Royalties:
- from 12.5% to 18.75%
- very, very reasonable; that's what mom-and-pop mineral owners in the Bakken expect (18.75%)
Area to be "freed up" for permits:
- 144,000 acres
- an 80% reduction from the footprint of land that had been under evaluation for leasing
Comments:
- the three more recent Biden announcements in an attempt to lower gasoline prices at the pump:
- historic, unprecedented, record-breaking release of the SPR: to date, no effect on crude oil prices;
- E15 mandate for refiners; 2% of all retail outlets offer E15; most are in the midwest (fly-over country); and where available, most consumers do not want;
- backtracking: allowing drilling on federal land:
- of the three, the third, politically, is perhaps the most remarkable of all his announcements
- the area involved is so small it will make no difference, none whatsoever
- however, this was a huge blow to his ever-decreasing constituency;
- this was his campaign promise: no drilling on federal land
- this suggests his team is really, really in a panic over price of gasoline determining outcome of the midterm elections later this year
- the administration has run out of arrows in the quiver to affect gasoline prices
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