The Biden administration has temporarily suspended oil and gas leasing and permitting on federal lands and waters while it evaluates the legal and policy implications of the program, according to a Department of Interior memo.
The move appears to be a first step in delivering on newly sworn-in President Joe Biden’s campaign promise to ban all new federal drilling permits, part of his wider agenda to combat global climate change.
The order was welcomed by environmentalists and derided by the oil and gas industry, whose largest onshore drilling companies have stockpiled permits in anticipation of a change in federal policy.
U.S. federal lands and waters account for close to 25% of the nation’s crude oil output, making them a big contributor to energy supply but also to America's greenhouse gas emissions. Biden’s predecessor Donald Trump had sought to maximize production of oil, gas and coal on federal acreage, and routinely downplayed threats from global warming.
In the order, dated Jan. 20 and seen by Reuters Jan. 21, Biden’s Acting Interior Secretary Scott de la Vega suspended the authority of agency offices to issue fossil fuel authorizations, revise land management plans, approve ground-disturbing activities, and more.
During the pause, activities may be approved by certain agency officials in Washington, the memo said.
The order does not limit existing operations, it said.
Center for Western Priorities Policy Director Jesse Prentice-Dunn said in an email “the Biden administration is rightfully attempting to take stock of the damage and make sure the agency is following the law.”
Oil and gas industry trade groups American Petroleum Institute (API) and Western Energy Alliance swiftly issued statements condemning the pause.
“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,” API President Mike Sommers said.
Department of Interior officials did not immediately return a request for comment.
Recommended Reading
Matador May Tap Its Haynesville ‘Gas Bank’ if Prices Stabilize
2024-10-24 - The operator holds 8,900 net Haynesville Shale acres and 14,800 net Cotton Valley acres in northwestern Louisiana, all HBP, that it would drill if gas prices stabilize—or divest for the right price.
E&P Highlights: Dec. 30, 2024
2024-12-30 - Here’s a roundup of the latest E&P headlines, including a substantial decline in methane emissions from the Permian Basin and progress toward a final investment decision on Energy Transfer’s Lake Charles LNG project.
EY: Three Themes That Will Drive Transformational M&A in 2025
2024-12-19 - Prices, consolidation and financial firepower will push deals forward, says EY.
E&P Highlights: Dec. 16, 2024
2024-12-16 - Here’s a roundup of the latest E&P headlines, including a pair of contracts awarded offshore Brazil, development progress in the Tishomingo Field in Oklahoma and a partnership that will deploy advanced electric simul-frac fleets across the Permian Basin.
Classic Rock, New Wells: Permian Conventional Zones Gain Momentum
2024-12-02 - Spurned or simply ignored by the big publics, the Permian Basin’s conventional zones—the Central Basin Platform, Northwest Shelf and Eastern Shelf—remain playgrounds for independent producers.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.