by the Permian Basin and a boom in hydraulic fracturing.
About $1.1 billion went to K-12 education, the study read, with $290.5 million going to higher education compared with $1.05 billion and $302 million in FY 2019, respectively.
Oil and gas provided about $60,000 per teacher and $3,788 per student.
In total, the study showed the industry contributed about $2.8 billion in state revenue, compared with more than $3 billion in FY 2019, accounting for 33.5 percent of total state spending.
www.currentargus.com/story/news/local/2020/12/22/nm-oil-gas-industry-new-mexico-schools-covid-19-pandemic/3943687001/Oh, but RCajunRunner, stop being such a hack! This is only Federal Lands! There's all this other acreage to drill and produce from! Below from just the most recent quarterly BLM lease sale, in a downturn year where the oil & gas industry has much less capital to work with...$1.5 Million for the State of New Mexico in just one day. This does not account for all the 50% of royalties from current and soon to be future production on current leases pouring into the State coffers to benefit New Mexico's public school children. As part of the Trump Administration’s goal of promoting responsible energy development, the Bureau of Land Management New Mexico raised $3,132,946 in its oil and gas lease sale held Oct. 29, 2020. Nearly 50 percent of the revenue from the sale will go to the states where the oil and gas activity occurs—in this case New Mexico—while the rest will go to the U.S. Treasury. The states use the revenue from lease sales to fund important services including schools, hospitals, law enforcement, and infrastructure projects.
For this sale, the BLM offered leases on 11 parcels totaling 7,730.86. The highest bid per acre was $11,353 which sold to Federal Abstract Company for 294 acres in Eddy County, New Mexico. The same parcel also received the highest bid per parcel with a total of $1,816,480.
The BLM awards oil and gas leases for a term of 10 years and as long thereafter as there is production of oil and gas in paying quantities. If the leases result in producing oil or gas wells, revenue from royalties based on production is also shared with the state.www.blm.gov/press-release/bureau-land-management-new-mexico-oil-and-gas-lease-sale-nets-more-3-million#:~:text=The%20Bureau%20of%20Land%20Management,million%20%7C%20Bureau%20of%20Land%20Management&text=A%20.,organization%20in%20the%20United%20States.Why is President Joe Biden's Administration acting so hostile towards activities that are an enormous contributor to the education of New Mexico's children? Isn't sufficiently funded public education supposed to be one of the primary issues the Democrat Party hangs its hat on?? Come on, give me a break, man! Did you really think he was a soft spoken moderate? |
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Post by BabbForHeisman on Jan 23, 2021 6:04:13 GMT 14
As many of you know, President Biden's Administration put an immediate 60 Day freeze on the issuing of ANY oil & gas related authorizations on Federal Lands, whether new mineral or surface leases, drilling permits, or even temporary or "permanent" easements. In a state like New Mexico, one which has a Democrat Governor and Democrat majority Legislature, these attempt to halt (with possibly the long-term goal of eliminating) any new activities on even just Federal acreage could have dire consequences. Just look at the money oil & gas, much through the 50/50 revenue sharing on Federal Lands, contributes to New Mexico's public education system. Oil and gas contributed about $1.37 billion to public education in New Mexico, per a recent study from industry leaders for Fiscal Year 2020 – even as the state and world economy was ravaged by the COVID-19 heath crisis.
In Fiscal Year 2019, oil and gas contributed about $1.36 billion to public education in a year of record-breaking production led by the Permian Basin and a boom in hydraulic fracturing.
About $1.1 billion went to K-12 education, the study read, with $290.5 million going to higher education compared with $1.05 billion and $302 million in FY 2019, respectively.
Oil and gas provided about $60,000 per teacher and $3,788 per student.
In total, the study showed the industry contributed about $2.8 billion in state revenue, compared with more than $3 billion in FY 2019, accounting for 33.5 percent of total state spending.
www.currentargus.com/story/news/local/2020/12/22/nm-oil-gas-industry-new-mexico-schools-covid-19-pandemic/3943687001/Oh, but RCajunRunner, stop being such a hack! This is only Federal Lands! There's all this other acreage to drill and produce from! Below from just the most recent quarterly BLM lease sale, in a downturn year where the oil & gas industry has much less capital to work with...$1.5 Million for the State of New Mexico in just one day. This does not account for all the 50% of royalties from current and soon to be future production on current leases pouring into the State coffers to benefit New Mexico's public school children. As part of the Trump Administration’s goal of promoting responsible energy development, the Bureau of Land Management New Mexico raised $3,132,946 in its oil and gas lease sale held Oct. 29, 2020. Nearly 50 percent of the revenue from the sale will go to the states where the oil and gas activity occurs—in this case New Mexico—while the rest will go to the U.S. Treasury. The states use the revenue from lease sales to fund important services including schools, hospitals, law enforcement, and infrastructure projects.
For this sale, the BLM offered leases on 11 parcels totaling 7,730.86. The highest bid per acre was $11,353 which sold to Federal Abstract Company for 294 acres in Eddy County, New Mexico. The same parcel also received the highest bid per parcel with a total of $1,816,480.
The BLM awards oil and gas leases for a term of 10 years and as long thereafter as there is production of oil and gas in paying quantities. If the leases result in producing oil or gas wells, revenue from royalties based on production is also shared with the state.www.blm.gov/press-release/bureau-land-management-new-mexico-oil-and-gas-lease-sale-nets-more-3-million#:~:text=The%20Bureau%20of%20Land%20Management,million%20%7C%20Bureau%20of%20Land%20Management&text=A%20.,organization%20in%20the%20United%20States.Why is President Joe Biden's Administration acting so hostile towards activities that are an enormous contributor to the education of New Mexico's children? Isn't sufficiently funded public education supposed to be one of the primary issues the Democrat Party hangs its hat on?? This article has a lot of big numbers in it, but do we know how much they will lose with a 60 day freeze? And if 60 days turns into 180 or 360 days? |
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Post by RCajunRunner on Jan 23, 2021 6:16:29 GMT 14
This article has a lot of big numbers in it, but do we know how much they will lose with a 60 day freeze? And if 60 days turns into 180 or 360 days? I'd say there's a host of wild card factors to project at this point how much would be lost with a 60 day freeze, and any extension thereof. What are the time to market affects and losses if an operator was drilling a well and expecting the ROW for the flowline to the CTB to be approved any day now, but suddenly has to delay completing and flowing the production? OR...will it instead turn into a negative impact on the environment because said operator, rather than taking a 0 in time to market, stacks as much oil on location as possible to be trucked out (increased emissions from more trucks on the road), also meaning having to truck the produced water away, and flaring the gas up into the atmosphere?? Similar to ex-President Donald Trump either not caring or not realizing the troubles his rhetoric could cause, it looks like President Biden already in Day 2 of his administration is taking a partisan action to appease the extreme enviro-leftist ideology without caring or understanding the negative impacts that will be had, both financially and environmentally, ironically enough. |
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cajunaxe
Member
Here living in Paradise!
Posts: 204
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Post by cajunaxe on Jan 23, 2021 6:20:00 GMT 14
As many of you know, President Biden's Administration put an immediate 60 Day freeze on the issuing of ANY oil & gas related authorizations on Federal Lands, whether new mineral or surface leases, drilling permits, or even temporary or "permanent" easements. In a state like New Mexico, one which has a Democrat Governor and Democrat majority Legislature, these attempt to halt (with possibly the long-term goal of eliminating) any new activities on even just Federal acreage could have dire consequences. Just look at the money oil & gas, much through the 50/50 revenue sharing on Federal Lands, contributes to New Mexico's public education system. Oil and gas contributed about $1.37 billion to public education in New Mexico, per a recent study from industry leaders for Fiscal Year 2020 – even as the state and world economy was ravaged by the COVID-19 heath crisis.
In Fiscal Year 2019, oil and gas contributed about $1.36 billion to public education in a year of record-breaking production led by the Permian Basin and a boom in hydraulic fracturing.
About $1.1 billion went to K-12 education, the study read, with $290.5 million going to higher education compared with $1.05 billion and $302 million in FY 2019, respectively.
Oil and gas provided about $60,000 per teacher and $3,788 per student.
In total, the study showed the industry contributed about $2.8 billion in state revenue, compared with more than $3 billion in FY 2019, accounting for 33.5 percent of total state spending.
www.currentargus.com/story/news/local/2020/12/22/nm-oil-gas-industry-new-mexico-schools-covid-19-pandemic/3943687001/Oh, but RCajunRunner, stop being such a hack! This is only Federal Lands! There's all this other acreage to drill and produce from! Below from just the most recent quarterly BLM lease sale, in a downturn year where the oil & gas industry has much less capital to work with...$1.5 Million for the State of New Mexico in just one day. This does not account for all the 50% of royalties from current and soon to be future production on current leases pouring into the State coffers to benefit New Mexico's public school children. As part of the Trump Administration’s goal of promoting responsible energy development, the Bureau of Land Management New Mexico raised $3,132,946 in its oil and gas lease sale held Oct. 29, 2020. Nearly 50 percent of the revenue from the sale will go to the states where the oil and gas activity occurs—in this case New Mexico—while the rest will go to the U.S. Treasury. The states use the revenue from lease sales to fund important services including schools, hospitals, law enforcement, and infrastructure projects.
For this sale, the BLM offered leases on 11 parcels totaling 7,730.86. The highest bid per acre was $11,353 which sold to Federal Abstract Company for 294 acres in Eddy County, New Mexico. The same parcel also received the highest bid per parcel with a total of $1,816,480.
The BLM awards oil and gas leases for a term of 10 years and as long thereafter as there is production of oil and gas in paying quantities. If the leases result in producing oil or gas wells, revenue from royalties based on production is also shared with the state.www.blm.gov/press-release/bureau-land-management-new-mexico-oil-and-gas-lease-sale-nets-more-3-million#:~:text=The%20Bureau%20of%20Land%20Management,million%20%7C%20Bureau%20of%20Land%20Management&text=A%20.,organization%20in%20the%20United%20States.Why is President Joe Biden's Administration acting so hostile towards activities that are an enormous contributor to the education of New Mexico's children? Isn't sufficiently funded public education supposed to be one of the primary issues the Democrat Party hangs its hat on?? This article has a lot of big numbers in it, but do we know how much they will lose with a 60 day freeze? And if 60 days turns into 180 or 360 days? Do we know how much Louisiana is going to lose in potential revenue? How about Texas? I read were his bans on Fracking and the KeyStone XL pipeline could cost an estimated 7M jobs. I wonder if everyone is fine with his policy decisions on both? Does the ends justify the means? We shall see. |
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cajunaxe
Member
Here living in Paradise!
Posts: 204
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Post by cajunaxe on Jan 23, 2021 6:21:29 GMT 14
This article has a lot of big numbers in it, but do we know how much they will lose with a 60 day freeze? And if 60 days turns into 180 or 360 days? I'd say there's a host of wild card factors to project at this point how much would be lost with a 60 day freeze, and any extension thereof. What are the time to market affects and losses if an operator was drilling a well and expecting the ROW for the flowline to the CTB to be approved any day now, but suddenly has to delay completing and flowing the production? OR...will it instead turn into a negative impact on the environment because said operator, rather than taking a 0 in time to market, stacks as much oil on location as possible to be trucked out (increased emissions from more trucks on the road), also meaning having to truck the produced water away, and flaring the gas up into the atmosphere?? Similar to ex-President Donald Trump either not caring or not realizing the troubles his rhetoric could cause, it looks like President Biden already in Day 2 of his administration is taking a partisan action to appease the extreme enviro-leftist ideology without caring or understanding the negative impacts that will be had, both financially and environmentally, ironically enough. Did you believe he was going to do anything else? Did you believe his statement that they would not ban fracking? |
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Post by Airwick on Jan 23, 2021 6:35:36 GMT 14
As many of you know, President Biden's Administration put an immediate 60 Day freeze on the issuing of ANY oil & gas related authorizations on Federal Lands, whether new mineral or surface leases, drilling permits, or even temporary or "permanent" easements. In a state like New Mexico, one which has a Democrat Governor and Democrat majority Legislature, these attempt to halt (with possibly the long-term goal of eliminating) any new activities on even just Federal acreage could have dire consequences. Just look at the money oil & gas, much through the 50/50 revenue sharing on Federal Lands, contributes to New Mexico's public education system. Oil and gas contributed about $1.37 billion to public education in New Mexico, per a recent study from industry leaders for Fiscal Year 2020 – even as the state and world economy was ravaged by the COVID-19 heath crisis.
In Fiscal Year 2019, oil and gas contributed about $1.36 billion to public education in a year of record-breaking production led by the Permian Basin and a boom in hydraulic fracturing.
About $1.1 billion went to K-12 education, the study read, with $290.5 million going to higher education compared with $1.05 billion and $302 million in FY 2019, respectively.
Oil and gas provided about $60,000 per teacher and $3,788 per student.
In total, the study showed the industry contributed about $2.8 billion in state revenue, compared with more than $3 billion in FY 2019, accounting for 33.5 percent of total state spending.
www.currentargus.com/story/news/local/2020/12/22/nm-oil-gas-industry-new-mexico-schools-covid-19-pandemic/3943687001/Oh, but RCajunRunner, stop being such a hack! This is only Federal Lands! There's all this other acreage to drill and produce from! Below from just the most recent quarterly BLM lease sale, in a downturn year where the oil & gas industry has much less capital to work with...$1.5 Million for the State of New Mexico in just one day. This does not account for all the 50% of royalties from current and soon to be future production on current leases pouring into the State coffers to benefit New Mexico's public school children. As part of the Trump Administration’s goal of promoting responsible energy development, the Bureau of Land Management New Mexico raised $3,132,946 in its oil and gas lease sale held Oct. 29, 2020. Nearly 50 percent of the revenue from the sale will go to the states where the oil and gas activity occurs—in this case New Mexico—while the rest will go to the U.S. Treasury. The states use the revenue from lease sales to fund important services including schools, hospitals, law enforcement, and infrastructure projects.
For this sale, the BLM offered leases on 11 parcels totaling 7,730.86. The highest bid per acre was $11,353 which sold to Federal Abstract Company for 294 acres in Eddy County, New Mexico. The same parcel also received the highest bid per parcel with a total of $1,816,480.
The BLM awards oil and gas leases for a term of 10 years and as long thereafter as there is production of oil and gas in paying quantities. If the leases result in producing oil or gas wells, revenue from royalties based on production is also shared with the state.www.blm.gov/press-release/bureau-land-management-new-mexico-oil-and-gas-lease-sale-nets-more-3-million#:~:text=The%20Bureau%20of%20Land%20Management,million%20%7C%20Bureau%20of%20Land%20Management&text=A%20.,organization%20in%20the%20United%20States.Why is President Joe Biden's Administration acting so hostile towards activities that are an enormous contributor to the education of New Mexico's children? Isn't sufficiently funded public education supposed to be one of the primary issues the Democrat Party hangs its hat on?? This article has a lot of big numbers in it, but do we know how much they will lose with a 60 day freeze? And if 60 days turns into 180 or 360 days? Those numbers would be nice, I agree with you. I think this specific 60 day hold is nothing for Deepwater to worry about; It’s short term. But onshore players can drill in what, 7-10 weeks?? This hits them hard. |
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Post by RCajunRunner on Jan 23, 2021 6:35:54 GMT 14
I'd say there's a host of wild card factors to project at this point how much would be lost with a 60 day freeze, and any extension thereof. What are the time to market affects and losses if an operator was drilling a well and expecting the ROW for the flowline to the CTB to be approved any day now, but suddenly has to delay completing and flowing the production? OR...will it instead turn into a negative impact on the environment because said operator, rather than taking a 0 in time to market, stacks as much oil on location as possible to be trucked out (increased emissions from more trucks on the road), also meaning having to truck the produced water away, and flaring the gas up into the atmosphere?? Similar to ex-President Donald Trump either not caring or not realizing the troubles his rhetoric could cause, it looks like President Biden already in Day 2 of his administration is taking a partisan action to appease the extreme enviro-leftist ideology without caring or understanding the negative impacts that will be had, both financially and environmentally, ironically enough. Did you believe he was going to do anything else? Did you believe his statement that they would not ban fracking? He actually did say he would work towards banning fracking on Federal Lands. He never really backed off of that. He did say he wouldn't ban fracking nation-wide (meaning on private and State-owned lands as well). Of course, that said, I don't believe much that politicians say, regardless of party affiliation. And look, this isn't a "fracking ban" per say on Federal Lands. Not if you've already had your APD and temporary frac line easement across said Fed lands already approved. But...it will be interesting if this 60 days turns into 180 or 360. Then your approved temp frac line easement would expire out. At that point, operators who hold leases that they purchased from the Feds, with the contractual understanding they would be allowed to produce those leases in reasonable economic manners, would have to seriously consider a challenge in the courts. If it goes to the Supreme Court, well...you'd hope we'd have a majority there to rule that the Department of Interior has suddenly begun acting in bad faith for an already agreed to and executed, binding contract (the oil & gas lease). |
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Post by RCajunRunner on Jan 23, 2021 6:38:27 GMT 14
This article has a lot of big numbers in it, but do we know how much they will lose with a 60 day freeze? And if 60 days turns into 180 or 360 days? Those numbers would be nice, I agree with you. I think this specific 60 day hold is nothing for Deepwater to worry about; It’s short term. But onshore players can drill in what, 7-10 weeks?? This hits them hard. About 4-6 months to get the Federal APD (at least in Permian New Mexico, the best productive onshore Fed Lands at this time). But even if that is already approved, if you're still waiting on pipeline ROW to get your product to market, or you didn't yet already have your temporary frac line ROW approved because that's usually a quick turnaround, then what are you to do? |
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cajunaxe
Member
Here living in Paradise!
Posts: 204
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Post by cajunaxe on Jan 23, 2021 6:54:50 GMT 14
Did you believe he was going to do anything else? Did you believe his statement that they would not ban fracking? He actually did say he would work towards banning fracking on Federal Lands. He never really backed off of that. He did say he wouldn't ban fracking nation-wide (meaning on private and State-owned lands as well). Of course, that said, I don't believe much that politicians say, regardless of party affiliation. And look, this isn't a "fracking ban" per say on Federal Lands. Not if you've already had your APD and temporary frac line easement across said Fed lands already approved. But...it will be interesting if this 60 days turns into 180 or 360. Then your approved temp frac line easement would expire out. At that point, operators who hold leases that they purchased from the Feds, with the contractual understanding they would be allowed to produce those leases in reasonable economic manners, would have to seriously consider a challenge in the courts. If it goes to the Supreme Court, well...you'd hope we'd have a majority there to rule that the Department of Interior has suddenly begun acting in bad faith for an already agreed to and executed, binding contract (the oil & gas lease). There is some disagreement on what he actually stated during the campaign, some say he walked it back after initially saying he would ban Fracking only on Federal lands. Kamala never made that distinction, she said that she would ban Fracking period. This is what the radical left expects and will demand from the current administration. I agree with you the likely outcome will mean it's eventually headed to the SCOTUS. I'm not confident they will touch it, and probably deal with it similarly as they did under the Obama administration. But just reading through the post concerning Biden's first few days in office and his initial Executive Orders, some here seem to surprised by his actions. Did anyone seriously believe you were going to get a soft spoken centrist? Come on, give me a break, man! |
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Post by BabbForHeisman on Jan 23, 2021 7:00:55 GMT 14
This article has a lot of big numbers in it, but do we know how much they will lose with a 60 day freeze? And if 60 days turns into 180 or 360 days? I'd say there's a host of wild card factors to project at this point how much would be lost with a 60 day freeze, and any extension thereof. What are the time to market affects and losses if an operator was drilling a well and expecting the ROW for the flowline to the CTB to be approved any day now, but suddenly has to delay completing and flowing the production? OR...will it instead turn into a negative impact on the environment because said operator, rather than taking a 0 in time to market, stacks as much oil on location as possible to be trucked out (increased emissions from more trucks on the road), also meaning having to truck the produced water away, and flaring the gas up into the atmosphere?? Similar to ex-President Donald Trump either not caring or not realizing the troubles his rhetoric could cause, it looks like President Biden already in Day 2 of his administration is taking a partisan action to appease the extreme enviro-leftist ideology without caring or understanding the negative impacts that will be had, both financially and environmentally, ironically enough. Makes you wonder why the entire government in New Mexico isn't crying fowl on this one. I mean, I understand party allegiance...but you can't just throw your school system off a cliff for party loyalty. I hope that the risk to the school system has been assessed and is deemed to be small. |
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cajunaxe
Member
Here living in Paradise!
Posts: 204
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Post by cajunaxe on Jan 23, 2021 7:09:44 GMT 14
I'd say there's a host of wild card factors to project at this point how much would be lost with a 60 day freeze, and any extension thereof. What are the time to market affects and losses if an operator was drilling a well and expecting the ROW for the flowline to the CTB to be approved any day now, but suddenly has to delay completing and flowing the production? OR...will it instead turn into a negative impact on the environment because said operator, rather than taking a 0 in time to market, stacks as much oil on location as possible to be trucked out (increased emissions from more trucks on the road), also meaning having to truck the produced water away, and flaring the gas up into the atmosphere?? Similar to ex-President Donald Trump either not caring or not realizing the troubles his rhetoric could cause, it looks like President Biden already in Day 2 of his administration is taking a partisan action to appease the extreme enviro-leftist ideology without caring or understanding the negative impacts that will be had, both financially and environmentally, ironically enough. Makes you wonder why the entire government in New Mexico isn't crying fowl on this one. I mean, I understand party allegiance...but you can't just throw your school system off a cliff for party loyalty. I hope that the risk to the school system has been assessed and is deemed to be small. I think that works both ways right? Does party allegiance in such decisions rubber stamp "the ends justify the means" course? |
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Post by RCajunRunner on Jan 23, 2021 7:28:53 GMT 14
I'd say there's a host of wild card factors to project at this point how much would be lost with a 60 day freeze, and any extension thereof. What are the time to market affects and losses if an operator was drilling a well and expecting the ROW for the flowline to the CTB to be approved any day now, but suddenly has to delay completing and flowing the production? OR...will it instead turn into a negative impact on the environment because said operator, rather than taking a 0 in time to market, stacks as much oil on location as possible to be trucked out (increased emissions from more trucks on the road), also meaning having to truck the produced water away, and flaring the gas up into the atmosphere?? Similar to ex-President Donald Trump either not caring or not realizing the troubles his rhetoric could cause, it looks like President Biden already in Day 2 of his administration is taking a partisan action to appease the extreme enviro-leftist ideology without caring or understanding the negative impacts that will be had, both financially and environmentally, ironically enough. Makes you wonder why the entire government in New Mexico isn't crying fowl on this one. I mean, I understand party allegiance...but you can't just throw your school system off a cliff for party loyalty. I hope that the risk to the school system has been assessed and is deemed to be small. Well some governments in New Mexico are very concerned, especially the local SE NM municipal and county governments. Many in NM's state government seem to think the money just grows on trees or something. Some in Santa Fe (extremely anti-oil & gas constituency, yet enjoys nice schools and roads from O&G revenues) think the money can be replaced with windmill farms and marijuana crops. But there's a couple takes regarding how New Mexico's Democrat Governor sees a ban on fracking and other oil & gas operations on Federal Lands in her state: New Mexico Governor Michelle Lujan Grisham (D), who ran on a pro–climate agenda, is breaking away from Democratic Presidential Nominee Joe Biden in touting the importance of natural gas production for her state’s economy and opposing Biden’s pledge to ban fracking on public lands.
Lujan Grisham, who is set to take part in tonight’s “Bold Leadership: Women Governors Leading the States” DNC panel, told the New Mexico Oil and Gas Association at the start of the Democratic primary process that she would request a waiver from any drilling ban passed by a Democratic administration, “to allow us to continue to produce in New Mexico.”westernwire.net/dems-divide-as-presidential-ticket-party-at-odds-with-western-members-over-fracking-public-lands/The state taking the biggest hit to its federal revenues is New Mexico, which saw a decrease year-over-year of a whopping 40%, from $1.2 billion during 2019 to just $707 million in 2020. New Mexico’s state government has profited tremendously in recent years from the massive uptick in drilling in the prolific Delaware Basin, which runs beneath the southeastern portion of the state, in Lea and Eddy Counties. In 2019, oil and gas-related revenues funded about 40% of the state’s overall budget, other than Alaska the highest percentage of any state in the country.
The New Mexico legislature and Governor Michelle Lujan Grisham chose to go about earmarking much of that higher minerals revenue for new programs, including one created last year that would make the state the first in the country to offer free public college to its citizens.
But at the same time, Gov. Grisham fully endorsed Biden and his promised fracking ban, a policy paradox that she and the Democrat majorities in both houses of the legislature will now have to defend and find ways to reconcile. The irony here is that, just as the industry appears to have embarked on a slow but steady recovery over the past two months, a Biden fracking ban now threatens to again kill the goose that laid all the golden eggs for New Mexico’s policymakers.
It’s an unfortunate situation not just for the Governor and legislators, but for New Mexico’s citizens as well, since much of the burden of balancing the budget will now fall on their shoulders, as will the double whammy coming from the Biden fracking ban.www.forbes.com/sites/davidblackmon/2020/12/09/western-states-with-big-budget-holes-will-bear-the-brunt-of-biden-fracking-ban/?sh=ec56144619cfThe current New Mexico State Land Commissioner (an elected official who overseas all activities on State Lands, including but no limited to oil & gas) ran on an extremely far-left platform. More extreme than NM's Democrat Governor, talking about ending lease sales on State Lands and not wanting new oil & gas exploration on State-owned surface. Yet within mere months of her taking office, a banner was displayed above the entrance to the State Land Office in Santa Fe declaring how much money that office brought into the New Mexico coffers, feeding the public education system. Like the above quote from the second linked article, you can talk about not wanting fracking and not wanting so much oil & gas development in your state, but when it becomes time to budget for the needs of New Mexico's government and communities, where is the extra money going to come from? You sure as heck can't raise taxes on citizens in a state that (according to World Population Review) has the third highest poverty rate in the country. And if oil & gas doesn't want to have to deal so much with increased red tape, then while exploration and production in NM won't completely go away, you will see more operations move back towards West Texas, even with the less desirable rock. How many of those industry workers will continue to still reside in Eddy and Lea County to pay income and sales taxes vs how many will move closer to their work operations and opt to live in Pecos or Midland, also enjoying zero income tax? There goes some income tax revenues along with lost oil & gas revenues, less sales at the local Albertson's, WalMart, restaurants and gas stations. Less sales taxes for hotel stays, etc... |
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Post by berryjaldwin on Jan 23, 2021 11:27:41 GMT 14
Wonder what that punk who keeps changing its screen name has to say about unity Joe taking that kind of money away from schools.
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