US President Joe Biden is expected to sign an executive order on Wednesday directing federal government agencies to determine the extent of the ban on new drilling in federal lands and waters, reports The New York Times, citing two sources familiar with the president’s upcoming executive orders.
The move to order federal agencies to assess the extent of the ban takes President Biden’s 60-day moratorium on oil and gas licenses on federal land and waters a step further.
Hours after taking office, President Biden’s government suspended oil and gas licenses on federal land and waters for 60 days, as part of a review of the previous government’s policies and the push for green energy to combat climate change .
President Biden’s decision drew harsh reactions from the oil industry.
“Restricting development on federal land and waters is nothing more than a ‘import more oil’ policy. Demand for energy will continue to increase – especially as the economy recovers – and we can choose to produce that energy here in the United States or depend on external resources from countries hostile to American interests, “said the president and CEO of the American Petroleum Institute (API), Mike Sommers.
“We are ready to engage with the Biden government on ways to address America’s energy challenges, but preventing American energy will only serve to harm local communities and hamper America’s economic recovery,” noted Sommers.
The largest U.S. oil producers operating on federal land have drilling licenses for years and do not expect much change in the short or medium term. Small independent shale drillers, however, especially those that have a large part of their operations coming from federal lands, are concerned, and some think that the US government banning new federal lease sales could pose an “existential threat” to their companies.
Some states may also be much more affected than others – in New Mexico, for example, 65% of the state’s oil and gas production occurs on federal land.
By Charles Kennedy for Oilprice.com
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