A recent announcement from the U.S. Bureau of Land Management (BLM) to streamline the permit process for oil companies interested in drilling on land owned and managed by the federal government and the Indian tribes of the United States. New online methods are expected to cut the time needed for these permits by a considerable amount, allowing energy companies to achieve faster results in the regulatory environment. Accurate oil and gas reserves evaluation services are essential to ensure the profitability of these drilling efforts. Here are some key points regarding the upcoming changes to the federal lands drilling permit process.
Historically Low Application Rates May Have Spurred Move
One factor that may have influenced the BLM to alter its permit processes is the extreme downturn in applications over the past few years. Some estimates indicate that 2015 applications for permits were down 40 percent as compared to the historical average. Low energy prices and expanding production in already established areas are blamed for this slowdown in applications for drilling leases in public areas. The new policies established by the BLM are expected to reduce costs and increase applications from companies interested in drilling leases for federally owned lands and Native American lands in the United States.
Traditionally, permits to drill on public and Indian land have taken the better part of a year to move through the approval system. In 2015, for example, permits required an average of 220 days from start to finish. It is expected that going online will allow 90 percent or more of applications to be processed and completed within 115 days, a significant reduction in the timeframe required for these permits in the past. By moving the application process online, the BLM also hopes to reduce the burden of paperwork and to make the leasing of public lands more attractive to energy companies.
New Challenges in the Oil Business
With increasing attention being paid to advanced shale oil extraction techniques and drilling strategies that can bring new life to old oil wells, the need to lease federal land has fallen considerably in recent years. Many industry experts view the changes to the leasing process of the BLM to be a case of too little, too late for the agency and the funds traditionally derived from these lease arrangements. The new paradigms currently shaping the energy industry have put a premium on advanced training and making the most of available resources to increase efficiency and ensure profitability now and in the future.
The Importance of Training Courses
Investing in petroleum economics courses and training programs for key employees can help oil and gas energy companies maintain a viable position even in challenging economic conditions. These courses can provide added insights into the right times to expand operations, the best approaches to take in the field and the best overall strategies for growth in the current market. Oil and gas risk management courses can deliver the knowledge and skills needed to determine the most cost-effective exploration strategies and the best use of your corporate resources in the competitive marketplace. These advanced courses can provide the background needed to determine whether oil leases on public lands are worth the time and effort for your business.
Taking steps to identify geological risks and to maximize profits in shale oil drilling operations can help modern energy companies enjoy greater stability even during difficult market conditions. Specialized courses in risk analysis and prospect evaluation are ideal ways to provide your employees with the tools they need to succeed in the field. By ensuring that your key staff members are prepared for the challenges ahead, you can enjoy greater productivity and profitability in the modern oil and gas industry.