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US President Joe Biden is expected to sign an executive order on Wednesday ordering federal government agencies to determine the extent of the ban on further drilling on federal lands and waters, The New York Times reports, citing two sources close to the president’s upcoming executive orders. .
The move to order federal agencies to weigh in on the extent of the ban pushes President Biden’s 60-day moratorium on oil and gas permits on federal lands and waters even further.
Hours after taking office, President Biden’s administration suspended oil and gas licenses on federal lands and waters for 60 days, as part of a review of the previous administration’s policies and promotion green energy to fight climate change.
President Biden’s decision drew strong reactions from the oil industry.
“Restricting development on federal lands and waters is nothing more than a policy of ‘importing more oil.’ Demand for energy will continue to rise – especially as the economy recovers – and we can choose to produce that energy here in the United States or to depend on foreign countries hostile to American interests, ”said Mike Sommers, president and CEO of the American Petroleum Institute (API).
“We are ready to engage in dialogue with the Biden administration on ways to address America’s energy challenges, but preventing American energy will only serve to harm local communities and hamper the economic recovery of the United States.” , Sommers noted.
America’s largest oil producers operating on federal lands have years of drilling licenses and don’t expect much to change in the near to medium term. Small independent shale drillers, especially those with much of their operations coming from federal lands, are worried and some believe the US administration banning new sales of federal leases could pose an “existential threat” to their businesses.
Some states could also be significantly more affected 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 Oil chauffage
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