As of January 20, 2025, the average price of regular gasoline in the United States was $3.13 per gallon and is not being estimated to decline in 2025. Trump is removing regulations to allow faster action on oil and natural gas production. Alaska has announced that Anwar and other sites are prepared to increase oil production now. The US needs to reduce regular gasoline costs to remain at less than $3 per gallon. If the US can increase production to add 3B per day, we could increase from 13bpd to16bpd and send regular gasoline costs to under $2.50 per gallon. The goal is to reach 20bpd to match US Oil consumption.
US oil and natural gas permits will accelerate and production will be increased under the Energy Emergency Executive Order signed by Trump on 1-20-25.
US oil and natural gas permits will increase to increase supply and lower fuel and nitrogen costs. This will allow food prices to be set by supply and demand.
The time it takes to get an oil drilling permit depends on the agency that issues the permit and whether the application needs to be deferred.
Federal
lands
·
The
Bureau of Land Management (BLM) has 10 days to review a drilling permit
application.
·
If
the application is complete, the BLM has 30 days to process it.
· If the application needs to be deferred, it will be placed in a deferred status.
How
long does it take to start drilling for oil?
Oil and gas production is a complex, lengthy, and costly process that starts long before the drilling begins. Shale wells can be drilled in two to four weeks and brought online within months, while offshore wells are costlier and can take much longer.
Federal Oil & Gas Leasing and Permitting FACT SHEET Key Points
•
Federal lands and waters are significant to U.S. energy production. Oil
production from federal lands and waters provides approximately 24 percent of
total U.S. oil production.
1
Additionally, natural gas production from federal lands and waters is
approximately 11 percent of total U.S. natural gas production.
2
• The laws governing federal leasing require companies to either produce oil
and/or natural gas on leases or return the leases to the government (the
so-called “use it or lose it” provision) generally within 10 years.
3 • A “non-producing” lease does not mean it is inactive. • Developing a lease takes years and substantial effort to determine whether the underlying geology holds commercial quantities of oil and/or natural gas. • The lengthy process to develop leases is often prolonged by administrative, regulatory, and legal challenges. • The Biden Administration violated Congressional statute by halting all federal oil and gas lease sales – onshore and offshore – and is thereby creating an inevitable decline in federal production over time.
Nationwide,
nearly 2-out-of-3 onshore federal lands leases in effect are producing oil
and/or natural gas, the highest percentage in 20 years.4 That number may be
even higher in certain subsets of states. • Onshore, there are currently nearly
100,000 producing wells on federal lands. 5 The approximately 9,000 approved
applications for permits to drill (APDs) represent a relatively small fraction
of federal production. • The number of drilled but uncompleted wells (DUCs) on
federal lands has fallen by over 40% in the last year, from 7,700 to 4,400.6
DUCs are ready to produce once the circumstances align – weather, financial,
supply chain issues, etc.
Norb Leahy, Dunwoody GA Tea Party Leader
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