Page 2 - aruba-today-20220319

A2 UP FRONT
Saturday 19 March 2022
"There's not a lot of low-
hanging fruit," he said.
Some oil producing regions
already were bouncing
back as the industry shakes
off its pandemic slowdown,
particularly the Permian
Basin — the nation's busi-
est oil patch with 45,000
wells drilled over the past
decade, according to the
Energy Information Admin-
istration. Other oil patches
that could see expansions
include Oklahoma's Mid-
continent area and Colo-
rado's D-J Basin, McConn
said.
Operators in the Permian
Basin described growth as
steady since last spring. By
January, they topped 5 mil-
lion barrels a day.
Still, the mood this time
around is different. "It's not
a 'drill baby drill' type of
mentality like there was be-
fore," said Stephen M. Rob-
ertson with the Permian Ba-
sin Petroleum Association.
Multiple factors are tem-
pering a production boom,
he said, including volatile
prices, labor issues and lon-
ger wait times for parts to
be fabricated and supplies
In this April 24, 2015, file photo, pumpjacks work in a field near Lovington, N.M. shipped. Even the custom
Associated Press cowboy boots favored by
some workers have been
Continued from Front called for American ener- Obstacles to more U.S. oil cal pressure and less-cau- hard to come by.
The White House, too, gy to be "unleashed" and are surmountable, accord- tious shareholders — com- "It's not just one factor that
called for more drilling and more public lands opened ing to analysts, yet will take panies in the U.S. could see is telling the industry out
cited the war as it shelved to drilling. Daines accused months to work through production rise by just over here what it should do. It's
Biden's campaign pledge Democrats of using the and it could be late this 1 million barrels daily by the not just high prices," Robert-
to curb drilling on public Russia oil ban to cover up a year or early next before end of the year, said Rob- son said.
lands because of climate supposed scheme to "ban a significant production in- ert Johnston with Columbia If the conflict in Ukraine
change. all oil." crease materializes. University's Center on Glob- drags on, prices stay high
Yet political rhetoric about The U.S. doesn't import "It's going to be a slower al Energy Policy. and the logistical hurdles
quickly ramping up U.S. much Russian oil and ramp up for fields like ours," Some of the biggest U.S. are overcome, companies
crude output is at odds with Biden's administration has McDermott said. "Every- reserves are offshore in the could move into relatively
the industry's reality: There's effectively halted new oil body in the industry would Gulf of Mexico. However, untapped fields, including
not enough workers to rap- or natural gas lease sales say if we have a consistent the massive platforms used Wyoming's Powder River
idly expand, scant money from federal lands and price, then you know what in deep Gulf waters take Basin and Utah's Uinta Ba-
to invest in drilling and waters. But it's approved you would get for an ex- years to finance, build and sin.
wariness that today's high almost 4,000 new drilling tended period of time and put into place. But it won't be anything
prices won't last, according permits on federal lands it's easy to make business A near-term crude boost like booms that swept
to industry representatives, and companies have thou- decisions." would have to come from through those regions over
analysts and state officials. sands more stockpiled. In the short term, the world's onshore oil resources al- the past decade, drawing
"It would be great to pro- White House spokesperson looking to other sources. ready developed, such as thousands of workers who
duce more domestically," Jen Psaki said companies The United Arab Emirates the Permian Basin in New overwhelmed housing and
McDermott said. "(But) it's should use those permits to said last week it would urge Mexico and Texas and the other services and trans-
so volatile. ... We haven't "go get more supply out of OPEC to consider boost- Bakken of North Dakota formed rural communities
had any access to capital the ground." ing oil output, which sent and Montana, said Andy into centers of industry.
for years. If we drilled, mon- Federal energy reserves oil prices tumbling. Saudi McConn with Enverus, an Larry Scott, an engineer
ey would have to come account for about a quar- Arabia alone has roughly 2 energy analytics company who has worked in the oil
from existing production. ter of U.S. oil, with the re- million barrels a day of ad- whose data is used by in- business for decades and
It's a risky business." mainder coming from pri- ditional capacity standing dustry and government now represents a portion of
Republicans from energy vate, tribal and state land. by, said Rice University en- agencies. the Permian Basin as a Re-
states have brushed past Pumping rates overall ergy researcher Jim Krane. Even in those areas, there's publican in the New Mexi-
the industry's logistical con- slowly increased during By comparison, total U.S. no way to simply crank co Legislature, said oil and
straints to pin blame for slow Biden's first year as the in- production last year was open the spigot immedi- gas companies still have
U.S. oil growth on Demo- dustry climbed out of the about 11 million barrels a ately. The most easily ac- to conquer the labor chal-
crats and Biden. Texas Sen. pandemic, when oil future day. cessible reserves already lenge. "You can't ramp up
Ted Cruz and Montana prices briefly dipped below Even with favorable condi- have been drilled, McConn if you can't find qualified
Sen. Steve Daines have $0 a barrel. tions — strong prices, politi- said. people to do it," he said.q