US President Joe Biden is expected to sign an executive order on Wednesday to ask federal government agencies to set a ban on new drilling on federal land and waters, The New York Times reported, citing two sources familiar with the president’s future orders.
The move to order federal agencies to weigh the ban measure takes President Biden’s moratorium on the oil and gas permit on federal land and water a step further.
A few hours after taking office, President Biden’s administration suspended the oil and gas permit on federal land and waters for 60 days as part of a review of previous administration policies and a push for green energy to combat climate change.
President Biden’s move has drawn harsh reactions from the oil industry.
“Restricting development on federal land and water is nothing more than a policy of ‘importing more oil.’ Energy demand will continue to grow – especially as the economy recovers – and we can choose to produce that energy here in the United States or rely on countries hostile to American interests, “said the president and CEO of the American Petroleum Institute. API), Mike Sommers.
“We are ready to work with the Biden administration on how to address America’s energy challenges, but impeding American energy will only serve to affect local communities and prevent America’s economic recovery,” Sommers said.
The largest US oil producers operating on federal land have had drilling permits for years and do not expect much to change in the short to medium term. However, small independent shale wells, especially those with much of their operations from federal countries, are considered a concern, and some believe the US administration banning new federal lease sales could pose an “existential threat”. for 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 takes place on federal land.
By Charles Kennedy for Oilprice.com
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