• About
  • Advertise
  • Careers
  • Write for us
  • Contact
  • Terms of service
Friday, May 20, 2022
The Millennial Source
TMS
Home WORLD

Biden has suspended oil drilling on public lands. What’s next?

byChris Woods
March 30, 2021
in WORLD
Biden has suspended drilling on public lands. What’s next?

Source: Angus Mordant, Reuters

Share on FacebookShare on TwitterShare on Linkedin
However, many coastal states that rely on oil and natural gas are unlikely to welcome the administration’s actions.

One of President Joe Biden’s campaign promises as a presidential nominee was to take a new approach to energy policy. As president, one of the Biden administration’s first actions was a 60-day moratorium on drilling on federal lands.

In a further push toward green energy, Deb Haaland, Biden’s secretary of the interior, paused new oil and natural gas leases offshore and on public land, extending the moratorium to one year. The pause halts leasing of fossil-fuel rich areas so the administration can effectively measure the environmental impact such drilling has on the local environment.

However, many coastal states that rely on oil and natural gas are unlikely to welcome the administration’s actions.

Moratorium explained

Biden’s moratorium comes at a time when the Democratic Party wants to push the country toward green energy. The current president campaigned on the promise of cutting the United States’ reliance on fossil fuels while increasing the number of jobs produced by the green energy industry.

The actions Biden took on the first day of his presidency were a direct response to those of former-President Donald Trump. Before leaving office in January 2021, the Trump administration went on a last-minute selling-spree of federal land leases, granting private companies access to areas of the country that had been protected for generations. 

In an attempt to tap into one of the last unspoiled resources before Biden took office, the Trump administration held auctions for oil and gas leases in Alaska’s Arctic National Wildlife Refuge. Capping off one of the most significant environmental protection rollbacks in a presidency, Trump hoped to raise close to US$1 billion in revenue.

In reality, though, the auctions generated less than US$15 million in leases. Most of this is due to the pressure conservation groups applied to financial institutions, which ultimately resulted in none of the big oil companies putting in bids.

Biden and Democrats on Capitol Hill hope to put together legislation that will guarantee protections for these public lands well into the future.

Backlash from both sides of the aisle

Though Biden and many congressional Democrats are on the same page, the speed and timing of the ban has worried many state and federal leaders across the country.

After Biden released his plan placing a moratorium on leases for fossil fuel excavation, four House Democrats from Texas sent a letter expressing their alarm at the timing of the ban. 

“A federal ban for any period of time will certainly imperil hundreds of thousands of jobs, entire communities, and billions of dollars in royalty revenues to the Federal Treasury,” they wrote, stressing the importance of rebuilding the economy as the pandemic comes to an end.

Louisiana politicians have also pressured the president. As a large producer of natural gas and oil, the state relies on tax revenue produced by offshore drilling in the Gulf of Mexico. 

Republican Senator Bill Cassidy said in a statement, “Biden’s executive orders are counterproductive. They eliminate jobs and send them overseas to countries with worse environmental standards, increasing global emissions.” 

Governor John Bel Edwards, a Democrat, also disagreed with Biden’s policies, but he approached the situation less confrontationally than his Republican counterparts. 

Louisiana Natural Resources Secretary Thomas Harris explained that Edwards was making his case to Biden by “arguing. He’s working it every day. He’s constantly calling me looking for new ammunition.” 

Edwards’s approach, however, was not enough for Republicans in the state and around the country. 

Jeff Landry, Louisiana’s Attorney General, led a 13-state lawsuit against the Biden administration’s leasing ban, claiming the moratorium “impacts and harms Louisiana by reducing revenue and royalties from federal oil and gas leases.” 

The lawsuit added, “Biden’s Executive Orders abandon middle-class jobs at a time when America needs them most and put our energy security in the hands of foreign countries.”

States like New Mexico also have budgets that heavily rely on the oil and gas industry, but they may not feel the effects immediately. 

More than 54% of oil and gas revenue is produced on federal lands, Ryan Flynn, the president and chief executive officer of New Mexico Oil & Gas Association, claimed. Though the state would not likely feel the effects of the moratorium this year, Flynn expressed the importance of renewing federal leases. 

“We need to be consistently bringing new production online in order to sustain the pace of [previous] production,” he told state officials.

Biden’s plan addresses the job losses and tax revenue decrease, at least theoretically. 

“A key plank of our Build Back Better Recovery Plan is building a modern, resilient climate infrastructure and clean energy future that will create millions of good-paying union jobs,” he said in an address after signing executive orders addressing climate change on January 27. “Not 7, 8, 10, 12 dollars an hour, but prevailing wage and benefits.” 

With new green jobs and wages will come additional tax dollars, but with so many states relying on oil and natural gas, the speed at which Biden unveils these jobs will likely play an important part in whether Democrats are able to stay in power.

Have a tip or story? Get in touch with our reporters at tips@themilsource.com

Like TMS? Subscribe to our free daily newsletter

Related

Tags: Longer readNorth AmericaPolitics
ShareTweetShare

Latest Posts

SEC Wall Street

The US SEC investigates Wall Street over use of unapproved messaging apps

May 19, 2022
US recession

There is a “very, very high risk” of a US recession, says Goldman Sachs Chairman Lloyd Blankfein

May 17, 2022
Philippines

US, China, Russia congratulate Ferdinand “Bongbong” Marcos Jr. on Philippine election win

May 13, 2022

Securing 1,416 votes, former security chief John Lee is now Hong Kong’s new leader

May 9, 2022

What you need to know about the Philippine presidential election right now

May 9, 2022

US hikes rates by half-percentage point, rules out bigger future rate increases

May 5, 2022

What is the US Supreme Court abortion law leak, and why does it matter?

May 4, 2022

What you need to know about Pelosi’s secret trip to Kyiv

May 2, 2022

Warren Buffett is on a spending spree putting US$41 billion to work this quarter

May 2, 2022

SUBSCRIBE TO THE TMS NEWSLETTER

By providing your email, you agree to our Privacy Policy

The Millennial Source Ltd. 2021

No Result
View All Result
  • Your daily briefing
  • About us
  • Explore
    • Startups
    • Climate change
    • Tech giants
    • Crypto
    • The future of work
    • Banking giants
    • Economy
  • Lifestyle
  • TMS archives
  • Write for us
  • Contact
  • Privacy Policy & Terms

© 2022 The Millennial Source Ltd.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

We are using cookies to give you the best experience on our website.

You can find out more about which cookies we are using or switch them off in settings.

string(24) "jsonld single post debug"
The Millennial Source
Powered by  GDPR Cookie Compliance
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.

Strictly Necessary Cookies

Strictly Necessary Cookie should be enabled at all times so that we can save your preferences for cookie settings.

If you disable this cookie, we will not be able to save your preferences. This means that every time you visit this website you will need to enable or disable cookies again.