US to Resume Oil and Gas Drilling on Public Lands Despite Biden Campaign Promise

A 3D-printed oil pump jack sits on dollar bills in this illustrative image, April 14, 2020. REUTERS/Dado Ruvic/Illustration

WASHINGTON, April 15 (Reuters) – The Biden administration said on Friday it had resumed plans for oil and gas development on federal land, a move that could break a promise Joe Biden made during his campaign for president.

The plan calls for the government to lease fewer acres for drilling than initially proposed, charge higher royalties to oil and gas companies and assess the climate impact of developing the acres.

The proposal was quickly denounced by several environmental groups, with one calling it “a reckless failure of climate leadership.” Oil industry groups praised the move but said it did not go far enough.

The Interior Department’s announcement, made Friday night before a holiday weekend, is the latest move to reform the federal oil and gas leasing program since Biden took office in January 2021. has faced continued pressure to address high energy prices spurred by the economic recovery from the pandemic and Russia’s invasion of Ukraine.

The Democrat had pledged several times during his presidential campaign to stop federal drilling auctions, but that effort was stymied by a court challenge from Republican-led states.

During a campaign event in Hudson, New Hampshire, in February 2020, Biden told the audience, “And by the way, no more drilling on federal land, period. Period, period, period.”

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Friday’s announcement would make approximately 144,000 acres available for oil and gas drilling through a series of lease sales, an 80% reduction in the footprint of land that had been under evaluation for lease, the Interior Department said. it’s a statement.

It would also require companies to pay royalties of 18.75% of the value of extracted oil and gas products, up from 12.5% ​​previously.

“The way we manage our public lands and waters speaks volumes about what we value as a nation,” said Interior Secretary Deb Haaland, adding that the measure “would begin to reset how and what we consider to be the highest and best use of the Americans.” ‘ resources for the benefit of all present and future generations”.

The agency will issue final environmental assessments and notices of sale for upcoming oil and gas lease sales beginning next week, including ensuring tribal consultation and broad community participation, the Interior Department added.

The Center for Biological Diversity, an environmental group, criticized the Biden administration’s decision.

“The Biden administration’s claim that it must keep these lease sales is pure fiction and a reckless failure of climate leadership,” said Randi Spivak, director of public lands for the group. “It is as if they are ignoring the horror of firestorms, floods and mega-droughts, and accepting climate catastrophes as if nothing had happened.”

The move was praised by the energy industry as a step in the right direction.

“To truly unleash American energy, the Biden Administration must continue to conduct ongoing lease sales under the Minerals Leasing Act, issue permits more expeditiously, and provide ongoing regulatory certainty,” said Anne Bradbury, director of the American Council. of Exploration and Production, whose members include ConocoPhillips (COP.N), Pioneer Natural Resources (PXD.N) and Chesapeake Energy (CHK.O).

Reporting by Katanga Johnson and Nicola Groom Editing by Lisa Shumaker

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