Federal lands open for oil and gas drilling
The administration of US President Joe Biden said it is set to resume selling leases to drill for oil and gas on federal lands to help drive down the price at the gas pump.
The sale, beginning on Monday, is an about-face for Biden, who during his campaign for the White House called for an end to drilling on federal lands and put a moratorium on them on the first day of his presidency.
The announcement on Friday by the Interior Department said it will offer leases to drill on 583 square kilometers of government land in nine states－Wyoming, Colorado, Utah, New Mexico, Montana, Alabama, Nevada, North Dakota and Oklahoma.
It drew criticism from environmental groups and the fossil fuel industry, and energy experts said it would take at least six months to a year before new drilling on federal land would produce additional supply and ultimately bring down the cost of gas.
The pandemic and the Ukraine-Russia conflict have resulted in higher fuel prices, and the soaring price at the pump is giving Republicans serious midterm election worries.
Critics have blamed Biden's policies on oil exploration for the current high domestic gas prices. However, the administration has countered by pointing to numerous unused leases held by oil companies, and the disparity between falls in oil prices and a lack of comparable drops in consumer gas prices.
The land total being offered for sale is 80 percent less than what was initially being evaluated for potential leasing, and fees that companies pay to drill would rise sharply: from 12.5 percent to 18.75 percent. That is a 50 percent jump and marks the first increase in royalties for the federal government since they were imposed in the 1920s.
Most states and many private landowners require companies to pay royalty rates higher than 12.5 percent, with some states charging 20 percent or more, federal officials say.
Strong criticism
Wyoming Senator John Barrasso, the top Republican on the Senate Energy Committee, sharply criticized the royalty increase and the reduction in the area for sale.
"After begging American oil and natural gas companies for months to produce more, the Biden administration is still doing all it can to restrict leasing on federal lands. Now it's this proposal to dramatically increase the cost of onshore leases while cutting the acres offered for lease by 80 percent."
Hundreds of parcels of public land that companies nominated for leasing had been previously dropped from the upcoming lease sale because of concerns about wildlife being harmed by drilling rigs.
Dan Ritzman, Lands Water Wildlife director at the Sierra Club, said: "Not only does it devastate our planet, it's a handout to Big Oil at the expense of average Americans, who will bear the brunt of its societal, health and financial ramifications."
The Center for Biological Diversity said the decision to open federal lands was a capitulation to the energy industry. "The Biden administration's claim that it must hold these lease sales is pure fiction and a reckless failure of climate leadership," said Randi Spivak, public lands director at the center.
Jeffrey Eshelman, chief operating officer of the Independent Petroleum Association of America, accused Biden of putting out a "mixed message "on energy policy. "This administration has begged for more oil from foreign nations, blames American energy producers for price gouging and sitting on leases," he said, but "the royalty increases will add uncertainty to drilling plans for years".
