In a clear win for American energy producers, the Senate Energy & Natural Resources Committee advanced the License to Drill Act (S. 5039 / H.R. 7831) on July 29, 2026, with unanimous and broad bipartisan support. The American Exploration & Production Council (AXPC) immediately praised the move and urged swift full Senate passage to the President’s desk.
While the AI-generated 007 of the Permian does not look like me, at least I can get cleaned up for an interview!
This is the “License to Drill”—a practical, industry-funded tool that gives U.S. exploration and production (E&P) companies greater certainty to develop oil and natural gas on federal lands. Sponsored in the Senate by Chairman Mike Lee (R-UT) and in the House by Rep. Mike Kennedy (R-UT), the bill reauthorizes the Bureau of Land Management’s (BLM) Permit Processing Improvement Fund (PPIF) through fiscal year 2037.
The PPIF, first created under the Energy Policy Act of 2005, collects fees on Applications for Permits to Drill (APDs)—currently more than $12,500 per application, indexed to inflation—and directs 100% of those proceeds to priority BLM field offices.
The money pays for staffing, environmental reviews, interagency coordination, leasing, inspections, and other energy-related work. It is entirely industry-funded, not taxpayer dollars. Without reauthorization, the program would expire in September 2026, risking backlogs just as investment in federal lands hits historic levels.
The House already passed H.R. 7831 with strong bipartisan support in June 2026. Record-setting BLM lease sales generated more than $4.1 billion in the second quarter alone, underscoring the growing role of federal lands in U.S. energy supply.
What This Means for the U.S. Consumer
Faster, more predictable permitting means more domestic oil and natural gas can reach markets sooner. Greater supply improves energy security and puts downward pressure on prices at the pump and for home heating and electricity. When federal lands—home to roughly 10% of U.S. oil and natural gas production—face permitting delays, consumers ultimately pay through higher costs and greater exposure to global disruptions.
A country that encourages responsible drilling on its own lands tends to enjoy lower energy costs. The License to Drill Act is a common-sense step in that direction: it keeps the permitting system functional without new mandates or taxpayer subsidies.
What This Means for U.S. Exploration and Production Companies
For independent and major producers operating on public lands in states such as Utah, New Mexico, North Dakota, Colorado, Montana, and others, the Act delivers permitting certainty. Companies pay the fees; those fees stay in the system to process permits efficiently. That predictability supports capital investment, job creation in rural communities, and the ability to bring more American molecules to market—whether for domestic use or export as LNG and refined products.
AXPC CEO Anne Bradbury put it clearly: “At a time when investment in federal lands is reaching historic levels, ensuring BLM has the resources needed to process permits efficiently is critical to securing energy affordability… We urge the Senate to swiftly pass this critical legislation and send it to the President’s desk.” Similar support came from the Independent Petroleum Association of America, Western Energy Alliance, and state associations across the West.
What This Means for Investors
Investors should view the bipartisan advance of the License to Drill Act as a constructive signal for U.S.-focused E&P equities and the broader energy sector. Reduced regulatory friction on federal acreage supports production growth, cash-flow visibility, and returns of capital. Companies with meaningful federal-land exposure or strong Permian and other domestic positions stand to benefit from a more reliable operating environment.
Today’s earnings reports from the two largest U.S. majors illustrate the advantage of a domestic-friendly policy backdrop.ExxonMobil reported second-quarter 2026 earnings of $14.5 billion ($3.48 per share), with adjusted earnings of $14.7 billion ($3.52 per share).
Cash flow from operations reached $23.6 billion and free cash flow $17.2 billion. The company returned $9.4 billion to shareholders. Upstream production hit its highest level in more than two decades (excluding Middle East disruptions), driven by record Permian output of more than 1.8 million oil-equivalent barrels per day.
Chevron reported second-quarter 2026 earnings of $12.1 billion ($6.11 per diluted share), with adjusted earnings of $12.0 billion ($6.06 per share). Worldwide production rose 20% year-over-year, led by record U.S. production. Return on capital employed reached 21.4%.
Contrast that with BP’s announcement today that it is putting its entire North Sea business up for sale after 60 years of operations.
The assets produced about 117,000 barrels of oil equivalent per day in 2025 and employ roughly 1,100 people. New CEO Meg O’Neill framed the decision as portfolio focus on higher-value opportunities, stating the business “will be better positioned as part of another company.” Critics and industry observers point to the UK’s high Energy Profits Levy (effectively a 78% tax rate in some analyses) and policy uncertainty as key drivers accelerating the exit of supermajors from the UK Continental Shelf.
The difference is stark.
U.S. policy that reauthorizes industry-funded permitting tools and supports federal leasing is enabling record domestic production and robust earnings at ExxonMobil and Chevron. In the UK, punitive taxation and regulatory headwinds are prompting asset sales and capital flight.
A nation that encourages drilling—through efficient permitting, competitive fiscal terms, and access to resources—attracts investment, grows supply, creates jobs, and delivers lower energy costs to its citizens.
The License to Drill Act is a concrete, bipartisan example of that principle in action. Full Senate passage would lock in the advantage for American producers and consumers alike.
So while we had a little fun pretending that a rig hand could play James Bond, he is unemployed in the UK at this moment. So, we just might end up with our own “Bond, Midland, Bond”.
We are set for some great updates coming through on The Crude Truth Substack and Podcast.
If you have any questions, please hit me up on LinkedIn: https://www.linkedin.com/in/reytrevinoiii/
Also, Pecos Operating Website: https://pecosoperating.com/
Appendix: Sources and Links
AXPC Press Release, July 29, 2026: “AXPC Praises Senate Energy & Natural Resources Committee for Advancing License to Drill Act with Bipartisan Support, Urges Swift Senate Passage”
https://axpc.org/education-resource/axpc-praises-senate-energy-natural-resources-committee-for-advancing-license-to-drill-act-with-bipartisan-support-urges-swift-senate-passage/Congress.gov: H.R.7831 – License to Drill Act (119th Congress)
https://www.congress.gov/bill/119th-congress/house-bill/7831Rep. Mike Kennedy Press Release, March 20, 2026: “Rep. Kennedy Leads Bill to Keep American Energy Permitting on Track”
https://mikekennedy.house.gov/media/press-releases/rep-kennedy-leads-bill-keep-american-energy-permitting-trackRigzone, July 31, 2026: “Industry Groups Welcome SENRC Approval of License to Drill Act”
https://www.rigzone.com/news/industry_groups_welcome_senrc_approval_of_license_to_drill_act-31-jul-2026-184264-article/Western Energy Alliance, July 29, 2026: “Energy Permitting Reauthorization Clears Key Senate Hurdle”
https://www.westernenergyalliance.org/2026/07/29/energy-permitting-reauthorization-clears-key-senate-hurdle/ExxonMobil Q2 2026 Results, July 31, 2026
https://investor.exxonmobil.com/company-information/press-releases/detail/1208/exxonmobil-announces-second-quarter-2026-resultsChevron Q2 2026 Results, July 31, 2026
https://www.chevron.com/newsroom/2026/q3/chevron-reports-second-quarter-2026-resultsBBC News, July 31, 2026: “BP puts North Sea business up for sale”
https://www.bbc.com/news/articles/c62q7w003lroAdditional reporting on BP North Sea sale and UK tax environment: Reuters, Telegraph, and related coverage dated July 31, 2026.
Since the permit fees pay for government staffing, why not reduce the agencies staff to just that level supported by permitting and reduce the federal budget. Any bureaucrat that says you can’t do that should he the first to get terminated as no longer needed. Any politician who says that needs to be recalled.
This is the way it should be!