U.S. President Joe Biden is expected to sign an executive order Wednesday to direct federal government agencies to determine the scope of the ban on new drilling on federal land and water, the New York Times reports. cites two sources familiar with the president’s upcoming executive orders.
The move to order federal agencies to weigh the scope of the ban makes President Biden’s 60-day moratorium on oil and gas permits on federal land and water a step further.
Hours after taking office, President Biden’s administration suspended for 60 days the authorization of oil and gas in federal lands and waters, as part of a review of the previous administration’s policies. and the push for green energy to fight climate change.
President Biden’s move provoked harsh reactions from the oil industry.
“Restricting development to federal lands and waters is nothing more than a policy of“ importing more oil. ”Energy demand will continue to rise, especially as the economy recovers, and we can choose to produce that energy here in the United States or entrusting countries hostile to American interests, ”said Mike Sommers, president and CEO of the American Petroleum Institute (API).
“We are prepared to work with the Biden administration to address America’s energy challenges, but impeding American energy will only serve to harm local communities and hinder America’s economic recovery,” he said. point out Sommers.
The largest U.S. oil producers operating in federal lands have years of drilling permits and do not expect them to change much in the short to medium term. However, small independent shale drillers, especially those with a large portion of their operations from federal lands, think the U.S. administration banning the sale of new federal leases could pose an “existential threat.” for their companies.
Some states could also have a much greater impact than others; in New Mexico, for example, 65% of the state’s oil and gas production takes place on federal lands.
By Charles Kennedy for Oilprice.com
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