- Biden takes steps to pause sales of oil and gas leases on federal land, cancel the Keystone XL pipeline & expand the government’s fleet of clean-energy vehicles.
- The U.S. oil industry is concerned about limiting access to resources on federal acreage in New Mexico, Wyoming, Alaska and the Gulf of Mexico.
- Industry experts feel it is not good policy to be overly restrictive on federal land.
- That will just move energy production to other countries. We know that we can develop energy in this country responsibly.
A recently released news in the HT website deals with the tight measures taken by Biden administration to pause the sales of oil and gas leases on federal land.
Impact of Biden’s decision on shale gas
Reducing domestic production will raise costs at the pump.
Also ensures international producers, operating with fewer environmental regulations, will meet the global demand for petroleum products.
That scenario is inconsistent with the administration’s choice to rejoin the Paris Accord.
Major shale players support regulation of methane leaks
All the major shale players including Chevron and Pioneer say they support Biden’s plans to increase regulation of methane leaks, reversing former President Donald Trump’s policy.
But anxiety is rising in the fossil fuel industry that it may be in for a sustained period of government pressure.
Gulf of Mexico may feel the heat
“The risks are probably greater in the Gulf of Mexico,” he said on a call with analysts. “If conditions in the U.S. become so onerous that it really disincentivizes investment we’ve got other places we can take those dollars.”
Gulf of Mexico, where leases come up for sale infrequently and projects cost in the billions of dollars, where the largest impact of Biden’s policies may be felt, according to Chevron CEO Mike Wirth.
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Source:HT Auto
