According to a new report, President Joe Biden and his administration have implemented over 200 actions targeting the U.S. oil and natural gas industry amidst rising energy prices.
According to a recent report by the Institute for Energy Research, President Biden and Democrats have a clear strategy when it comes to American energy: they aim to increase production difficulties and raise purchasing costs. Since taking office, the Biden administration and its allies have implemented over 200 deliberate measures aimed at making energy production more challenging within the United States.
In his first day in office, Biden took several significant actions, which are highlighted in the analysis. These actions are listed chronologically until March of this year. The first action was the cancellation of the Keystone XL pipeline. Additionally, he issued a moratorium on all oil and natural gas leasing activities in the Arctic National Wildlife Refuge. Furthermore, Biden revoked executive orders from the previous administration that aimed to decrease regulations in order to expand domestic production of oil and natural gas.
In just one week of assuming office, President Biden took decisive action by implementing further moratoriums on new oil and gas leases in public lands and offshore waters. Additionally, he introduced new regulations aimed at improving permitting and leasing practices, which had long been entangled in legal battles. It wasn’t until recently, in the previous month, that a federal court finally upheld the first lease sale of oil and natural gas on federal lands. Moreover, in December, the Fifth Circuit ruled that Gulf lease sales must proceed as planned.
Ahead of the midterm elections, there have been various actions taken by the administration. One such action involves the threat to tax the oil and natural gas industry, with the industry being blamed for profiteering. Additionally, a proposal has been made for $110 billion tax hikes on oil, natural gas, and coal. This move has raised concerns among many, including U.S. Sen. John Barrasso, R-Wyo., who has led a coalition of 24 senators expressing their “grave concern” about the administration’s continued hostility towards American energy production.
The report by IER was published following recent measures to raise the expenses of oil production in the United States and abandon efforts to replenish the Strategic Petroleum Reserve. Since taking office, the SPR has been depleted to approximately half of its original capacity.
According to Kathleen Sgamma, president of Western Energy Alliance, President Biden missed an opportunity to replenish the Strategic Petroleum Reserve (SPR) when oil prices were low during the pandemic. However, due to the influence of anti-oil-and-gas ideologues within the administration, they chose not to support producers during a period of low demand. As a result, the SPR was drained for political reasons, and now it is crucial to refill it. Sgamma believes that this decision, driven by political motives, is just one example of the administration’s energy market distortions. Consequently, the government will end up spending more taxpayer money compared to what could have been saved through rational energy policies.
According to Ed Longanecker, president of the Texas Independent Producers & Royalty Owners Association, the decision made by the Biden administration to withdraw around 250 million barrels from the SPR is yet another example of prioritizing politics over national security. He finds it alarming and nonsensical that some might believe the cancellation of contracts to refill the SPR is a result of newfound fiscal consciousness. Longanecker argues that this poorly conceived and intentional energy policy will lead to higher costs for consumers, increased global emissions, inflation, and a jeopardized economy and energy security.
According to Daniel Turner, the Founder and Executive Director for Power The Future, Biden’s decision to not use American-produced oil to replenish the Strategic Petroleum Reserve (SPR) is a prioritization of the green agenda over the well-being of American families and national security. Turner criticizes Biden’s approach, stating that it is illogical to try to lower costs by increasing fees. With recent attacks by Iran on Israel, Turner emphasizes the importance of a strong America that fully utilizes its energy resources to support the world and its allies. Instead, Biden’s actions seem to strengthen Iranian oil and increase tax revenue for Washington.
According to the Iranian Labour News Agency, Iran’s oil exports have totaled $35 billion in the past year, despite the Biden administration imposing more fees on American oil producers. Reuters reports that Chinese purchases of Iranian oil have enabled Iran to maintain a positive trade balance, even after the reimposition of U.S. sanctions in 2018. Without the revenue from oil exports, Iran would have faced a trade deficit of $16.8 billion.
U.S. House Republicans recently took a significant step towards bolstering the U.S. oil and natural gas industry. According to a report by The Center Square, they passed several bills and resolutions with the support of a few Democrats, primarily from Texas.
According to a report by The Center Square, Texas has emerged as the top producer of oil and natural gas in the United States. In recent years, the state has set new records in terms of production. This achievement can be attributed to the fact that a significant portion of oil and natural gas extraction takes place on private land in Texas. Moreover, Texas boasts a bipartisan group of elected officials and regulatory agencies who are actively supportive of the industry. As a result, Texas has surpassed other states in its success in the oil and natural gas sector.
According to experts in the Texas energy industry, their ingenuity and technological advancements have played a crucial role in making the U.S. energy independent and keeping prices low. During the Russian-Ukrainian crisis, Texas LNG exports proved to be a lifeline for European countries, as highlighted by a TIPRO analysis.
According to Todd Staples, the President of the Texas Oil & Gas Association, the importance of reliable and responsibly produced energy from a stable trading partner has become even more critical in today’s uncertain world. Staples emphasizes that Texas is that trading partner, as its producers, pipelines, refineries, and exporters are actively working to address the global energy crisis exacerbated by conflicts.
According to him, Texas’ production records cannot be guaranteed. It cannot be assumed that the industry can continuously break its own records when faced with federal policies that are clearly intended to hinder progress. The delay in permits, cancellation of pipeline projects, closure and delay of federal leasing programs, and inconsistent regulations have negative consequences for American consumers and impede our ability to provide energy freedom and security worldwide.