According to a recent report, President Joe Biden and his administration have implemented over 200 measures 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 agenda when it comes to American energy. Their plan aims to increase the difficulty of energy production and raise the cost of energy for consumers. Since taking office, the Biden administration and its allies have implemented over 200 actions with the explicit intention of making energy production more challenging within the United States.
The analysis emphasizes the actions taken by Biden on his first day in office, presenting them in chronological order until March of this year. The initial step involved the cancellation of the Keystone XL pipeline, along with the implementation of a moratorium on all oil and natural gas leasing activities in the Arctic National Wildlife Refuge. Additionally, Biden revoked executive orders issued by the Trump administration that aimed to reduce regulations and promote domestic production.
In just one week after assuming office, President Biden took action by implementing further moratoriums on new oil and gas leases in public lands and offshore waters. Additionally, he introduced new regulations to address issues surrounding permitting and leasing practices, which had been entangled in legal battles for a significant period of time. It was only recently, in the previous month, that a federal court finally upheld the initial oil and natural gas lease sale on federal lands. In a separate ruling last December, the Fifth Circuit also mandated the continuation of Gulf lease sales.
In the lead-up to the midterm elections, there have been various measures taken, such as the threat of imposing taxes on the oil and natural gas industry, with the accusation of profiteering being directed towards them. Around six months prior to the general election, there was a proposition made by the administration to increase taxes on oil, natural gas, and coal, totaling $110 billion. This move elicited a strong response from U.S. Senator John Barrasso, a Republican from Wyoming, who led a coalition of 24 senators in expressing their “grave concern” over the administration’s consistent hostility towards American energy production.
The report by IER has been published following the recent steps taken to raise the expenses of oil production in the United States and halt the efforts to replenish the Strategic Petroleum Reserve. Since assuming office, the SPR has been reduced to approximately half of its initial capacity.
According to Kathleen Sgamma, president of Western Energy Alliance, President Biden missed the opportunity to replenish the SPR when prices were low during the pandemic. She believes that the administration’s anti-oil-and-gas ideology prevented them from taking any action to support producers during a period of low demand. Sgamma suggests that the SPR was subsequently drained for political reasons, and emphasizes the need to fill it back up. She criticizes the administration for making politically motivated decisions that distort energy markets, leading to higher costs for taxpayers compared to what could have been achieved with rational energy policies.
According to Ed Longanecker, the president of the Texas Independent Producers & Royalty Owners Association, the decision by the Biden administration to withdraw around 250 million barrels from the Strategic Petroleum Reserve (SPR) is a clear case of prioritizing politics over national security. Longanecker finds it both nonsensical and alarming that some people might believe this decision is based on newfound fiscal responsibility. He argues that this poorly thought-out energy policy will lead to increased costs for consumers, higher global emissions, inflation, and ultimately put the economy and energy security in jeopardy.
According to Daniel Turner, Founder and Executive Director for Power The Future, Biden’s decision to not use American-produced oil to refill the SPR is seen as prioritizing the green agenda over our families and national security. Turner criticizes this approach, stating that only in Joe Biden’s mind does it make sense to lower costs by increasing fees. He emphasizes the importance of a strong America in the face of Iran’s recent attacks on Israel and suggests that Biden’s actions are instead strengthening Iranian oil and Washington’s tax revenue.
According to the Iranian Labour News Agency, Iran’s oil exports have reached $35 billion in the past year, despite the Biden administration imposing more fees on American oil producers. Despite the reimposition of U.S. sanctions on Tehran in 2018, Chinese purchases of Iranian oil have enabled the country to maintain a positive trade balance. Reuters reported that without oil exports, Iran would have experienced a trade deficit of $16.8 billion.
According to The Center Square, last month, the U.S. House Republicans took significant steps to bolster the U.S. oil and natural gas industry. These efforts were largely backed by a few Democrats, primarily from Texas.
Texas is the top producer of oil and natural gas in the United States, with record-breaking production in recent years, according to The Center Square. The state’s success can be attributed to the significant amount of oil and natural gas being extracted from private land, as well as the bipartisan support it receives from Texas elected officials and regulatory agencies. This unique combination of factors sets Texas apart from other states in terms of energy production.
According to the Texas energy industry, their ingenuity and technological advancement have played a crucial role in making the U.S. energy independent and keeping prices low. During the Russian-Ukrainian crisis, Texas LNG exports acted as a “lifeline” for European countries, as highlighted in a TIPRO analysis.
Todd Staples, the President of the Texas Oil & Gas Association, emphasized the importance of having a trustworthy and responsible energy source during these uncertain times. He highlighted that Texas is the ideal trading partner in this regard, as its producers, pipelines, refineries, and exporters are committed to addressing the global energy crisis exacerbated by ongoing conflicts.
He further contends that the production records of Texas cannot be relied upon. It cannot be assumed that this industry will consistently surpass its own achievements, especially considering the deliberate efforts of federal policies to hinder its progress. The obstruction of permits, cancellation of pipeline projects, suspension of federal leasing programs, and inconsistent regulations not only negatively impact American consumers but also impede our capacity to provide energy independence and security globally.
