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Biden administration suspends federal drilling program due to Reuters promotion of climate change

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© Reuters.File Photo: Joe Biden becomes 46th President of the United States

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Nicola Groom and Jennifer Hiller

(Reuters)-US President Joe Biden’s latest edition of a series of rapid fire orders aimed at fighting climate change and quelling the US fossil fuel industry, oil and gas in federal land and water. Temporarily suspended permission.

The order appeared to be the first step in fulfilling Biden’s newly promised campaign commitment to permanently ban new drilling on federal acreage. Federal leasing accounts for nearly 25% of the country’s production and contributes significantly not only to energy supply, but also to US greenhouse gas emissions.

Biden’s predecessor, Donald Trump, sought to maximize oil, gas and coal production in the federal planted area, routinely downplaying the threat of global warming.

The outage was welcomed by environmentalists but ridiculed by the oil and gas industry struggling to secure the future under the new administration, which vowed to prioritize combating global warming. ..

According to the Interior Ministry’s memo, the 60-day suspension deprives Interior Ministry agencies and bureaus of the authority to issue drilling leases or permits, and the government will consider the legal and policy implications of the Federal Mineral Leasing Program. The instructions do not limit existing operations, he said.

Following Thursday’s news, the share of US shale producers exposed to federal land fell.

EOG Resources Inc (NYSE :) and Cimalex Energy Co (NYSE :) closed 8.6%, Devon energy On the New York Stock Exchange, Corp (NYSE :) fell 7.9% and Occidental Petroleum Corp (NYSE :) fell 6.4%.

“This is a hydraulic fracturing ban,” Anne Bradbury, CEO of the American Exploration & Production Council, an drilling industry group, said in an interview. “For 60 days alone, it’s a really aggressive move.”

Many of the largest land drilling companies stockpiled permits https://www.reuters.com/article/idUSKBN29Q1S5 in anticipation of changes in federal policy prior to Biden’s elections and isolated them from the ban.

The order came shortly after numerous other enforcement measures aimed at combating climate change, including the US re-engagement in the Paris climate change agreement and the revocation of Canada’s permission to keystone XL oil pipelines. It was.

Work and climate

“The Biden administration is trying to get a legitimate grasp of the damage and ensure that the authorities are in compliance with the law,” said Jesse Prentice-Dunn, policy director for the Center for Western Priorities.

However, the American Petroleum Institute and the Western Energy Alliance, a major industry group, have swiftly issued a statement condemning the suspension and seeing it as a threat to the economy.

“With this move, the administration is leading us towards more reliance on foreign energy,” said API President Mike Summers.

Federal drilling restrictions have the greatest impact on major western producing countries such as New Mexico and Wyoming. These states rely on income from a share of mining royalties.

Restricting development “risks more than 60,000 jobs and $ 800 million to support public schools, first responders, and medical services,” the New Mexico Oil and Gas Association said in a statement. Stated.

White House officials did not immediately return a request for comment.

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Biden administration suspends federal drilling program due to Reuters promotion of climate change

https://www.investing.com/news/stock-market-news/biden-administration-pauses-federal-drilling-program-in-climate-push-2395613 Biden administration suspends federal drilling program due to Reuters promotion of climate change

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