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Fracking came up more in last night's VP debate than it did in the presidential debate a couple weeks ago.
A quick thread on what Biden's climate plan says about fracking (and what it doesn't) -- and what it would mean for the U.S. shale industry (1/x)
A quick thread on what Biden's climate plan says about fracking (and what it doesn't) -- and what it would mean for the U.S. shale industry (1/x)
Biden's stance on fracking has been confusing. He was seen promising an environmental activist that he would "end fossil fuel." Then, in Pennsylvania, he said very clearly that he would not ban fracking.
We heard that reiterated by Harris several times last night (2/x)
We heard that reiterated by Harris several times last night (2/x)
Biden's climate plan calls for a ban on new fracking on federal lands, which policy analysts have taken to mean a moratorium on the permits that allow producers to drill on U.S.-owned lands (3/x)
It's true that most fracking in the U.S. is done on private lands.
But the hottest place to drill right now is in the New Mexico portion of the Permian Basin. Unlike Texas, much of that land is owned by either the state or the federal government (4/x)
But the hottest place to drill right now is in the New Mexico portion of the Permian Basin. Unlike Texas, much of that land is owned by either the state or the federal government (4/x)
As of last month, there were more rigs drilling for oil in Eddy and Lea counties in New Mexico than in any other county in the U.S.
According to IHS, the lowest breakeven in the country isn't just in Lea County. It's on *federal land* in Lea County. (5/x)
According to IHS, the lowest breakeven in the country isn't just in Lea County. It's on *federal land* in Lea County. (5/x)
That's particularly important now, with oil prices hovering around $40 a barrel (6/x)
Ever since talk of a frack ban started ramping up at the beginning of the Democratic primary process, US producers have been touting their war chest of permits. This insulates them, they say, from any immediate effects of a moratorium on new permits (7/x)
But investors haven't been so sure. Companies with material exposure to federal lands, like EOG, have seen their stocks lag peers.
In fact, Devon's exposure to federal lands was cited as one of the reasons the company likely made its move to buy WPX a few weeks ago. (8/x)
In fact, Devon's exposure to federal lands was cited as one of the reasons the company likely made its move to buy WPX a few weeks ago. (8/x)
The bigger impact would likely be felt on local and state economies, something groups like the American Petroleum Institute have been extremely vocal about in the last several months. Last year, oil and gas made up almost 40% of New Mexico's state budget. (9/x)
That's why, in New Mexico, oilfield workers are hanging onto hope that Governor Michelle Lujan Grisham, a Democrat, can do something to exempt her state from such a ban. (10/x)
The president of Concho Resources even hinted at rumors that she could have a cabinet role in a Biden administration on a recent investor call (11/x)
A report last year said Lujan Grisham had promised to seek an exemption from any future frack ban. More recently, however, her office said that it was too early to comment on a ban that doesn't yet exist. (12/x)
tldr: Biden isn't calling for a nationwide ban on fracking, which would be difficult to do without an act of Congress anyway.
But a ban on new fracking on federal lands would still have a significant impact on places like southeastern New Mexico (13/13)
But a ban on new fracking on federal lands would still have a significant impact on places like southeastern New Mexico (13/13)
