Posted on 04/15/2022 9:50:45 PM PDT by SeekAndFind
Following a punishing surge in natural gas prices this past week (in defiance of cooling demand for heat as the spring arrives, and despite China's ongoing lockdowns, which have helped to undercut the prices of all the commodities that China needs...a phenomenon about which China hawk Kyle Bass has some interesting thoughts), President Biden has finally decided to throw in the towel, and break one of his top campaign promises to the environamentalist wing of the Democratic Party.
In a report that arrived at almost exactly 1700ET on Good Friday (also the start of Passover), the NYT revealed that the president has decided to lift the ban (initiated by executive fiat) on selling leases for new oil and gas drilling on public lands. But there's a small catch: he's also raising the federal royalties that companies must pay to drill.
Still, the administration plans to open up 145,000 acres of public lands in nine states to oil and gas leasing next week.
The Interior Department said in a statement that it planned to open up 145,000 acres of public lands in nine states to oil and gas leasing next week, the first new fossil fuel permits to be offered on public lands since President Biden took office.
This represents the abandonment of one of Biden's "signature" environmental policies (also: it's a capitulation to more conservative and moderate Democrats, who have been upping the pressure on Biden to do more to bolster oil and gas production). So far, his administration has relied mostly on SPR releases, allowing more ethanol in gas during the summer months.
The move comes as President Biden seeks to show voters that he is working to increase the domestic oil supply as prices surge in the wake of the Russian invasion of Ukraine. But it also violates a signature campaign pledge made by Mr. Biden as he sought to assure climate activists that he would prioritize reducing the use of fossil fuels.
"And by the way, no more drilling on federal lands, period. Period, period, period," Mr. Biden told voters in New Hampshire in February 2020.
However, since the administration is raising the royalty rate it demands from producers who drill or frack on public lands, oil and gas companies will still face higher costs on the new leases.
In opening up the new public lands for oil and gas permitting, the Interior Department will raise the royalty rates that companies must pay to the federal government from 12.5 percent of their profits to 18.75 percent, an increase that could bring in billions of dollars of new revenue.
Already, environmental activists are slamming Biden for his 'recklessness' and for abdicating the Democrats' "climate leadership".
“The Biden administration’s claim that it must hold these lease sales is pure fiction and a reckless failure of climate leadership,” said Randi Spivak, director of the public lands for Center for Biological Diversity. “It’s as if they’re ignoring the horror of firestorms, floods and megadroughts and accepting climate catastrophes as business as usual.”
Meanwhile, everybody else will just be happy to see lower prices at the pump...although it will take months, perhaps years, for the new supply to come on line and have an impact on the US market.
It won’t help, when there is no assurance of the land being taken back arbitrarily.
The USA produces 1.4Million bbl/day Less of oil since Brandon stole the office of president. Please explain to me how he plans on making up for that!
The democrats will slow walk any actual drilling let alone adding pipelines to distribute it and expand or build new oil refineries.
No...It’s the cut that the government will get that drillers will object to. Raised from 12% to almost 19%. Really?? Screwing America is Brandon’s platform.
I’m betting that VERY soon, Germany will approve and let it flow in Nord 2.
Drill Brandon, drill.
Kabuki theater for the masses
Not to mention natural gas is often a co product of oil drilling. Do we know how much less NG is being produced per day since Brandon was installed?
they still slow walk permitting process — and oil companies remain skeptical of making investment in long term projects while this regime rules.
Biden didn’t do anything. I strongly doubt he knows what day it is. Someone is worried about the poll numbers and hopes this may help.
This administration has done the exact opposite of what should be done on every issue.
Exactly right. Who would trust this bastard on anything. His word is as slippery as a bar of soap in the tub. What corporation would invest under capricious rules that change at his whim every 15 minths?
Yes more land is up for lease at higher costs increased restrictions and well, you know we are not pipeline friendly, so drill all you want, but you ain’t moving a drop off the leases - which means you, Mr Big Oil, are responsible for price hikes at the pump.
Leases aren’t worth Spit unless you get Drilling Permits.
Yes, why would you risk spending money and time to start up an oil drilling operation under this admin?
They are only going to make it impossible to actually get anywhere, and will pull the rug out from under you anyway.
While he closed another 80% of the lease lands to it. Who says what he has offered has any oil under it. Typical Communist lie.
Screw that. By the time the leases are fully executed and exploratory drilling can commence, we will have a new President. Remove all restrictions NOW for drilling, transport and refining oil. Put those people back to work and start flooding the market with cheap oil. Also, any restrictions on the supply chain remove immediately. Get the prices of gas and food down and we can be out of this mess within a year.
Maybe he could send out Ginger Goebbels to lecture us on the 9,000 leases already out there and not being explored.
/massive eyeroll
Euro’s need to demand we open up the other 80% & reverse all other restrictions Biden has imposed. Scream at that lease rate increase, too. Pressure from all angles...
Maybe the administration can subsidize oil companies to drill?
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