Battle Lines Drawn Over Potential Ban on New Oil & Gas Drilling on Federal Land

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Researched by Industrial Info Resources (Sugar Land, Texas)--President Joe Biden is poised to issue an order that would suspend new oil and gas leasing on federal land as part of his environmental policy, according to news reports, but the battle lines over the move appear to be already drawn. The Department of Interior already has ordered a 60-day pause on oil and gas permitting on federal lands. But such restrictions amount to no less than an "import more oil" policy, warns the American Petroleum Institute (API).

The Wall Street Journal and The Associated Press (AP) reported that Biden was expected to issue an executive order Wednesday that would suspend new oil and gas leasing on federal land, to allow time for officials to review the impact of oil and gas drilling on the environment and climate. On Biden's first day of office, the Department of Interior ordered a 60-day suspension on issuing new drilling permits and leasing on federal land unless they are approved by the department's senior leaders, according to The Wall Street Journal. Biden pledged during his presidential campaign to curb drilling on federal land.

The moratorium was unlikely to affect existing leases, the AP said.

Following the Department of Interior's move last week to pause leasing for 60 days, American Petroleum Institute President and Chief Executive Officer Mike Sommers said, ""Restricting development on federal lands and waters is nothing more than an 'import more oil' policy. 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 rely on foreign countries hostile to American interests. With this move, the administration is leading us toward more reliance on foreign energy from countries with lower environmental standards and risks to hundreds of thousands of jobs and billions in government revenue for education and conservation programs."

The API has said U.S. oil imports would increase by estimated 2 million barrels per day by 2030 under a ban on development on federal lands.

Energy currently produced on federal lands and waters accounts for 12% of U.S. natural gas production and nearly a quarter of U.S. oil production, the API said.

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