[Text/Observer Network Zhou Yibo]
According to the " New York Times ", on the evening of April 15th local time, the Biden administration announced that it would re-sell new oil and natural gas drilling leases on public lands. , but will raise royalties, the first time the U.S. has raised them in more than a century.
The U.S. Department of the Interior said in a statement that it plans to auction drilling leases for 145,000 acres of public land (approximately 586.8 square kilometers) in nine states next week. This is also the first time the Biden administration has sold new land on public land. Fossil fuel drilling leases.
reported and analyzed that Biden is trying to show voters that he is working hard to increase domestic oil supply in the United States when global oil prices soar due to the military conflict between Russia and Ukraine. However, it also violates Biden's signature campaign promise to prioritize reducing the use of fossil fuels.
Screenshot of the New York Times report
The New York Times reported that when Biden first became president, he issued an executive order prohibiting the sale of new drilling leases on public lands. The order will remain in place until the U.S. Department of the Interior releases a comprehensive report on the status of federal oil and gas drilling programs.
Last November, the U.S. Department of the Interior released a report recommending an overhaul of rents and royalties for U.S. onshore and offshore drilling.
The report noted that the U.S. federal government lost an estimated $12.4 billion in revenue from drilling leases on public lands between 2010 and 2019 because royalties have not been raised in a century.
Although Democrats had pushed for legislation to increase the royalty rate from 12.5% to 18.75%, it would only bring about $2.5 billion in revenue to the U.S. federal government around 2030.
On the evening of April 15th local time, the Biden administration announced that would re-sell new oil and natural gas drilling leases on public lands on the basis of increased royalties. The U.S. Department of the Interior said it plans to auction drilling leases for 145,000 acres of public land (approximately 586.8 square kilometers) in nine states next week.
The New York Times analyzed that while opening up new land for drilling, requiring companies to pay more for drilling seems to be an attempt to maintain a balance between lowering natural gas prices and combating climate change.
And, although Biden took office with the most ambitious climate change agenda ever, his climate policy has largely stalled due to congressional inaction.
The New York Times pointed out that Biden’s announcement of a new drilling lease sale plan also violated one of his signature campaign promises-Biden had assured environmentalists that he would prioritize reducing the use of fossil fuels.
In February 2020, Biden also publicly stated to voters in New Hampshire , "By the way, stop drilling on federal lands, that's it."
US President Biden Source: Visual China
The New York Times stated that the Biden administration’s plan is just one of a series of measures Biden is taking to try to ease voters’ anxiety about rising gasoline prices.
On March 31, local time, Biden announced the release of the largest-ever U.S. emergency oil reserve and strongly recommended that oil companies mine more oil to bring down the soaring gasoline prices during the Russia-Ukraine conflict.
Biden delivered a speech at the White House . He first emphasized that the rise in oil prices was affected by Russia's "invasion" Ukraine , and then announced that starting in May, the United States will release 1 million yuan a day from the strategic petroleum reserve for 6 consecutive months. barrels of crude oil.
On top of that, the Biden administration also struck a deal to increase natural gas exports to Europe and called on Congress to pass legislation that would force oil companies to drill for fossil fuels under leases.
However, the New York Times believes that these measures have had a mediocre response to the US oil industry.
Jeff Eshelman, chief operating officer of the Independent Petroleum Association of America, said the Biden administration’s announcement to “resell fossil fuel drilling leases on public lands” is a “complicated message” and “strangely illogical” ( strangely incoherent).
“This administration has been begging foreign countries for more oil, accusing U.S. energy producers of sitting on leases and driving up prices,” Eshelman said. “Now, under pressure, the administration has announced a lease deal and significantly raised the price.” Royalties, which will add uncertainty to drilling plans in the next few years.”
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